Is 2024 the right time to buy an investment property?

2023 has seen a significant increase in rents for investment properties (10pc for units and 7.5% for houses, and according to CoreLogic’s research director, Tim Lawless the lack is supply is indicating that this growth will continue in 2024! 

Is this a good time to buy an investment property in 2024? 

Home Support for Essential Workers - Shared Equity Home Buyer Scheme

The NSW’s shared-equity scheme can help make owning a home easier for lower-income single parents, older singles and essential workers.

You only need a deposit of 2% or more of the purchase price, and the government will contribute towards the purchase price in exchange for an equivalent interest in the property .

 

The contribution is a percentage of the purchase price. The maximum amount is:

• 40% for new homes
• 30% for existing home

What Are The Benefits Of The NSW Shared-Equity Scheme?

• You buy your home with a smaller deposit (only 2%)
• You save money, as you don’t have to pay Lenders Mortgage Insurance (LMI) which is usually applicable when you’re borrowing more than 80%
• Your monthly repayments are lower since you’re borrowing a smaller amount . There are no repayments, no rent and no interest charged on the governent’s shared equity portion of the property.
• You can pay off the NSW Government and increase your ownership share.

 

Who Can Apply For NSW’s Shared-Equity Scheme?

You can apply for the Shared Equity Home Buyer Helper if you are:

• A single parent of a child or children
• A single person who is over 50 years of age
• A first-home buyer who is a key worker

The key workers who can apply are nurses, midwives, paramedics, teachers, early childhood educators and police officers.

NSW Shared-Equity Scheme Lenders

Two lenders offer the Shared Equity Home Buyer Helper:

• Bendigo Bank
• Unity Bank

Please note that these lenders are not part of our lending panel . However, we would be delighted to help you purchase your own property!!! 

Other government support programmes include 

• Other government schemes like the Home Guarantee Scheme
• A guarantor home loan, which helps you borrow up to 105% of a property’s value
• Waived LMI home loans for essential workers
• No-deposit and low-deposit home loans
• High-LVR home loans

What Are The Eligibility Requirements?

• You are 18 years of age or older.
• You are either an Australian citizen, permanent resident or New Zealand citizen.
• You have a deposit of at least 2% of the purchase price.
• You will occupy the property as your principal place of residence.
• The gross income limit for singles is $90,000; for couples, $120,000 or less.
• As a single parent or older single applicant, you cannot own an interest in any land or property at the time of settlement.
• As a first-home buyer and key worker, you and/or your partner must not have previously owned an interest in any land or property in Australia.
• You have the funds to cover the upfront cost of buying a home, including conveyancing, legal costs, any inspections and stamp duty.
• Your financial assets are under:
• 30% of the total property price if your annual income is more than $93,200
• 45% of the total property price if your annual income is up to $93,200
• 65% of the total property price if you are a single person 50 years of age or older

Is There A Maximum Property Price?

Yes. The maximum property prices depend on where you buy in NSW:

• $950,000: Sydney and major regional centres (Newcastle & Lake Macquarie, Illawarra, Central Coast and North Coast of NSW)
• $600,000: Other regional areas of NSW.

 

What Are My Ongoing Obligations If I Qualify?

After qualifying as a participant for the scheme, you need to fulfil certain obligations to maintain your eligibility. You must:

• Pass annual reviews by providing supporting information
• Get approval from the NSW Government to make any modifications or renovations so that the value of such changes factors into the final sale price of the property
• Maintain the property and keep everything in good working condition
• Take care of recurring property costs, such as water and home loan repayments.

You do not need to satisfy the key worker or single parent of dependent children status on an ongoing basis.

 

Is NSW’s Shared Equity Home Buyer Helper The Same As Help To Buy?

The main concept of NSW’s Shared Equity Home Buyer Helper is the same as the federal government’s Help To Buy scheme. Both offer the same relief through equity contribution, both do not charge rent, and both allow homebuyers to gain ownership whenever they can afford it.

However, there are differences between them:

• Help To Buy is a nationwide scheme, while the Shared-Equity Home Buyer Helper is only for NSW.
• Help to buy is intending to start in 2024 - not yet started 
• Help To Buy does not specifically focus on groups, whereas NSW’s shared-equity scheme specifies groups like single parents, key workers, and people over 50.
• Help To Buy is available only to Australian citizens, whereas the shared-equity scheme is available to Australian citizens, New Zealand citizens and Australian permanent residents.
• 10,000 places will be available for the Help to Buy scheme annually, and 3,000 places a year will be available for NSW’s shared equity scheme.
•  

Frequently Asked Questions: NSW Shared Equity Home Buyer Helper 

Contact me on link below and I will be delighted to explore whether there is an opportunity to assist you with your purchase

Can I Apply For The Home Buyer Helper And Help To Buy?

How Many Places Are Available?

What If I Currently Own Property?

What Types Of Properties Can I Buy?

