Property Owners: The next generation can still get a flying start. February 2006 RETURN
It seems to be increasingly difficult for 1st home buyers to purchase in quality areas. This is simply due to the high capital gain performances out-pricing most young buyers. With average homes now exceeding $400,000, stamp duty alone will exceed $20,000 on an established home. Not that long ago that would have sufficed as the actual deposit. Does this mean we avoid property because it seems too hard? Do we buy in cheaper areas that will almost certainly be poor performers for long periods? Certainly not! We need to seek all available ways to assist our younger ones get a slice of the action, as the concept of property ownership is more important than ever. The reasons are many. The family home is one of the few asset classes that is tax free. Modern governments now push heavily for self funded retirement and private accommodation. The social trend against personal savings can be offset by savings generated by property assets bought with regular mortgage contributions. Mortgages should become more affordable as time goes on and when paid off, can leave you rent free. The equity created in property can be accessed for many other uses such as education, holidays or even other forms of investment. And so on……..! These benefits are in stark contrast to those with out property and exposed to lack of savings, spiraling rental payments and struggling in retirement. There are many ways to assist our loved ones get into property when their funds may not seem enough to do so: 1. First Home grants are available from Federal and State governments, currently totaling $10,000; 2. Purchasing quality property off the plan in Victoria can mean reductions of stamp duty paid by up to $20,000 at average home prices; 3. Specific finance packages with full lending ratios, low start rates & minimal charges are now quite common. They can be outstanding value provided charges do not increase to excessive levels at a later date; 4. Lending cash to assist the purchase; 5.Rather than giving or lending cash, using a cash deposit or a second property to register as extra security to allow the purchaser to borrow enough to buy with minimum funds. When the property rises in value these other securities can be removed, leaving a fully independent mortgage with the buyer; 6. Guaranteeing a loan for the buyer can help those without loan or savings histories. The guarantee can be removed at a later date; 7. Buying a smaller more affordable property near town as opposed to a larger property in less desirable areas; 8. Purchasing to rent a property out until equity gained in the property allows one to move in or sell and upgrade; and 9. Developer incentives can be very helpful yet need to be carefully considered against the true purchasing cost. Used appropriately, these are a variety of low risk options to assist people to enjoy property ownership. They can even be combined to make the process much more achievable. Intending purchasers should fully investigate all available assistance as property ownership is available to many people who are still unaware they can quite easily make it happen. Common sense also tells us that effective property selection criteria should still be followed. In the end people with good property in vibrant areas will normally have better financial choices in later life. Contact Jason Marston 9381.9381 should you wish to investigate further.
It seems to be increasingly difficult for 1st home buyers to purchase in quality areas. This is simply due to the high capital gain performances out-pricing most young buyers. With average homes now exceeding $400,000, stamp duty alone will exceed $20,000 on an established home. Not that long ago that would have sufficed as the actual deposit. Does this mean we avoid property because it seems too hard? Do we buy in cheaper areas that will almost certainly be poor performers for long periods? Certainly not! We need to seek all available ways to assist our younger ones get a slice of the action, as the concept of property ownership is more important than ever. The reasons are many. The family home is one of the few asset classes that is tax free. Modern governments now push heavily for self funded retirement and private accommodation. The social trend against personal savings can be offset by savings generated by property assets bought with regular mortgage contributions. Mortgages should become more affordable as time goes on and when paid off, can leave you rent free. The equity created in property can be accessed for many other uses such as education, holidays or even other forms of investment. And so on……..! These benefits are in stark contrast to those with out property and exposed to lack of savings, spiraling rental payments and struggling in retirement. There are many ways to assist our loved ones get into property when their funds may not seem enough to do so: 1. First Home grants are available from Federal and State governments, currently totaling $10,000; 2. Purchasing quality property off the plan in Victoria can mean reductions of stamp duty paid by up to $20,000 at average home prices; 3. Specific finance packages with full lending ratios, low start rates & minimal charges are now quite common. They can be outstanding value provided charges do not increase to excessive levels at a later date; 4. Lending cash to assist the purchase; 5.Rather than giving or lending cash, using a cash deposit or a second property to register as extra security to allow the purchaser to borrow enough to buy with minimum funds. When the property rises in value these other securities can be removed, leaving a fully independent mortgage with the buyer; 6. Guaranteeing a loan for the buyer can help those without loan or savings histories. The guarantee can be removed at a later date; 7. Buying a smaller more affordable property near town as opposed to a larger property in less desirable areas; 8. Purchasing to rent a property out until equity gained in the property allows one to move in or sell and upgrade; and 9. Developer incentives can be very helpful yet need to be carefully considered against the true purchasing cost. Used appropriately, these are a variety of low risk options to assist people to enjoy property ownership. They can even be combined to make the process much more achievable. Intending purchasers should fully investigate all available assistance as property ownership is available to many people who are still unaware they can quite easily make it happen. Common sense also tells us that effective property selection criteria should still be followed. In the end people with good property in vibrant areas will normally have better financial choices in later life. Contact Jason Marston 9381.9381 should you wish to investigate further.