Try these tips when you’re looking for a mortgage on your property in Moreton.
WHEN it comes to getting a better deal on your mortgage, a bit of old fashion haggling can go a long way, even with your existing lender.
Pester power doesn’t just work for kids who nag their parents in the supermarket, it also works for mortgage customers looking for a better finance deal. But before you pick up the phone, first, you must decide what exactly is a better mortgage.
“What constitutes a better deal, is its interest rate, fees, features, flexibility or service?” says Resi chief executive Lisa Montgomery. Ideally, you need a mortgage that ticks the boxes on all five, she says.
“There is no denying we are all looking for a competitive interest rate, if you think that your lender could be offering a better rate you should start there with your negotiations. But before you do, you need to do your homework on what’s on offer from others and put your case to your lender.
“Most lenders will do their best to consider this type of request and, if you have been a loyal client over the years, it will stand you in good stead.
“However, the best mortgage deal is the one that delivers on all five aspects of your loan: competitive rate, low or no fees, great features such as a redraw and offset facilities, flexibility such as being able to fix your loan or borrow more money when you need to and, of course, good service.”
This means you also need to do some homework on yourself and what you expect or want from a mortgage before you start negotiating.
Despite many borrowers being reluctant to haggle, making the effort can be very worthwhile, says financial comparison company Mozo.
A survey by the company late last year found Australians are more likely to haggle over the price of a toaster then they are likely to haggle over a long-term commitment such as a mortgage.
Mozo found that less than 30 per cent of borrowers negotiated with their lender before taking up their mortgage, with the vast majority, 70 per cent, just taking what they were offered.
“Only a third of men and a quarter of women ask for a better home loan deal, despite the fact they can save tens of thousands off the average mortgage by doing so,” Mozo’s Kirsty Lamont says.
“Many Australians are reluctant to challenge financial institutions and feel that the banks are the ones with all the power,” she says.
“The truth is, borrowers these days have more power than they realise. A typical borrower with a $300,000 home loan should be able to get a rate discount of at least 80 basis points (0.8 of a percentage point) off the standard variable rate.
“Many banks have off-the-shelf discounts for packaging your home loan but they don’t generally advertise their lowest rates. It’s only customers who push the hardest that get the best deals.”
A secret shopper survey last November found the major banks were prepared to offer discounts of up to 1 percentage point on a $300,000 loan to Mozo negotiators, Lamont says.
Assist Finance Corporation managing director Jason Di Iulio says the best deal will be achieved by borrowers who come prepared to negotiate.
“Understand your current loan terms, for example, is it fixed or variable? What are the rates and fees or any other conditions? Make a note of these and then work out what you need,” Di Iulio says.
“Make a list of your requirements such as a low interest rate, split loans, interest only and so on. Also consider whether you will need a redraw facility, consolidation of other debts and account access.”
Next, shop around. Get advice from a mortgage broker and go online to see what type of offers are currently available.
“Once you have established your needs, combined with the terms of your loan, approach your lender for a better deal,” Di Iulio says. “Ask for further discounts and present your quotes. Ask what is your current lender prepared to do to strengthen your relationship with them?”
First-time borrowers can often feel at a disadvantage, Montgomery says.
“The key is to present well,” she says. “Confirmation of income, proof of deposit, statements for other loan accounts and any other relevant information will make it much easier to negotiate.”
HOW TO NEGOTIATE A TOP MORTGAGE
* Information is power: Do your research, tell the lender what rates you can get elsewhere and make it clear they’ll have to do better to win your business.
* Ask for more: When quoted an initial discount, ask if that’s the best they can do. Banks tend to reserve their biggest discounts for the toughest customers who keep asking.
* Bargaining chips: Offer to bring other business to the bank such as life insurance, credit card or financial planning needs to increase your bargaining power.
* Deals and discounts: Don’t limit yourself to rate haggling. Push for waivers or discounts on application or ongoing fees too.
* Call in an expert: Speak to an industry expert or get help with your negotiating. If you’re not comfortable talking money then get an expert to haggle for you.
Original article published at www.news.com.au by Karina Barrymore, News Limited Network 18/8/2013
Brisbane DA Lodged for ‘Record Sale’ Site in New Farm
One of Brisbane’s best parcels of land is now the site of one of the city’s most ambitious houses, according to a development application lodged with Brisbane City Council.
The vacant clifftop block, located at 31-33 Moray Street, New Farm recently sold to local businessman Jamie Pherous and his family for a suburb record of $11.3 million.
The 1,103sq m lot was sold by Jane Gibson, the widow of celebrated Brisbane architect Robin Gibson, who acquired the site in 1986 for just $200,000.
Designed by Tim Stewart Architects, the proposal includes a four-storey house with a basement level of car parking and recreational facilities.
Located on land zoned medium density residential, the impact assessable application is currently in front of Brisbane City Council, according to CityShape’s new DA Tracker.
The proposal includes a lower level of basement car parking, games room and gymnasium that leads out to a clifftop pool and pool deck.
The upper ground level will comprise a media room, office, study, laundry and combined living, dining and kitchen terrace at the rear.
