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Fixed Interest Rates Explained

Although fixed interest rates are having their moment in the spotlight thanks to whispers of a cash rate change, what are the pros and cons to consider?

While interest rates are currently sitting at record lows almost on a global scale, many homeowners right around the nation are understandably anxious about what the future holds for them in the event of any changes. 

Fixed Interest Rates Explained

For prospective home buyers and existing property owners alike, the timing and magnitude of any changes to interest rates is being closely watched. Even the smallest increase could mean hundreds of dollars more in mortgage repayments per month, especially considering growing rumours surrounding a potential hike to the cash rate as early as June. 

While it’s not uncommon for lenders to offer lower rates to entice new customers, they often fail to look after their existing customers with the same benefits. Banks don’t make a habit of checking in with their customers to let them know if they’re potentially missing out on a better deal, which is why fixing interest rates is currently a hot topic amongst Australians from all walks of life – but is this really the solution to curbing the rising cost of living? 

Understanding How Fixed Interest Rates Work 

Choosing a fixed or variable interest rate for your home loan often comes down to how familiar you are with the interest rate cycle, and what the market is up to. With the world feeling slightly more daunting than usual – particularly if it’s your first big foray into a large scale loan – you should be paying extra attention to your financial commitments, and how these changes could potentially impact you and your mortgage.

When compared to a variable interest rate, or one that fluctuates along with global economies, fixed term interest rates can provide stability, certainty and security. Although they traditionally sit slightly higher than variable options, fixed interest rates provide protection against fluctuating financial markets. 

The primary benefit of a fixed rate home loan is that it gives consumers the certainty of knowing that their repayments won’t change over the fixed interest period, which is usually between one and five years. Should the interest rates rise, having a fixed rate loan means no increase in mortgage repayments until the fixed term expires. 

Considering all of the potential benefits that fixed interest rates offer, what do you have to lose? Well, it’s important to note that loan products with fixed rates rarely feature some of the best benefits of a mortgage, such as access to an offset account or the ability to redraw, as well as limits on making extra repayments. In addition, there are also some pretty hefty fees to consider if you break your fixed term agreement – even in the event that you actually sell the property that your mortgage is tied to. 

The solution for homeowners looking for the best of both worlds are split loans. In simple terms, split loans are a home loan or mortgage product that is ‘split’ into multiple loans with different interest rates. One of the most common examples used in today’s market is a home loan that has a variable interest rate component, with the remaining amount linked to a fixed interest rate. 

Although there are no limits on how much a client can allocate to each portion of the split loan – for example 60% fixed, 40% variable, etc – what you are essentially doing is distributing interest rate movements, as well as the relevant risks that may apply or be associated with each feature. While most lending providers offer borrowers the ability to split their loan, it’s not necessarily a valid option on all of their products. As such, it’s always worth checking whether the particular loan product that you are considering can be used as part of a split arrangement.

Given the current state of the property market and an interest rate rise looming on the horizon, rate lock is another feature that buyers really should consider in the immediate future. A rate lock is usually applied before a fixed rate home loan settles, as processing your home loan application does indeed take some time. 

Depending on the lending provider and the rate lock options available, once you ‘lock’ in the interest rate with them, the rate you apply for will be secured and confirmed for up to ninety days before your loan settles. In a nutshell, you remove the risk of being caught out with a change to interest rates while you get the paperwork sorted. Depending on your lender, rate lock can cost as little as $500 – while the peace of mind is priceless. 

As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for a mortgage or are about to be, then it’s worth getting in touch with the professionals. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Six Hidden Costs For First Home Buyers

While getting your first abode is an expensive exercise for many first home buyers, did you know that there’s also a wide range of hidden costs to be wary of?

As many homeowners already know, buying any property comes with an eclectic assortment of fees, applications, and warning signs. While any seasoned property baron knows that knowledge is power when it comes to avoiding a potential misstep, there’s a minefield of hidden costs to consider when purchasing a home – particularly for first home buyers.

