LOOKING FOR A HOUSE TO BUY, FOUND ONE, MADE AN OFFER & IT WAS ACCEPTED, SO WHAT’S NEXT?

Posted by Henry | BUYING PROPERTY,HOME LOANS,HOME OWNERSHIP,REAL ESTATE PROPERTY | Monday 28 October 2013 9:35 am

SO YOU HAVE SOUGHT A HOUSE, MADE AN OFFER & IT WAS ACCEPTED-WHAT NOW?

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You found the right house for you, made an offer and were successful- Congratulations! You’re almost there, but before you can call the place yours, you need to get all that paper work right. Have a read here to find out what the next steps are after your successful offer.

Contracts

The selling agent will provide the contract of sale to all interested parties. Once you agree to purchase the home, you will need to provide a copy of the contract of sale to your lender. It’s best to get your solicitor or conveyancer to check over the contract of sale before signing, so be organised if you are planning to purchase via an auction.

State government laws govern property sales in Australia, so check with your local authority to understand any specifics to your locality where cooling off periods and other stipulations are concerned.

Home loan application

Once your contract of sale is completed it’s time to finalise your home loan application. It pays to research a variety of home loans along the way and get a handle on the various product features that might suit your life stage and the longer term plans you have for the house.

Settlement

The most common question asked is, “How long is settlement?”. The time that it takes for your property to settle, and for your loan to be drawn down can vary, but the usual terms include 30, 60, 90 or 120 days. In that time, your bank works with your conveyancer/solicitor (which you have nominated) to get all your paper work ready in time for settlement day.

Settlement day usually involves a face to face meeting between the seller’s solicitor/conveyancer, the seller’s bank representative and the purchaser’s solicitor/conveyancer and bank representative. The meeting will usually take place at the vendor’s bank or solicitor’s office or wherever the vendor’s solicitor chooses.

During the meeting, all documents, including Title, Transfer of Land and other documents will be reviewed by all parties. An exchange of funds is then completed subject to all parties checklists being ticked and all documentation being approved. Your bank will supply cheques for the purchase price (less the deposit you have already paid).

The title is then held by your bank and your loan is drawn down on the day of settlement. Most lenders require that direct debits are then set up, ready for your first mortgage payment. The first payment is usually due a month after your loan is drawn.

Once settlement is confirmed, all you need to do is collect the keys from your real estate agent and your house is finally yours!

LARGE RECTANGLE

Henry Sapiecha

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BIG BANKS LOSING OUT TO PRIVATE FUNDERS BECAUSE OF THEIR SLOW RESPONSES & HIGH REQUIREMENTS

Posted by Henry | BANKS,PRIVATE LENDERS | Thursday 24 October 2013 11:22 am
Big banks lack what it takes to help people
in financial crisis
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Borrowers are increasingly seeing non-bank lenders as a genuine alternative to
the major banks when taking out personal loans.
According to Veda Applied Intelligence’s Consumer Index, the market share for
pay day lenders has tripled between February 2009 and February 2013.
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Thousands of Australians like Donna Lee Baker from Queensland
are frustrated with the long application and approval processes of big banks in a
time of financial crisis.
Ms Baker says she has lost count of how many loans she’s taken out in the
past decade but not one of them has been with a bank.
“I went to take out a small loan for the first time over 12 years ago, and I had
initially approached a bank,” Ms Bobbert says.
“I had no defaults on my credit rating, but still had a hard time because I didn’t
have enough assets or a great deal of savings in my account–even though if
you had assets and savings you wouldn’t need to borrow.
“Then it’d be another couple of weeks until you even knew if you had it anyway.”
Ms Bobbert says that’s far too long as she only applies for loans when it’s urgent
and causing her to need more money straight away.
“When I’ve fallen ill or a family member is sick, I’ll get a loan to help ease the
burden as we need money urgently–this is why banks can’t help me,” Ms Baker says.
“It’s sudden costs like holding a funeral and wake, where you have very little time to prepare but you need to come up with the finances straight away.
“Applying through a bank I’d have to wait 7-14 days just to find out if I was
approved before they even began to transfer the money.”
Ms Baker says she found her financial safety net in some private funders, where she’s been getting all of her small loans over the years.
“A bank couldn’t help me where private funders could,” Ms Baker says.
“Whenever I have needed to call on them, the application process is fast and I have the money in my account the same day
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Henry Sapiecha
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OVER YOUR HEAD IN DEBT, THEN DO UP A DEBT AGREEMENT WITH YOUR CREDITORS

