Buying Tips

Financing an investment

Investing in the right advice is the first step in a successful investment strategy: finding the right loan is just as important as finding the right property.

There are many finance options available to satisfy both long and short term investment strategies. Whether you are seeking an investment for negative gearing, capital growth or retirement income, your lending manager can assist you to find the right finance for your situation. These include:

Borrowing up to 90% of the property value, with the remainder funded by cash savings.
Using the equity in your existing property, which may allow you to borrow enough to cover the entire purchase price and additional costs. 

The amount of deposit a lender requires will depend on your financial situation. For more information on how you can finance your property portfolio, contact your local lending manager today.

First Home Buyers

Buying your first home is one of the most exciting purchases of your life, but it can also be a daunting and, in some instances, stressful experience.

At Ray White Financial Services, our goal is to make this process a lot easier by helping you to find the right home loan for your property purchase.

Some things you might like to consider before hitting the open home circuit include:


How much you can borrow
There are a number of factors taken into account when determining how much you can borrow (your borrowing capacity). These include, but are not limited to, income, credit history, income and employment history. It is important to know exactly how much you can borrow before hitting the open home circuit. For a guide, take a look at the How much can I borrow calculator or for more detailed information or to obtain a pre-approval talk to your lending manager.


Understanding your options
In today’s growing home loan market, it is important to select a loan that is suitable not just for today, but also for the future. There are a number of different types of loans available so talk to your local lending manager about the right choice for your financial situation and lifestyle.


Your deposit
The amount of deposit you need depends largely on the home loan and lender you select. There are a number of general rules surrounding deposits and most lenders require a deposit of at least 5% of the purchase price. While the ultimate deposit amount is 20% or more of the purchase price, there are now many 100% and 100%+ finance options which may allow you to borrow enough to cover the full purchase price and any associated costs. For information on the right option for you, talk to your local lending manager.


Fees and charges
In addition to your deposit, there are a range of fees and charges that you will need to pay when purchasing a property. As a rough guide, it is recommended that you budget approximately 5-7% of the purchase price, on top of your deposit, to cover these costs. See Fees and charges for a general outline of what additional costs you may need to cover, or contact your local lending manager.


First Home Buyer Benefits
To help first home buyers enter the property market, various grants, concessions and benefit schemes have been introduced both in Australia and New Zealand.

The First Home Owners Grant, an Australian Federal Government initiative, is a one-off, tax free $7,000 grant made available to all first home buyers who meet eligibility criteria. Individual State And Territory Governments also offer additional grants and duty concessions to first home buyers.

In New Zealand, as part of the KiwiSaver initiative, a Deposit Subsidy has been established to assist in the cost of a home loan deposit. The first subsidies will be paid out in 2010 to people who started KiwiSaver contributions in 2007.

For more information about first home buyer grants and concessions and eligibility requirements in your area or state see First Home Owners Benefits.


Pre-Approval
Who wants the heartache of finding the perfect property, only to miss out on it because you can’t organise the finance in time or think you can’t afford it? Pre-approval allows you to be in a position to act as soon as you find THE property. To apply for a pre-approval contact your local lending manager.