Given that most members of this cohort have already spent months meticulously saving up for a deposit, it can be incredibly disheartening if you run into further financial setbacks or unwanted surprises. Regardless of whether you’re just starting your research or are about to sign a contract of sale, what are some of the more common hidden costs for first home buyers in Queensland?

Six Hidden Costs For First Home Buyers

Six Commonly Concealed Costs With Property


Buying your first property is also one of the first steps of building wealth, as the equity in the home will usually allow you the opportunity to access further loans if that’s what’s on your radar, such as shares, a managed fund, or even a second investment property.

Apart from having somewhere to live, the quest for home ownership is also about having a long term investment strategy. However, any savvy investment requires its fair share of due diligence, and all first home buyers should be aware of some of the key hidden costs involved with the process. 

Government Fees – Although first home buyers get some great concessions when it comes to stamp duty, many tend to forget about the other government fees that any property purchase comes with. In Queensland, the two major fees for first home buyers to consider include Registration On Mortgage and Registration Of Transfer (Property Title). While significantly less than standard stamp duty, these can still range from a few hundred dollars, to a few thousand dollars depending on the value of your property. 

Legal Costs – You’re going to need the assistance of a solicitor, legal professional or conveyancer to make a strata report, conduct title searches, or to review a contract of sale. The latter isn’t an essential requirement in Queensland as we have standardised terms and conditions, with the costs generally ranging between $1000 to $2000 depending on how complex the transaction is. Do your research when it comes to selecting a reputable lawyer or conveyancer, as they can be a gamechanger if you come across any contractual hurdles. 

Council And Rates – This will be calculated depending on where you live, with the rates in Brisbane ranging from $1200 to $2200 per annum. You may need to rebate or refund the existing property owner if they have already prepaid their rates, before organising your own payment system to the council when you take over ownership. However, these can wind up as extra costs to first home buyers if they purchase a property mid way through a rates period, and leave you owing funds to the person you’re buying the house from. 

Insurance Policies – Building insurance, property insurance, and contents insurance are necessary evils – but are designed to cover you should anything go pear shaped. In Queensland you often need this before you sign the contract of sale, as you would assume legal responsibility of the property from the moment you sign the dotted line. Given the recent weather events large parts of the East Coast of Australia has just experienced, having the right types of insurance is a must from day one. 

Building And Pest Inspections – Arguably the big one for all first home buyers, it’s important to protect yourself against any potential structural issues with the property that may be invisible from the outside, along with any hazardous pest or termite infestations. When combined, these usually are between $500 and $700 in Queensland. Not only do they protect first home buyers from potentially purchasing a lemon, but they’re also a great negotiation tactic and have the power to save buyers thousands of dollars on a new property purchase.

Lender And Bank Fees – With the dreaded lenders mortgage insurance is the big one to watch out for, banks can charge a wide variety of fees just for processing your documents. Although you might have your application fee waived when applying for a mortgage through a bank, there are also other costs to consider like evaluation fees, settlement fees, legal fees and extras for more complex loan products that may be buried deep within the fine print. The alternative? Do your research, and partner with a reputable mortgage broker. 

As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for a mortgage or are about to be, then it’s worth getting in touch with the professionals. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Get Ready For Changes To Interest Rates

Although interest rates are expected to finally rise sooner rather than later, it’s important to get organised now and ensure you’re ready for the changes.

On average, Australian house prices experienced a whopping 22% increase over the course of  2021 – the strongest annual growth the nation has seen since 1989. Nevertheless, what goes up must come down. According to Westpac, skyrocketing property rates are predicted to stall across the nation by May and even drop by the end of the year. 

Get Ready For Changes To Interest Rates

However, it’s worth noting that these reductions were not expected to happen until the RBA increased the cash rate. With buyers reaching the limits of what they can afford, banks reducing how much they will lend, and more properties being listed for sale, house prices in capital cities like Sydney and Melbourne have begun to drop anyway in anticipation of rising interest rates. 

