James prioritises your comfort and convenience so he will stay with you throughout the process and he will be there when you need him, even after the loan has been completed. James understands that getting a loan is a daunting task, so he is willing to meet with you at your convenience to explain your options, allowing you to make an informed decision.

James is married with two sons. He actively participates in the local community by sponsoring schools, charitable institutions and groups. He has been raised in Rockingham and giving back to his community is something he treasures. “I genuinely care” as James puts it – his commitment will lead his clients in the right path to success and financial freedom.

Justin Smith has been through a lot of challenges and transitions in the banking and mortgage broking industry but throughout his journey, client satisfaction has always been his main concern. He believes that clients who are in need of loans will always look for essential information to ensure that they get the right option for their specific situation, at the same time securing financial aid without having to go through a lot of stress in the process.

“I have witnessed the ebb and flow of the business throughout my career and it is that knowledge and experience that proves priceless to our clients and has helped them navigate what has turned into an ever more complex process,” Justin said.

Justin is equipped with the right knowledge, experience and attitude that made him a reputable name in the finance industry. He has been recognised for his achievements and has received 13 awards to date from different institutions.

Justin is a husband and father of four. As a local of Rockingham, he gives back to his community and enjoys sports as he trains local junior AFL and cricket teams. He is the current president of the Rockingham Kwinana Chamber of Commerce.

It’s refreshing to see so many First Home Buyers coming back to the market, plus it’s also very reassuring to see new and existing property investors looking at their options while prices are lower.

From where I’m sitting, there is a broad mix of finance activity lately, whether it’s just

1. Existing borrowers looking for a cheaper, more suitable loan/lender

2. It could be renters looking to enter or re-enter the property market

3. First Home Buyers as I mentioned earlier

4. Investors looking to get in while prices are ‘low’ (buy at the bottom of a property cycle and sell near the top?)

5. Debt consolidations

6. Renovations of existing homes

7. Divorces/separations (each moving onwards to their own properties)

With Home Loan Interest Rates as low as I can remember and property prices as ‘reasonable’ as they’ll probably ever be in the near future, the opportunities are certainly there for borrowers or potential borrowers to get themselves sorted for the possible path ahead.

If nothing else, it’s worth catching up for a conversation or two, to at least review your current financial situation so you can make an informed decision moving forwards.

This is just my opinion of course, but most people leave it too late, whether buying late in a property cycle or copying their friends activity which can quite often be too little too late.

In the end it’s you and your situation that matters, not what anyone else is doing, but an Annual Review of your financial situation certainly wouldn’t hurt. There is no obligation or cost when dealing with me but it could certainly be worthwhile.

Just my opinion, of course.

As you all would know, the housing market has been very poor over the last few years with house prices falling due to too much stock for sale and not enough demand. The post Global Financial Crisis (GFC) belt tightening from the lenders out there has also been a serious handcuff to the market place.

In recent times, with house prices dropping, First Home Buyers have started re-entering the house buying market which has coincided with numerous investors selling their investment properties.

This is certainly stimulating the market but it is also reducing the amount of rental properties available as those that were rentals are becoming homes to these First Home Buyers.

The snowball keeps rolling meaning that due to there being less rental properties available, the demand is increasing and this drives up the cost of rent.

This then makes more people look at buying, and so the cycle continues.

Obviously this is just part of the vast ebb and flow of the property cycle which may normally go up and down progressively over a 7-10 year cycle. All I’m trying to highlight is that this seems to be the turning point for house prices to start heading back upwards again. I could be wrong but as more people look to buy houses with lower prices and lower interest rates, you would think that it has to have a positive effect on the housing market as far as prices go. It should also, in the coming years, reduce the burden on the rental market, in theory anyway.

The main issue is that houses cannot be built quickly enough to satisfy either the buyers or those who are needing rental accommodation. The lending market is still getting its confidence back also so there is no quick fix. If you ask any investment guru (of which I’m not one) they always say to sell at the top and buy at the bottom of a property cycle, now would seem to be that time if you believe the theory.

I just wanted to highlight where I think the market is and where it could be going.

Well it’s my opinion anyway.

A Healthy Economy
As a starting point, the economy is generally in good standing and envied by others. In fact, some people in the struggling European countries, such as Ireland are moving to Australia in vast numbers to seek employment. This boost should factor into the housing market, as well.

