Finance Knowledge Archives - Page 2 of 4

What is a Construction Home Loan?

Posted on March 11, 2020March 16, 2020 by Uniik Finance

A construction home loan is a home loan that is designed for people wanting to build their home instead of purchasing an existing one. As a result, it has a unique payment structure where you only borrow in stages as more progress is made on the construction. This varies from loan to loan, but the usual payment structure is based around the completion of five stages:

The Foundation, includes levelling, plumbing and waterproofing
2. The Frame, including brickwork, roofing and windows
3. Lockup includes external walls, windows and doors.
4. Fit-out, includes inside fittings and fixtures, plasterboards, cupboards, benches, plumbing, electricity and gutters.
5. Completion, this is the final amount that is paid out from the loan and usually includes the completion of contracted builders and equipment, plumbing, electricity and overall cleaning.

You only pay interest and repayments on the funds you have actually used so far. Therefore, if you have only completed the foundation so far, you only pay for the foundation and the frame once you start work on the frame. The full amount that you are able to borrow for the construction loan will partly be based on the final value of the completed construction.

It is possible to use a standard home loan for building a house. The disadvantage is that you will have to start paying interest and repayments for the entire loan from the first day.

A construction home loan may be a worthwhile option if you are considering building your new home instead of buying an existing one. However, they differ greatly from a standard home loan, so it is worthwhile talking to a mortgage broker to learn more.

If you would like to learn more about construction home loans, contact us today.

Secure Your Future with a Pre-Approval

Posted on March 11, 2020March 11, 2020 by Uniik Finance

A pre-approval is when a lender approves you for a home loan before you actually decide on a house to buy. It’s essentially a guarantee that you will be approved for a home loan if you decide to apply for it. By being proactive with a pre-approval you reap a host of benefits that can be useful when buying a home.

Peace of mind

Buying a home can be a stressful and complicated process. By obtaining a pre-approval you can rest easy knowing that once you decide on a home it can be yours.

Focus on the things that matter

Getting a pre-approval will allow you to narrow down the home that fits within your budget. Knowing what you can borrow allows up to cut out the homes you can’t afford and spend more time looking at the homes you can.

Increased bargaining power

House sellers will be more willing to accept your offer if they know you are pre-approved. This gives your offer more credibility and the potential to negotiate a lower price than is listed. If the choice comes down to your offer and another at the same price the seller will likely choose yours knowing it comes with a pre-approval.

Armed for Auctions

It’s easy to get lost in the heat of battle when you’re at an auction, fighting for the house of your dreams. A pre-approval gives you the knowledge you need to protect yourself from bidding more than you can afford. You’ll know the limits of your loan, and the limits of what you can and can’t afford so you protect yourself from any rash decisions.

Buying a home is a big decision that requires many hours of careful consideration and countless more searching for homes. Make the job of buying a home easier by obtaining a pre-approval.

If you want to learn more about our services, please get in touch with us today.

Can you afford an Investment Property?

Posted on March 6, 2020 by Uniik Finance

An investment property can be a tempting proposition to a budding investor. It’s one of the most stable and straightforward investments you can make and the opportunity for passive income from rent exists. The downside is that not everyone can afford an investment property because of the massive amount of money required for the deposit and monthly loan repayments. Here are some of the factors that need to be considered when determining if you can afford an investment property.

Identify your priorities

You need to know before you purchase the property of how it’s going to impact your budget and financial goals. You may have to make sacrifices in other areas in order to afford an investment property. If this is a problem for you then you may need to rethink your priorities before you consider yourself able and ready to afford an investment property

Determine how much you need for a deposit

Ideally, you want to save at least 20% of the property’s value as most lenders won’t allow you to borrow more than 80% of the property’s value unless you pay for lenders’ mortgage insurance. When you’re already taking on a massive investment, you don’t want to pay for unnecessary insurance too. Being able to afford a 20% deposit is a big factor in being able to afford an investment property.

Compare homes across different areas

While you may not be able to afford an investment property in your State, it is possible you may be able to afford one in another State where prices are significantly cheaper. Therefore, it’s worth considering the house prices across the country before deciding if you can afford an investment property or not.

There are a number of factors that need to be carefully considered to determine the affordability of an investment property.

If you would like to learn more about investment properties and whether you can afford one, contact us today.