Four Ways To Prepare For Rising Interest Rates

For prospective home buyers and existing property owners alike, the timing and magnitude of any changes to interest rates will often be closely watched. Even the smallest increase could mean hundreds of dollars more in mortgage repayments per month, so it’s important to have a game plan as a means to protect yourself against these types of rising costs.

Should interest rates rise by as little as 1%, it can have massive ramifications on the everyday cost of living for millions of Australians. As an example, if your mortgage has a home loan principal of $500, 000, expect to pay an additional $269 per month. Although some households can easily absorb the hypothetical $67.25 per week as just another expense, others aren’t so lucky – but what can be done about it?

Home Loan Health Check – Before you start panicking about how increases to interest rates will affect you, it’s a good idea to make an appointment with your lending provider or mortgage broker. In simple terms, a home loan health check is a free discussion or “check up” aimed at fine tuning all the complexities involved with your current mortgage.

Consider Fixed Rates –  It’s not uncommon for lenders to offer lower rates to entice new customers, but fail to look after their existing customers with the same benefits. Banks are not known for their loyalty, so ensure you know what’s on offer and don’t be afraid to ask for the best possible interest rate structure, even if that means opting for fixed over variable. 

Use Your Offset Account – Making extra repayments to your mortgage or syphoning off extra money into a separate account or your offset facility could pay dividends in the long run, especially if your current interest rate is sitting lower than what it traditionally would be. In simple terms, getting ahead with your mortgage is one key way to avoid future stress. 

Explore Refinancing – When done well, refinancing your home loan offers a wide range of potential benefits to borrowers, such as securing a more favourable interest rate, changing loan terms to fixed or variable interest rates, gaining access to home equity, consolidating existing debt, and even unlocking certain home loan features like offset accounts. 

One of the most common mistakes that people make when it comes to preparing for rising interest rates is that they spend more than they can afford. Thankfully, taking the time to conduct a lifestyle audit via a budget is a relatively easy and straightforward way to get a hold of your finances, and to ensure that your household can absorb any increased cost of living expenses. 

If you’re in the market to buy this year or are feeling nervous about the prospect of rising interest rates, it’s worth partnering with the professionals who can help you navigate the ever changing property market – but where do you find them?

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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How To Prepare Home Loan Documents

If you’re soon to be applying for a mortgage and are pondering what home loan documents will be requested of you, it’s important to get organised in advance. 

Like any big ticket purchase, applying for a home loan usually requires a significant amount of paperwork – particularly if you actually want to get approved. From payslips to proof of identification, banks don’t give out loans to just anyone without doing at least a bit of background research into you first. 

How To Prepare Home Loan Documents

Above all, the primary concern of any lending provider is mitigating their exposure to risk. If you’re able to present yourself as a favourable candidate for a home loan, it makes the process of getting pre-approved relatively straightforward, and things like a sizable deposit, a history of regular savings and a clean credit report will all work wonders in improving your application. 

However, the way that you present your home loan documents also have a role to play in getting approved as well, which is where partnering with a reputable mortgage broker can be worth its weight in gold. 

The Ultimate Mortgage Documents Checklist 

Apart from ticking all the right boxes, one of the first things that any applicant can do when it comes to getting approved for a home loan is to partner with an industry accredited mortgage broker. Regardless of your personal circumstances, mortgage brokers are industry professionals who know the ins and outs of the world of home loans. 

Not only will they be able to suggest lending institutes that are suited to your own set of individual circumstances, but they can also help you with your documentation to ensure your application hits all the right notes. However, there’s still a few basics that just about every application will require, with the fundamentals of home loan documents including the following. 

Proof Of Identification – To tackle the legal stuff and ensure that you are who you say you are, just about any lending institute will require applicants to verify their identity when making a loan application. Forms of primary identification with some kind of photograph include a valid passport, drivers licence or proof of age card. 