For example, as more people explore Australia as a place to settle, rental properties will become scarcer. And, the increasing demand for rental properties is already causing prices to spike in some areas.

By instead choosing to work with a mortgage broker, Cockburn residents as well as those in other parts of Australia can avoid having to deal with rising rental costs at all by choosing to take steps to buy their home, instead.

Debt and Home Ownership Trends
Some economists also note that although Australians are still borrowing consistently, debts are being paid off quickly. Also, since people are taking on less credit card debt overall and speedily paying off home loans. Kwinana and other local families we talk to are feeling that the dream of home ownership is finally something that’s attainable. Some statistics note that an overwhelming percentage of Australians are paying off their own homes sooner, and do not have any debt against them.

Affordability of Homes is Increasing
Although property prices remain high, an increasing number of people are able to afford them due to factors such as rate cuts, increases in wages and appealing offers worked out between banks and mortgage brokers.

Western Australia residents (such as those in Kwinana, Cockburn, and Rockingham), along with people in other areas are also noticing that some investors feel that the Australian property market is beginning to stabilise, which increases affordability, as well.

Whether you’ve found yourself saddled with the increasing burden of growing rental costs, or are simply looking forward to finally realising your dream of owning a home, consider looking to mortgage brokers to help you navigate through all phases of the process. Our broker team is happy to answer any questions as you go along.

Rental Costs are Climbing

For the 18 months prior however, Perth properties were going through a long-term recession. Now, prices for current properties in Perth are approximately $480,000 as an average house value.

However, current trends are indicating that there may be a growth in terms of a desire for home loans. Rockingham residents and others are often faced with rising rental costs, making it more and more appealing for people to consider buying instead of continuing to rent.

Some real estate experts note that the average house rental cost has climbed more than 10% in just the last year. However, an accompanying upward trend for sales is a positive sign for mortgage brokers. Kwinana, Cockburn, and Rockingham area families could easily become persuaded to take the plunge by making a purchase for their first home, particularly if they have already been considering it for a while, and do not want to contend with growing rental costs.

With a Mortgage Broker, Consumers Feel Confident

At first, homeownership may feel like something that’s not within reach. However, families can simply choose to meet with a company that is well versed in helping with the process from start to finish. With their assistance, a goal of owning a home as opposed to sending in a rent check every month is a dream that’s not so far into the future after all.

When meeting with mortgage brokers, families get the resource of professionals who act as a go-between to interface with the lender, which is often a bank. They can also help a homebuyer get their possible loan at appealing interest rates. This allows an increase in confidence, because potential buyers feel more certain that they are making this move at the proper time, and that their investment will more than pay for itself in the end.

By making the decision to apply for home loans, Perth and the surrounding area’s residents and others can discover the satisfaction that comes from participating in home ownership and investing in their own financial future instead of continuing to rent their property.

An Unsettled Past

Although some homebuyers felt uncertain about the property market’s outlook, others turned to mortgage brokers.

Rockingham and other local area residents may have been wary, because throughout 2012 up to June, prices for houses actually fell 2.1%, following an upwardly revised 3.5% drop in the year through March.

In fact, the Australian Bureau of Statistics noted that the decline was the fifth quarterly decline in a row in terms of a year-on-year basis for the Australian Bureau of Statistics series, which started in 2003.

However, many economists believe that improvements are ahead, especially since the Australian economy is stronger than many other countries in the world.

So, there is no need for past events to dictate what’s ahead for Australia’s property market.

Reasons for Increased Prices

Although the property market has been on the decline for a prolonged period, the sudden strength in the market could be favourable to providers of home loans. Residents may benefit from recent Reserve Bank rate cuts, too. These cuts have occurred four times since last November and economists say that the cuts played a role in the reason why home prices increased in June and July.

Additionally, economists note that the market sentimentality is still very weak, which is causing some people to delay their plans to meet with a mortgage broker. Cockburn and other local families, as well as others elsewhere in Australia are still demonstrating relatively slow sales activity throughout the market as a whole, and there is a feeling among some economists that rate cuts alone will not be enough to stimulate further sales over a long-term basis. However, New South Wales and Victoria have both instituted incentives for first-time homebuyers, and these likely contributed to the increase noted in some areas.

Brokers Can Give Assistance

Some economists believe that current statistics point to market stabilisation. Furthermore, climbing property prices may assist in building the appeal of companies that offer services as a mortgage broker, Rockingham and local area families, along with those elsewhere in Australia can get the help of these companies to secure a strong loan and negotiate with lenders.

