Achieve Homes

CHEAPEST SUBURBS TO BUY IN MELBOURNE www.achievehomes.com.au Are you searching for the cheapest suburbs to buy in Melbourne for your new home? While the price is a major factor in your choice of suburbs in Melbourne, there are also a few other factors to consider when you are selecting the location to put down some roots including lifestyle, convenience, access to shops, community and much more.

In this article, we explore some of the cheapest suburbs to buy in Melbourne and share some of the ideal locations that should be on your radar if you want to have all the modern conveniences and a bustling lifestyle with plenty of access to facilities.

The importance of choosing the right suburb for your lifestyle While the lowest price may be the driving factor in your choice of suburb for your Melbourne house and land package or new build, it is important to consider a few factors before you settle on a location.

To make sure your chosen suburb stacks up to other locations on your checklist, ensure location alone is not the sole decision-maker for your choice of suburb for your new home.

Here are a few things to keep in mind when trying to select the best suburb for your new home:

Local amenities and facilities – consider if your suburb of choice is close to public transport, schools, childcare, parks, doctors and bike paths Proximity to the CBD or your work – while we all want to live in an oasis of calm, driving or using public transport to get to the Melbourne CBD or to work is important, and you want to make sure you are in close proximity, so you don’t spend hours a day getting yourself in and out of work Proximity to shops – for many of us, having a shop nearby for your daily bread, milk and paper is a great way to get involved in the community and have the quick and easy conveniences you need without having to drive for long periods in the car By keeping these lifestyle factors in mind when you are looking for a suburb to buy into in Melbourne, you will be able to manage your daily route into work a little easier, enjoy a healthier lifestyle and have access to your everyday needs.

Popular suburbs in Melbourne that are affordable and offer plenty of conveniences Up-and-coming suburbs that boast all the lifestyle features you’d expect from a thriving community include Tarneit, Aintree, Plumpton, Wyndham Vale, Donnybrook, Clyde North, Melton and Fraser Rise – to name a few.

Whether you are considering purchasing an existing home, or you’re interested in designing a custom home to suit your needs perfectly and purchasing a house and land package, there are plenty of cheap suburbs to buy in Melbourne that offer an abundance of community and lifestyle features.

At Achieve Homes, we’re a leading home builder specialising in house and land packages and new houses in Melbourne’s most affordable and progressive suburbs including Tarneit, Aintree, Plumpton, Wyndham Vale, Donnybrook, Clyde North, Melton and Fraser Rise. We build in some of the most affordable suburbs in and around Melbourne and focus on locations that have the perfect mix of community, location, convenience and facilities. Are you searching for the cheapest suburbs to buy in Melbourne to build or buy your forever home? The friendly and professional team at Achieve Homes build stunning new homes in some of Melbourne’s most affordable suburbs and build in locations that are both cheap but offer all the conveniences you and your family are searching for. Get in touch to explore our house and land packages, display homes and new houses in up-and-coming suburbs across Melbourne.

WHAT TO DO WHEN BUYING A HOUSE? www.achievehomes.com.au Buying a house can be one of the most daunting experiences in your life; there are so many factors to consider and ensuring you are carrying out your due diligence is essential. If you are new to the housing market and you are looking to find out what to do when buying a house, we’ve put the basic steps together for a quick and easy overview on where to start.

Steps for buying a house for new home buyers While you might have researched and gathered all the features you would like in your home, there are some basic steps to consider when buying to make sure you are making a wise investment. Outlined below are some simple steps to consider when buying a home or signing up for a new house and land package with your chosen builder.