Proof Of Income – Your borrowing power is calculated using the net amount left after your monthly income and deducting your expenses, so it’s crucial to get your proof of income documentation right. Along with payslips and even group certifications, be sure to include any extra income like rental earnings. Self employed applicants may find this process more difficult. 

List Of Expenses – Many applicants underestimate how much a bank will scrutinise their list of outgoing expenses, so don’t take these mortgage documents lightly. Everything from your phone bill to a Friday night kebab habit will be taken into account, so it’s a good idea to review your bank statements and start cutting back before applying for a mortgage. 

List Of Assets – Like it or not, multiple assets have a tendency to make lenders feel more confident about your security. As a borrower, the sale of assets can assist in the repayment of your home loan if an unexpected redundancy or unemployment occurs, so be sure to list any property, vehicles or other savings that are tied to your name. 

Existing Liabilities – In contrast to assets, liabilities are any financial debts or obligations you may have. In order to accurately predict whether you’ll experience any mortgage stress further down the track or not, lending institutes need to know what other financial commitments you may already have ties to, such as existing home loans, personal loans or credit cards. 

Borrowing Purpose – The circumstances of why you are applying for a home loan will determine what kind of mortgage documents your financial institute will ask for. First home buyers and other owner occupiers need to prove a transparent history of savings for at least six months, while property investors and refinancing applications are a whole different ball game. 

When it comes to submitting your home loan documents, “packaging” your application is where a mortgage broker really shines. This process is never done with a one size fits all approach, as they know what works and what doesn’t, and how it varies between each lending provider. If you haven’t already enlisted the services of a mortgage broker, it might be time to reconsider – but where do you find one?

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Why House Prices Are Set To Drop

Depending on where you are in the property market, whispers of falling house prices will either fill you with joy or dread – but what’s triggering this change?

While the past twelve months have not been so great for the average first home buyer, sellers have had extremely favourable conditions to work with. In 2021, capital city buyers across the nation forked out an average of $1,066,133 to buy a house, surpassing the million dollar mark for the first time in history. 

Why House Prices Are Set To Drop

This astonishing figure represents an annual increase of 25.2% and a quarterly rise of 6.5%, with the latter demonstrating that the market bounced back in a big way at the end of the year following months of uncertainty linked to ongoing lockdowns and travel restrictions. 

Although what goes up must eventually come down, house prices are stalling at a faster rate that anyone initially predicted. While the property market hasn’t quite hit its peak in regional areas of Australia, all factors are pointing to a downturn in house prices in the not so distant future, particularly for Sydney and Melbourne. 

Australia’s Property Market Is Finally Set To Cool Down 

On average, Australia experienced a whopping 22% increase in house prices over the course of  2021 – the strongest annual growth since 1989. However, according to Westpac, skyrocketing property rates are predicted to stall across the nation by May and even drop by the end of the year, with the bank predicting that house prices will drop by 2% across the country for the whole of 2022. 

However, it’s worth noting that these reductions were not expected to happen until the RBA increased the cash rate. While this is yet to happen, house prices have begun to drop anyway. With buyers reaching the limits of what they can afford, banks reducing how much they will lend, and more properties being listed for sale, Sydney and Melbourne are leading the pack with falling house prices before the market has seen a single change to interest rates. 

While Australian home prices rose an average of 0.7% in March 2022, house prices in these two major cities actually fell by 0.2% and 0.1% respectively, with their growth rates in the March quarter lagging well behind other capital cities. Although the figures aren’t astronomical drops, industry experts are marking them as the beginning of the end of the Australian property boom.

One way or another, there is a limit to how much buyers can afford to pay. According to Gareth Aird, the head of Australian Economics for the Commonwealth Bank, house prices have dropped due to the budgets of buyers being stretched to their maximum. 

“The evidence is pretty clear. Although prices have peaked in the two biggest capital cities, affordability has become stretched because prices have gone up so much. There is a limit to how high they can go, and you can’t continue to grow indefinitely – that affordability picture has kicked in earlier in Sydney and Melbourne.”