Level one will include a master suite with expansive dressing room, ensuite and storage room and is accompanied by five bedrooms each with an individual ensuite.
And on the uppermost level, the proposal includes an entertainment room with kitchenette, roof terrace and pool and guests quarters.
Jamie Pherous is the founder and managing director of Corporate Travel Management, one of the largest travel management companies in Australia.
He started the company in 1994 and later floated it on the Australian Securities Exchange (ASX) in 2010.
The proposal comes amid growing confidence in the Brisbane residential market with BIS Oxford Economics predicting Brisbane will lead the Australian capitals with 13 per cent property price growth predicted by 2021.
The average price of a block of land in New Farm is $2.6 million and the previous record for a vacant lot in the suburb was a $5.5 million sale to a developer.
South Brisbane emerges from unit glut with some of the fastest rising rents in the city
The epicentre of Brisbane’s unit oversupply is reaching equilibrium, as renters flock to thousands of new apartments in amenity-rich areas.
But less-developed inner-city suburbs that lack amenities continue to languish.
South Brisbane saw significant levels of development over the past few years, with 1225 units listed for rent in the three months to the end of December, according to the latest Domain Rental Report for the December quarter.
But the supply is starting to be absorbed and the median asking rent for units has risen 5.4 per cent to $485 over the last year, the fourth-sharpest jump in the city.
This compared to even steeper jumps in Holland Park, Clontarf and Bardon, with rises of 12.1, 6.9 and 5.6 per cent respectively.
Source: Domain Rental Report, December quarter 2018
Those in the industry say the South Brisbane market has made a remarkable turnaround in the past year.
“We may have escaped that ridiculous glut we had,” Space Property principal Nick Penklis said.
Renters were haggling on price less frequently and landlords were becoming less likely to hand out incentives, he said.
“Sometimes those incentives were there for apartments not quite at the market level,” Mr Penklis said. “Some would be there to keep a rental guarantee, so it’s an inflated market.
“Perhaps we’re on a more even keel.”
Aria Living’s general manager Zeyad Iman said the developments he managed were not immune to the consequences of over-development, but their premium offering insulated Aria from issues facing low-end properties.
“We’re a bit more expensive but people can justify those costs,” he said.
South Brisbane’s relative amenity was the suburb’s big drawcard, and was why the suburb was outperforming neighbours like Highgate Hill, Mr Iman said. “You’ve only got the view and the location, there’s none of the amenity there.”
Highgate Hill’s rental prices fell the fifth-fastest in the city for both houses and units, down 5.7 and 6.7 per cent in the past 12 months respectively.
But other inner-city neighbourhoods continue to see prices drop.
Brisbane CBD, separated from South Brisbane by the river, was the 10th-worst performing suburb for units, with a fall of 4 per cent to $480 over the past year.
“There’s a stark contrast in the five-year performance in these areas,” Domain senior research analyst Nicola Powell said. “What we have seen is a much greater level of development in the Brisbane CBD than we have in South Brisbane.”
Dr Powell said this could indicate the two side-by-side suburbs could be settling to similar levels, although conditions appeared tougher in the CBD.
“There’s been a lot more rental stock come onto the market relative to the demand in the CBD.”
The detached housing market has not seen the same wave of new supply, with sought-after suburbs recording double-digit rental growth.
Manly, Ascot and South Brisbane had the highest rental rises for detached houses, recording 14.5 per cent, 14.2 per cent and 13.7 per cent rises respectively.
“There would be that desirability factor,” Dr Powell said. “There is an increase of interstate migration from NSW and we can assume that is Sydney.”
All three are established locations with access to good schools, she said.
“So it could be families looking to rent to test the waters in certain suburbs.”
Apartment values to jump up to 11 per cent in some Brisbane suburbs
Brisbane’s recovering apartment market is set to lead the nation over the next two years, with values forecast to grow more than in any other major capital city. The region’s house prices are also looking good – with some areas performing better than others. SEE WHERE
A rise in unit values of more than seven per cent is expected in the inner city, Logan and northern Moreton Bay regions in 2019.
Double digit growth is expected in northern Moreton Bay in 2020, with apartment values set to jump 11 per cent.
Moody’s Analytics forecasts a gain in house values across Brisbane of 1.2 per cent over the next 12 months, with strength in the western and inner city suburbs offsetting declines in South Brisbane.
House values are tipped to grow the most in Brisbane’s western suburbs this year (4.5 per cent).
“This is a reversal of trend from the past few years,” the report’s authors said.
“Home values had risen more than 30 per cent since mid-2012, while apartment values had risen only around 5 per cent.”
It’s not good news for the nation’s two biggest housing markets.
Moody’s Analytics is forecasting a further six per cent correction in house values in Melbourne this year on the back of a 0.1 per cent decline in 2018.
And Sydney house values are expected to fall a further 3.3 per cent in 2019 following a 5.2 per cent drop last year.
“Australia’s housing market has continued its entrenched cooling trend in the final months of 2018,” the report’s authors said.
“The decline has been sharper in home values than for apartment values: Home values have fallen more than 4.5 per cent from their peak late last year, while apartment values are down 3.3 per cent.”
Originally published as Where Brisbane home values keep rising
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