Whatever the future holds, there will always be a need for home loans and residents with the dream of ownership can experience the milestone of homeownership with help from their local mortgage brokers. Contact us – we serve Cockburn, Rockingham, Kwinana, and the surrounding areas.

Reasons for the Change

Some people may be curious about why there is such a change in attitude regarding home loans. Kwinana, Rockingham, and other nearby residents, as well as people throughout the rest of Australia may be feeling particularly eager to refinance because they are spurred by the attitude of Treasurer Wayne Swan.

He states that because the Australian government has recently authorised reforms, more power has now been given to the Australian people who may be feeling that they are being treated unfairly by their current banking choice.

Areas Where the Mortgage Changes Are Most Noticeable

New South Wales, Victoria and Western Australia are just three places that have seen an upturn in the amount of mortgages getting refinanced. In fact, a recent article shows that in some areas, the rate of refinancing was as high as 37%.

The Larger Banks Still Play a Role

It is important to note that big banks are far from being obsolete when compared with other solutions from mortgage brokers. Cockburn, Kwinana, Rockingham, and other Australian residents, still held 86% of all housing loans at large banks as of June 30. Although, even as the larger banks still hold a significant share, they did notice that new lending instances shrank, as people began looking into exploring other options proposed by mortgage brokers. Rockingham families, along with the rest of Australia at large actually allowed the smaller banks to see a 24% growth in terms of home loans. Furthermore, in terms of monthly lending, trends for the bigger banks decreased by 2%, while wholesale lenders experienced a 27% increase in their amount of monthly loans.

Although these current trends could certainly change by the year’s end, the statistics so far are already demonstrating some interesting ideas about the future for big banks versus smaller borrowing options in regard to home ownership. Consider meeting with a mortgage broker today and explore the possibility of working out a good plan for you to own your home.

In my mind a bank cannot discriminate because of age, but if you’re talking out a 30 year loan at the age of 60 and planning to retire at 65, the bank has a reasonable expectation for you to have an ‘exit strategy’.

What I mean by this is “how will you keep making the payments once retired?” Or will you keep working til 75? Or will your Superannuation be enough to clear the loan?

It’s not an unreasonable question for you to justify how you’ll manage the debt. It could be as simple as supplying your superannuation statement or just explaining the nature of your particular type of work.

If your strategy is reasonable then why wouldn’t the bank/lender approve the loan? We just have to paint a solid picture for them, but also to be realistic with yourself as to how you’ll manage down the track.

For people with investment properties it’s easier still as they may just sell a property to reduce or clear any debt. Another option really that doesn’t wipe out your Superannuation.

In the end you have to sleep at night with the decisions you make, but if I can do anything to help make that process a little clearer, even if it’s just me playing devil’s advocate, it’s worth consideration.

Do it right the first time.

Best wishes.

The most basic rule in Real Estate in my opinion is the ‘buy at the bottom and sell at the top’ philosophy. It may sound overly simple but, you want to buy an Investment property when prices are down and get in while the market is slow, this is normally referred to the bottom of a property cycle. To me anyway, when the property market is quiet and there are lots of properties to choose from, you’re in a strong position to negotiate and get the ‘most feasible’ deal.

Unfortunately a great deal of Investors wait until their friends are doing something or the news articles come out, by which time the market and house prices are moving upwards again so the benefits are not so great.

Here in Western Australia property values normally double every 7 to 10 years statistically. You can check this yourself through places like REIWA or the Bureau of Statistics.

Property values will go up and down along the way and not all property cycles will be the same but it’s a pretty good guideline in my opinion.

Maybe your next question is “what do we do between cycles?” To me the simplest thing is to diversify your portfolio. What I mean by this is there are property cycles all over the country and they’re all different so there are most likely opportunities elsewhere if the market isn’t conducive where you currently live. I’m a mortgage Broker so my opinions on buying property are obviously biased but there is plenty of information, seminars, research you can do to be comfortable with your own decisions.

Ideally if you have enough equity in your home, you don’t need to use any savings so financing there properties can be quite straight forward. Obviously as part of the process, you will want to talk to your Accountant and preferably a good Financial Planner too so you can make a well informed decision about your possible purchase. Lets’ “do it right once” as they say.

In the end you do what’s right for you, but hopefully this has helped your overall picture of the possibilities.

Best wishes.