However, there is one state in particular that is bucking this trend: Queensland. While this may not mean good news for everyone, annual price growth in Brisbane alone is now sitting at just under 30%, with particularly strong gains noted for standalone dwellings and top tier properties. Brisbane’s western suburbs originally led the pack, but regional areas further away from the CBD such as Ipswich, the Gold Coast and the Sunshine Coast are the locations keeping the momentum going. 

Overall, falling house prices will be linked to the tightening of lending criteria, increased interest rates, decreased affordability, international borders reopening, and the ongoing construction boom. As such, if you’re in the market to buy this year, it’s worth partnering with the professionals who can help you navigate the ever changing property market – but where do you find them?

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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How To Calculate Equity For Property

Looking to purchase your second property? Then it’s worth learning how to calculate equity for property, as it can help to avoid years of saving for a deposit. 

If you’re already the proud owner of one property, it’s usually only a matter of time before your attention turns towards obtaining another. However, from the lack of brunches to the hardcore budgeting, it’s rare to have fond memories of the savings process linked to the sizeable deposit required for a property purchase. 

Thankfully, the process of purchasing a second property is often quite different when compared to the arduous path of a first home buyer. If you don’t have a firm understanding on how the world of real estate finance works for budding investors, then your first port of call should be learning how to calculate equity. 

How To Calculate Equity For Property

Understanding The Concept Of Equity 

For a small word, equity sure can pack a punch in the world of property. If you’ve been quietly paying down your mortgage, or your home has increased in value, you’ve probably built up some equity – but what’s the big deal?

Depending on your personal circumstances, unlocking the equity in your abode could allow you to upgrade, make improvements to your home or even invest in a new property. In simple terms, equity is the difference between your home’s value and your loan amount, or the funds that you have already paid back to the bank including your deposit.  To calculate your equity, it’s as simple as minusing the outstanding amount owed on your home loan from the estimated value of your property. 

However, accessing your equity is not as simple as strolling into the bank and asking for the funds you’ve already paid back. All lending providers have a wide range of different terms and conditions in regards to how and when you can access your equity, with some offering access to it after as little as six to twelve months. Other factors that may influence using your equity can include:

  • The type of property purchased
  • The policies of your lender 
  • Your servicing position with the bank
  • Your age and income status 
  • Your repayment history and credit file status 
  • Ideally owing under 80% of your existing property value 

It’s also important to understand that your total equity isn’t necessarily all available for you to use. A lender calculates usable equity as 80% of the value of the property minus the loan balance, so it’s important to factor this key figure in when learning how to calculate equity for property. 

As an example, your home may be valued at $800, 000 with a mortgage value of $440, 000. Your lender will calculate 80% of the value of the property – so 80% of $800,000 is $640,000. This means your usable equity would be calculated as $640, 000 (80% property value) minus $440,000 (loan size) = $200, 000. You may be able to use this amount in the form of a home loan increase or line of credit secured against your usable equity.

In addition, another factor that lenders usually take into account is the borrower’s ability to service the loan. Even if you technically have a certain amount of usable equity, if your income, expenses and total liabilities don’t allow you to comfortably repay the full loan amount, then you may be able to only unlock the amount that you can afford, rather than the full amount of equity.

When learning how to calculate equity, it’s also worth noting that this figure can always be tweaked. The most obvious one is paying down your mortgage with additional repayments, which reduces the amount you owe on your loan while increasing the portion of the property that you actually own. 

However, homeowners can also boost their equity by lifting the value of their property. This can be through renovations, extensions or cosmetic improvements,  and yes – you can use existing equity to further increase equity. 

Using equity to fund any kind of large scale purchase should involve careful research. As a homeowner, you still need to factor in things like bank fees, stamp duty, conveyancing and even the costs associated with refinancing. As a result, it’s always worth consulting with a mortgage broker as a means to ensure that you’re still getting a loan product that’s best suited to you, and your individual needs and personal circumstances. 