Research builders – if you want to ensure you are buying a quality home, you need to ensure the person who constructed the home is a local expert. If you have chosen to go down the house and land package route, be sure to search the best home builders in and around Canberra to get a feel for the companies that have a good reputation and may have been award-winning builders in recent years. Visit display homes – what better way to get a feel for the quality of a builder than to walk through one of their display homes and get a feel for their building and workmanship. Local builders in Canberra often have display homes available to the public, and this is a great way to kick the tyres and understand the attention to detail your builder will provide if you engage their services. Talk to a finance broker to determine borrowing capacity – before you start considering what you will pay, it is important to determine what you can afford to buy based on your income and expenses. Your accountant and finance broker can help to determine the amount you can borrow based on your income and outgoings, and this will ensure you aren’t looking at properties out of your borrowing capacity. Get a home loan – now is the time to look around at banks and credit unions to find out the best loan for your needs. Based on whether you have a salary or you own your own business, you will be able to find a loan that suits you. Home loans have a variety of features including overdraft facilities and much more, and you should take the time to chat with your mortgage broker or bank to understand the difference and what is best for your needs. Talk to a home consultant about best options – having a chat with home consultants will allow you to understand floor plans, features, inclusions, fixtures and what you envisage in your home. If you need extra space for guests or you want a super size kitchen, this is the part of the process where you work out a design and house plan that is perfectly matched to you and your family. Be sure to research any new home buyers grants available for you in your state In the ACT, Canberra locals can access a First Home Owners Grant of $7,000 to put towards the purchase of a new or renovated home that is valued at $750,000 or less. In addition, ACT residents that are eligible have options for stamp duty concessions to put towards purchasing their first home.

A quality home builder is with you from start to finish in your house and land journey, from enquiry, preliminary agreement, pre-construction, construction and ongoing maintenance, at Achieve Homes, we’re with you as you create the perfect home for you and your family.

The team from Achieve Homes offers customised designs and a range of house and land packages for new home buyers searching for their first home. Whether you are ready to buy or you are just starting to check out display homes and house designs, the friendly team from Achieve Homes can help.

Boasting some of the best display homes in Canberra, Achieve Homes works with customers to explore house designs and house plans that are suitable for first home buyers. If you are ready to buy or are starting to gather information on what to do when buying a house, the team from Achieve Homes are here to help.

With a wide range of customer house designs, display homes, and floor plans for our house and land packages across Canberra, we are with you every step of the way in your first home purchase. Get in touch today to find out how we can design a new home to suit your land and budget.

HOW TO MAKE YOUR NEW HOME IN CANBERRA YOUR FOREVER HOME ? www.achievehomes.com.au

A forever home like the name implies is a home that is intended by the occupant or owner to last him or her a very long while, without plans for relocation and serving the future generation of the family to come.

Since this home is meant to last for a very long while, these sorts of homes, forever homes, have a common quality about them. Amongst these, the most basic is the ability of these homes to accommodate growth. Making your new home in Canberra your forever home is and would be one of the best decisions you would take in a long while, as a forever home is for perfect for those looking to stay in it way past retirement age.

Building a new home as your forever home can be an arduous task to carry out. However, the whole process is faster when you know what you’re looking for. One of the things to look out for in building a new home for your forever home is additional rooms. As a home that would serve for a very long time, the potential growing size of the family would have to be considered, as this is one of the issues faced by growing families. As you wouldn’t want to be faced with this issue, additional rooms would need to be built to accommodate a potential increase in the size of the family.

Apart from considering additional rooms for the potential increase in the size of the family, the space for this is to be considered too, a larger living space would be adequate compared to a small living space and having a larger kitchen space would be proper as it would be adequate for a potential increase. As you wouldn’t want to deal with inadequate space, having proper spacing in your home would help eliminate the crowded feeling, allowing for a good flow in your home.

High-quality fixtures should be considered when making your new home a forever home, as having very high-quality fixtures guarantee longevity of the fixtures and help in keeping the cost of maintenance of the home to the minimum. When choosing the right fixtures for your home, don’t just go with what’s trendy. It should appeal to your taste, as this is your home after all! Trends come and go, but if you pick fixtures that truly suit your tastes, you’ll appreciate their design and beauty for the years to come.

An ideal location is a very important factor to consider when making your new home your forever home. Since this home would be a place you would get to spend a greater part of your life in, you wouldn’t want to make a mistake of not having it built at an ideal location. As part of deciding on an ideal location, a lot would have to be considered such as the neighbourhood, proximity of the home to a good school, facilities, amenities, shops, work opportunities and public transport.