As A First-Home Buyer, Can I Get Stamp -Duty Exemptions When I Apply For NSW’s Home Buyer Helper?

How Do I Buy Back The Government’s Share Of The Equity?

What Happens When I Sell The Property?

contact me on www.bsifinance.com.au 

 

The steps to get approval for The Shared Equity Scheme In NSW?

• You must contact a participating lender to assess your eligibility before you lodge an application with Revenue NSW.
• Once you’re successful, you will be informed of the maximum contribution amount from the government. The participating lender will then process your application and offer pre-approval. You will then have three months to find and purchase a home.
• To get final approval, you must provide the participating lender with evidence of eligibility and prove that the government contribution is necessary for you to buy the property.
• Once you have final approval, you will get a written confirmation from Revenue NSW to purchase your home.

So, what is the prediction for Sydney property prices in 2024 and beyond ?

The big 4 banks predict house prices will grow by 5pc in 2024 after growing a whopping 10.4pc  per cent  (CoreLogic data ) in 2023! 

This growth is despite  the pundits predicting a dire year in 2023 and 13 rate hikes -which affected buyers serviceability and added thousands to mortgage repayments. 

Why did property rise in 2023? 

• the strong return of international migration 
• Lack of supply resulting in a highly competitive rental market
• help from the bank of mum and dad - inheritance and generational transfer from baby boomers 
• existing equity in property 
• saving buffers built up during COVID-19 lockdowns. 
• First home buyer grants and deals for front line  workers 

What do you think will happen to Sydney property prices in 2024? 

So , what does Ivan Kaye from BSI finance predict ? 

“The graph of Sydney property for the past 50 years shows a steady growth. There may be dips and one shouldn’t look at what happens in one year.  Ivan Kaye predicts a solid return over the next 5 years of more than 20pc! 

Property is not a short term investment.  If you do your research, and buy well, property has been and we believe will continue to be a solid investment - especially with the ability to leverage with a 30 year loan! 

For more information on rates and information about buying or refinancing a property - go to www.bsi finance.com.au

www.bsi finance.com.au

A Christmas present

Bill Mclellan - from our #bbg NEXTTECH Transformation Forum - referred a friend who was getting the run around from a number of banks - to get a mortgage for a house that he had put a deposit down and wanted to move in by Christmas! 

In a week - we got unconditional approval for the client - and he has moved into his new home! 

Winnie and Agnes out for a pint

Hilarious 

BSI Finance is on the move

From 1 January 2024 - BSI Finance is moving to an amazing heritage listed building - Level 1  243 George Street - opposite the post office and at the end of Martin Place ! 

I believe it used to be the offices of Atlassian !!

Onwards and upwards !

Be sure to visit us - or go to our webpage at www.bsi finance.com.au

”Your Mortgage Or Your Life” - My Mortgage Broker, Ivan Kaye, Talks Me Off The Ledge

Hi Ivan,

Thank you for being so amazing on the podcast this week. You spoke so well and I know it’ll help so many people.

Here is a link to listen on Apple Podcasts: https://podcasts.apple.com/au/podcast/self-care-ish-divorce-dating-doing-you/id1681043804?i=1000635351642

A link to listen on Spotify: https://open.spotify.com/episode/6gGSexD31OifwrZieNiU8M?si=9205d626a08a48d5

And a link to listen on Youtube: https://youtu.be/MU-mS_QwUBM?feature=shared

Now, let’s get a mortgage! Haha. 

Meghan 

Meghan Loneragan

hello@selfcare-ish.com.au

selfcare-ish.com.au

+61427356125

Some questions 

• do  you feel like you are laying yourself bare - with your mortgage broker ? Do you feel they are Judging you on your finances and financial position … .How do you compare with others? 
• Mortgage broker or direct with bank?
• How do you know which mortgage broker to chose ?
• Interest rate rises - is this the right time to buy property
• What property to buy - an investment property? Your own home? 

Some insights 

Getting divorced can be likened to  being an entrepreneur who is leaving a stable job - and going full time into a start up - welcome to Club  Fear - with challenges , financial issues , juggling of children,  finding a place to live …..

Your legs  turning to jelly ….

A mortgage brokers  job  is to assess where you are , what you’ve got and what you get - they are professionals - not there to judge but to help you through your journey to lend money to buy assets and help you with your finances.

You are the ceo of your own life - finance 101 - draw a  triangle - 1. Cash flow - lifestyle 2. Assets - those create income Assets -  you - take care of you , property , shares , business, super  3. Risk can happen - take care of risk - minimise the investment in you 4. Leverage opm - other People’s money - exponential returns

Mortgage brokers - why a mortgage broker - you can go to your bank and 60 other employees - get best rate, best mortgage for you , independent , choice ! Can go back to your existing bank with other

It’s all about trust - trust your banker , trust your mortgage broker . Surround yourself with people that are great at what they do and who you know like and trust