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

XXX

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A Guide To Buying A House In Queensland

Whether you’re already a local or are making the move from interstate, there’s a few unique factors to consider before buying a house in Queensland. 

As a natural wonderland, Queensland is famous for its white sandy beaches, stretches of rainforest, tropical islands, waterfalls and more. In fact, travellers are often spoilt for choice when it comes to choosing just one destination for their next holiday, particularly for those looking to escape the cities and get up close and personal with the great outdoors. 

When coupled with a relatively lockdown free two year period, it’s no surprise that our southern counterparts have been flocking to the Sunshine State in droves. With our current property market still going gangbusters, limited availability and skyrocketing prices has meant that buying a house in Queensland has never been more tricky for long term residents and new arrivals alike. 

However, our unique climate and local legislation does indeed differ when compared to some of the other states and territories, so what should prospective buyers take into consideration when purchasing a property in this special part of Australia?

Five Things To Consider When Buying In Queensland 

As many homeowners already know, buying any property comes with an eclectic assortment of fees, applications, and warning signs. However, Queensland homes often have their own unique considerations that require attention, and anyone looking to purchase property in this part of the world should take note of the following before signing on the dotted line. 

Be Wary Of Termites – Given that our state’s signature properties are largely made of timber, Queensland homes do often have a reputation for being prone to termites. Once you’ve made an offer on a property and are waiting for the settlement period to arrive, it’s imperative to conduct a thorough pest inspection to scan the property for termites. 

Flood vs Cyclone – Queensland is famous for its famously moody weather swings, particularly when it comes to water. While the top half of the state is exposed to lashings from cyclones during the wet season, the bottom half of the state can experience dangerous flooding events much like we’ve just seen. Be sure to check your zoning before committing to a purchase. 

Check For Insulation – Buying a house in Queensland requires much more “weatherproofing” than the other states and territories, and checking the quality of a property’s insulation will go a long way when it comes to reducing your reliance on the air conditioner over summer. In addition, it may also help to soundproof the property as well. 

Exposure To Construction – As the state begins the clean up from the recent floods, there’s a lot happening in the way of construction. In addition, there’s also quite a bit happening with building in Brisbane and on the Gold Coast thanks to the upcoming 2032 Brisbane Olympics. An agent is unlikely to inform you on these factors, so do your own research before committing. 

Renovate With Care – When buying a house in Brisbane to renovate, proceed with caution. Some extensions and renovations to a pre-1946 house in the Traditional Building Character Overlay require planning approval. Houses constructed in or before 1946 may require assessment against the Traditional Building Character (Demolition) Overlay Code. 

Dubbed “Australia’s Hippest City” by Lonely Planet, there’s no denying that Brisbane has finally started to shake off the perception of being a little bit daggy. Instead, the spotlight is shining bright on the local arts scene, pumping nightlife, and great coffee and restaurants alike. 

Hugging the Brisbane River, the appeal of the city stretches far beyond the central business district. Each suburb of Brisbane doubles as an urban village, and even despite skyrocketing property prices, buying a house in Queensland is still the affordable choice when compared to the likes of Sydney or Melbourne. 

However, finding the right financial product to secure your new Queensland home is no easy feat. Since purchasing a home is not an everyday purchase for most Australians, navigating the many options can be overwhelming – which is where the services of a local Brisbane mortgage broker can be a lifesaver. 

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

XXX

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How The 2022 Budget Will Benefit Buyers

With many first home buyers eagerly anticipating news linked to last week’s 2022 Budget announcements, how will the new changes tackle ongoing affordability?

Although there was a great deal of speculation as to what the 2022 Budget will and won’t include, Treasurer Josh Frydenberg finally put some of the rumours to rest with the official release of the annual plan. 