Posted by Henry | DEBT AGREEMENTS,GETTING OUT OF DEBT | Thursday 24 October 2013 10:20 am
Number of Australians turning to debt
agreements is on the rise
man interviews couple
Australians are turning to debt agreements over bankruptcy to escape financial
turmoil, with an increase of 68 per cent in the last five years according to a debt
management specialist.
He says the rise in debt agreements relates directly back to people’s need to protect their assets.
“Australian’s owe over $50 billion on credit cards as living costs force them to put
everyday expenses and even mortgage repayments on plastic,” He says.
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“The part nine debt agreement is the best alternative for people who need to
consider bankruptcy but have assets they want to protect
“A debt agreement is still part of the bankruptcy act and, if entered into, it’s listed on
their credit file in the same way as bankruptcy, however it is increasingly becoming
the preferred option so struggling families don’t lose their home.”
Insolvency and Trustee Service Australia figures show there were 49,034
new debt agreements made between January 2007 and December 2012.
Brisbane woman Ms Gallagher says she feared the welfare of her family as she
struggled to keep up with the mortgage as well as tonnes of consumer debts.
“We were overwhelmed by debts and at limit on credit cards so I couldn’t even find a
way to move money around to improve the situation,” Ms Cronin says.
“It was starting to look like bankruptcy was our only solution, but I was determined to
find a way to keep the house.
“It was a security thing more than anything, we had lived there for years and I was
pregnant with my second child so we needed a home for our family.”
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Ms Cronin says once she had done her research and decided to enter into a debt
agreement it was a matter of finding the right financial company for the process.
“I sent an email with my long list of questions to several different companies and I
received the most comprehensive response from these funders ” Ms Cronin
says.“
Creating a debt agreement is a very complex process for finance companies but I
was only ever shown compassion and understanding to my situation.

“I was fortunate to receive fast and efficient service, with my debt agreement being pulled together before I left work for maternity leave.

“I had a set amount to pay each week that was tailored to suit my budget, I paid it to
just one account and the rest was dealt with by Some lenders
He says entering customers into a part nine debt agreement is a complex
process, but makes payments very simple and straight forward for customers.
“Once an application is approved, all unsecured debts are included in the debt
agreement and the creditors will only receive a percentage of their debt back.
“The debts are frozen so no interest can be added on and at the completion of the debt agreement the remainder that wasn’t paid must be written off by creditors
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Henry Sapiecha
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MORE HOME OWNERS/BUYERS GET MORE GOVERNMENT SUBSIDIES THAN RENTERS

Posted by Henry | BUSINESS LOANS,HOME LOANS,SUBSIDIES | Sunday 20 October 2013 11:25 pm

How does it work that home owners get more subsidies than renters?

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“Only 25 per cent of renters get any support from the government.

High-income earners are the overwhelming beneficiaries of government support for housing, a report has found, turning on its head the popular perception that low-income Australians get the greatest subsidies through rent assistance.

”Only 25 per cent of renters get any support from the government,” the cities program director at the Grattan Institute, Jane-Frances Kelly, said. ”They get none of the support that homeowners get. Even landlords get more.”

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The report, Renovating Housing Policy, found homeowners received $36 billion a year in government subsidies, landlords about $7 billion and renters less than $3 billion.

”We are not arguing that renters should get lots of government subsidies, but we were just really struck by the level of support for owners, given that there are so many reasons for these people to own their own houses anyway,” Ms Kelly said. ”It’s hard to see why they need that level of subsidy.”

Home owners enjoy an exemption from capital gains tax, an exemption from the land tax faced by landlords, special treatment in applying the pension assets test and an exemption from tax for what is known as imputed rent.

”If a landlord is renting out a place, the landlord pays tax on that rental income,” she said. ”Homeowners enjoy the same sort of benefit. It’s as if they pay themselves rent. But they are not taxed on it.

”We are certainly not recommending that we start to tax those imputed rents, there are very few countries in the world that do that, but the size of that support should be recognised when it comes to calculating how the government skews the housing market.”

The report found the scale of the support for owners pushed up house prices, making it harder for younger and poorer Australians to get into the market.

”Support for owner-occupied housing used to be roughly even across all income groups,” the report says. ”Now the highest-income owners get government support of roughly $8000 per year, whereas the lowest-income owners get a little over $2000.”

The report found the skewing of support to ownership, rather than renting, forced people to live further away from the centre of cities than they would like and made it hard for them to move because they face stamp duties.

”If you are living out on the fringes, you often can easily access only a small minority of jobs rather than those in the centre. It means employers face a thinner labour market and workers are locked into jobs they might rather not have.”

Ms Kelly said Australian social norms and the state-based rules governing rent gave tenants little security. This further drove Australians into owning rather than renting, making them less mobile and responsive to the jobs market.

The report recommended state governments replace stamp duty with a broad-based annual tax on all properties and re-examine the biggest tax breaks for landlords: negative gearing and discounted capital gains tax rates.

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Henry Sapiecha
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