4 signs it’s time to move neighborhoods

Posted on March 6, 2020March 6, 2020 by Uniik Finance

Moving can be a stressful experience, which is why many Australians avoid doing it as much as possible. However, certain factors can arise that make it a good time to move on to another neighbourhood, including rising housing prices, bad neighbours, expanding your family, or avoiding a long commute.

While making the decision to pack up and move is never easy, consider these four signs that it’s time to move neighbourhoods.

Rising prices

Certain parts of Australia have very high costs of living. For example, in Sydney – one of the most expensive cities to live in globally – a one-bedroom apartment outside of the city centre will likely cost you at least $1,624.22 a month, according to Finder. The same apartment in Melbourne would be somewhere around $1,200.

While these numbers aren’t the highest in the world, they are likely to keep rising. And larger, single-family homes in these areas would likely cost a lot more. If you see your neighbourhood growing, this probably means that housing prices will start to rise. You may want to consider moving to a neighbourhood that will remain steady, so your rent doesn’t skyrocket from one year to the next.

Long commute

Perhaps you’ve got a new job that you love, but it’s much farther away from home, causing you to have hours-long commute. Consider whether or not you will be staying at this job long term, and whether it would add a lot more time to your day to live closer to work.

If you have a family or live with a partner or spouse, consider moving somewhere that is central to both of your jobs or to your children’s school. You don’t want to sacrifice two or more hours per day just commuting. There are likely better options out there.

Bad neighbours

Unfortunately, there are going to be bad neighbours in almost any neighbourhood you choose. But you know it is time to move when these neighbours start causing you stress or making you frustrated.

About a fifth of Australians admits that a recent move was at least in part due to bad neighbours, according to research from ING Direct. Feelings of resentment can easily build up over time, caused by loud music late at night, stomping around in the floor above you, or even more serious offences like theft or verbal abuse.

Expanding your family

It may be time for you to give up your one or two-bedroom apartment downtown and move to a larger space a bit farther from the city centre. Your family may prefer a large outdoor space, an extra bedroom, or peace and quiet over a quick walk downtown.

Consider the needs of your whole family when deciding whether you should move neighbourhoods.

If you are considering a move and would like to know your home loan options, contact our team today.

The benefits of refinancing your home loan

Posted on March 6, 2020March 6, 2020 by Uniik Finance

If you weren’t thinking of refinancing your home loan, you may want to think again. There are many benefits to refinancing that you may want to consider the next time you review your home loan. Refinancing may just be the last key to the puzzle of achieving all your financial goals and saving thousands of dollars.

Reduce your monthly loan repayments

If you refinance to a home loan with a cheaper interest rate you will be able to reduce your monthly payments and your overall mortgage balance, saving you thousands of dollars in interest.

Improve your new home

With the extra funds available to use from lowering your interest rate, you can fund the cost of any renovations or constructions you would like to make on your property without taking out another loan.

Consolidate your debt

One of the options you have when you refinance is to be able to consolidate all of your debts into one loan which makes it easier for you to manage multiple payments.

Potential tax benefits

By refinancing to another loan and using the savings to invest you can potentially take advantage of potential tax benefits such as negative gearing and depreciation benefits. Due to all the potential benefits of refinancing your home loan, it is a choice worth considering. A mortgage broker will help you unlock these benefits by finding you the best home loan for you possible.

If you would like to learn more about refinancing your home loan and the benefits of doing so, please get in touch with us to day

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I've had the pleasure of using Uniik Finance for many of my purchases, Hans' is always fantastic. He knows the business very well, he's very thorough and diligent to make sure a successful loan and settlement. Highly recommended.

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What can I possibly say about Hans And my experience with him!
Extremely competitive ,Professional and efficient
I recently refinanced my home loans where Uniik finance who did all the hard work of finding the best possible loan for my circumstances , when I realised my interest rate had become really uncompetitive due to my old lender not passing through rate cuts and even increasing my rates by small bits here and there over the years. By getting Hans to look into my portfolio and moving me to another loan provider who was able to reduce my rate from well above 6% to just 3.82 %, which adds up to a lot of dollars saved every year. The initial application with with Uniik finance was very easy.
There was no hassle and the time involved was well worth the savings!
Hans has been great to deal with, both through the application and with day to day stuff.Thank you again
Highly recommended.

Mena Abdelmessih