How The 2022 Budget Will Benefit Buyers

According to the Coalition, the Federal Government’s economic plan has helped Australia weather the biggest economic shock since the Great Depression, outperforming the performance of all major advanced economies. 

However, it’s also important to note that the Liberal Party is also doing its best to retain its current position in the upcoming election, so the contents of the 2022 Budget have been regarded as the “Hot Chocolate” budget where everyone’s a winner – but what does it all mean for the property market?

Unpacking The 2022 Budget For First Home Buyers

Once again, inflation and wages form a central plank to the health of the economy and to the upcoming election. The sharp jump in fuel prices has begun to flow over into food and even clothing, making the “cost of living” a key election issue.

While housing affordability in Australia has long been a contentious issue, national house prices have reached the point where additional measures were all but guaranteed to feature in the 2022 Budget. Although some announcements were accurately forecast prior to the official release of the 2022 Budget, the key takeaways for first home buyers from the Budget include the following. 

FHLDS Expansion – While buyers are usually required to save a 20% deposit or otherwise pay LMI, under the First Home Loan Deposit Scheme, eligible first home buyers can purchase or build a new home with a deposit of as little as 5%, with the government actually guaranteeing the remaining amount. Originally set to wind up on June 30 2022, changes outlined in the 2022 Budget have not only expanded the time frame, but has more than doubled the availability. Rebranded as the First Home Guarantee, there will now be 50,000 guarantees per year for three years from 2022/23, and then 35,000 a year as an ongoing measure.

Family Home Guarantee – Aimed at getting single parents into a home, the newly introduced Family Home Guarantee allows eligible participants to build or purchase an existing home with a deposit of as little as 2%, and isn’t restricted to first home buyers. First introduced in the 2021 Budget as a means to help this demographic to buy their first home or re-enter the market with a deposit as low as 2%, this scheme will also increase to 5,000 places per year until 30 June 2025. This is double the previous scheme’s annual cap of 2,500 places per year, spelling good news for single parents looking to break into the property market. 

Regional Home Guarantee – One of the major additions in the 2022 Budget for home buyers to take note of is the introduction of the Regional Home Guarantee. The new scheme will provide 10,000 places per year for first home buyers and people who have not owned a home for five years. Running from 1 October 2022 until 30 June 2025, the Regional Home Guarantee will be open to applicants who either build or purchase a newly-built home in regional areas. In addition, there are reports that the government is hoping to encourage migrants to settle in rural areas by opening the scheme to permanent Australian residents.

Further measures outlined to tackle the rising cost of living include the well publicised fuel excise, additional tax breaks to low and middle income earners, and other funding initiatives targeting regional communities, including a new $2 billion Regional Accelerator Program, with investments in infrastructure, advanced manufacturing, apprenticeships and higher education. 


However, the question on the lips of many is this – will the new measures and initiatives be enough to get more Aussies into their first home? With an interest rate hike on the cards in the not so distant future, there’s never been a better time to partner up with a reputable mortgage broker to help you navigate the many variables involved with purchasing your first property – but where do you find one?

Your Secret Weapon As A First Home Buyer 

Buying your very first home – and obtaining the finance to do so – can be a time consuming and stressful exercise. Thankfully, the good news is that it doesn’t have to be. 

Since their inception in 2012, Madd Loans have worked tirelessly in providing Queenslanders with the finance tools to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun and educational – and he has a swag of awards to prove it. 

When it comes to navigating the property world, knowledge is power – so why not book yourself into one of Madd Loans’ free First Homebuyer Workshops? Conducted completely online in a webinar format, George and the team at Madd Loans run participants through the world of finance when it comes to your first home loan. This digital model provides flexibility if you’re trying to work around your employment, and is also conducted in a #CovidFriendly manner. 

If you would like to know more about the FHLDS the many other factors involved with buying your first property, please contact the team at Madd Loans today to book in your place at the next free First HomeBuyer Workshop. 

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The Cheapest Suburbs To Buy In Brisbane

Given the fact that the whole nation has experienced skyrocketing property prices, what are regarded as some of the cheapest suburbs to buy in Brisbane?

On a national scale, it’s not surprising to learn that home values are currently up over 20% when compared to the same period just twelve short months ago. Considering the change in spending habits, shortage of building materials and just about everyone in the Land Down Under reevaluating the quality of their lifestyle, buyers in particular have flocked to property in droves. 

The Cheapest Suburbs To Buy In Brisbane

While a surge in demand has affected all corners of the country, it’s Brisbane that came out on top. Although the long and lengthy lockdowns that plagued New South Wales and Victoria no doubt played a role, the Australian Bureau Of Statistics reported that Brisbane’s population had the highest interstate growth rate of all capital cities, and with property prices growing due to the added demand. 

Thankfully, there’s still affordable options to be had providing that you know where to look. Regardless of whether you are an interstate migrant, a first home buyer or even someone looking to downsize, the cheapest suburbs to buy in Brisbane might just surprise you. 

Buying A House In Brisbane For Under Half A Million

As of October 1 2021, Brisbane’s median house price came in at $709,000, while the median house price was $962, 000 in Melbourne and a whopping $1,311,000 in Sydney. At $430,000 Brisbane’s median apartment price is almost half of that in Sydney, which sits at $825,000.

There are multiple markets in the diverse sprawling city of Brisbane, divided by geographic location, price point and property type. While you’re unlikely to get a house within ten kilometres of the CBD for less than $500,000 to $1,000,000 anymore, the cheapest suburbs to buy in Brisbane are closer to the action than you might think. 

Beenleigh – With a median house price of $432,000, buying a house in the south side suburb of Beenleigh is significantly much more affordable than Brisbane’s average. Perfectly positioned between Brisbane and the Gold Coast, its access to the Logan Motorway and Gateway Motorway has seen it soar in popularity amongst families migrating to Queensland. 

Redbank Plains – Not quite Ipswich and not quite Brisbane, Redbank Plains sits in the heartland of the Eastern Corridor of South East Queensland. Given the significant upgrades currently being issued to transport and infrastructure, it’s unlikely that the median house price of just $400,000 is likely to stay that way for too much longer. 

Caboolture – It’s not just the low vacancy rates that make the Caboolture area a great place – with a median house price of $468, 500, it’s also one of the cheapest suburbs to buy in Brisbane. In the region, there is an abundance of schools, including a range of primary and secondary schools and plenty of parklands for families. 

Inala – Inala is well-placed to be a strong real estate performer. It is well-located, has good transport links and sits in an area with good services, including education, health and shopping facilities. With a median house price of $450, 000, it’s a great choice for investors looking to buy a rental property without the pressures of a large mortgage. 

Browns Plains – Situated just twenty four kilometres from Brisbane’s CBD, the median house price in Browns Plains is $475, 750. With lots of affordable homes and a growing infrastructure and facilities. There’s lots of commercial opportunities and there have been many job creation projects in the area, which is leading the current boom with families moving to the south side. 

For those who aren’t adverse to purchasing a unit, townhouse or apartment, it often means being closer to the big smoke of Brisbane City. Other suburbs that feature some of Brisbane’s cheapest unit prices include East Brisbane, Coorparoo, Clayfield, Nundah, Taringa and Kedron. 

Bowen Hills, in Brisbane’s inner northeast, is the cheapest suburb in Brisbane to buy a unit. Here, prices have actually fallen by 13.7% over the past twelve months to a median price of $362, 500, providing a unique window of opportunity for buyers before the arrival of international students and tourists to our shores. 

Whether you opt to buy or sell property in the near or distant future, there’s a great number of variables to consider when determining if it’s better to wait or strike while the iron’s hot. For buyers in particular, the services of a reputable mortgage broker can help you to understand the ins and outs of the world of home loans and ensure that you’re matched to a product that’s best suited to your own individual set of circumstances – but where do you find one?

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.