Making your new home your forever home, which in itself is a daunting decision to make, one of the requirements to consider would be the overall quality and longevity of the building itself, keeping in mind that as a forever home, you would expect the building to last the test of time. As such, employing experienced professionals who understand how to build the perfect forever home for you is a very worthwhile decision that you won’t regret.

Finding the right builder to make your dream home in Canberra a reality doesn’t have to be difficult! As a leading specialist, having built forever homes for families for over 10 years, Achieve Homes is the best builder for your forever home. You can trust our expertise to build the forever home of your dreams! Don’t just hear it from us, you can take a look at the testimonials from our previous happy clients.

It’s never too soon to start looking at options for your forever home. Get in touch with us to learn more about the various house and land packages and home designs that we offer. Thinking about custom building your forever home? Or perhaps you already have a design and you’re just looking for a builder? We do all of that and more! Contact us today.

TIPS FROM AN EXPERT CANBERRA BUILDER ON HOW TO CHOOSE THE RIGHT HOUSE AND LAND PACKAGE

Choosing the right house and land package within Canberra can be overwhelming, particularly for new home buyers, and there are a range of factors you need to consider ahead of purchasing a house and land package from Canberra builders.

If you’re in the market for a new home or house and land package in or around Canberra or you’re starting to do your research for the future, as local expert builders, we’ve put together some great tips to ensure the entire process is smooth and there are no surprises.

Tips for choosing the right house and land package in Canberra

We’re all unique when it comes to the style, size and location of our home, and your builder should be focused on creating a home design that suits your needs to a tee.

But how do you make sure you are considering all the key points when you are choosing a house and land package?

Here are some things to be aware of when choosing the right house and land package:

Look for a house and land package with a fixed price – the term ‘turn-key solution’ is a common one in the house and land package industry and you want to make sure that you are choosing a package that outlines all the costs upfront and there are no hidden surprises. If a house and land package seems too good to be true, chances are it is. Ask about inclusions, selections, and after-sale service. Choose a style or design that will be suitable for now and in the future – future-proofing a design of a home is essential if you are planning on staying in the home for the long term. While you might have a young family when you move in, choosing a design that suits teenagers with multi-purpose spaces can be beneficial for resale value and also ensure your property will suit your family in the future. Consider the re-sale value when selecting your location – when you’re selecting your house and land package it might seem unusual to take in consideration selling it, but ensuring you are keeping in mind the location and the local community is important to ensure you are building a house in a community that is desirable and great infrastructure. Ensure you can customise your design to suit your family or needs – when you are selecting your house and land package builder in Canberra, be sure to engage a builder that can create a custom design to suit your exact needs. One size fits all doesn’t always work when it comes to home design, and choosing a builder that takes the time to ensure your home design suits your exact needs is essential. Achieve Homes are the experts in Canberra for house and land packages, including designing and building of homes, knockdown and rebuild and much more.

As the local specialist in Canberra for quality new homes, Achieve Homes is proud to be the recipient of a wide range of awards including Winner 2019 HIA Professional Medium Builder/Renovator of the Year (ACT/Southern NSW), Winner 2019 HIA Small Lot Housing of the Year (ACT/Southern NSW), Winner Master Builder Association 2019 – Custom Home Less Than $350,000 and much more.

Whether you’re searching in Canberra for house and land packages, new home development, contract building project, custom home designs, or knockdown rebuilds, Achieve Homes is focused on 100% satisfaction guarantee and the highest level of workmanship.

Let us find the perfect home for you in the ACT. Whether you’re searching for the ideal home design, or you want to discuss a unique design for your dream Canberra home, speak with Achieve Homes today to arrange an obligation-free quote from our Canberra builders. achievehomes.com.au

KNOCKDOWN REBUILD: THE SOLUTION TO YOUR FAMILY HOME IN MELBOURNE (https://achievehomes.com.au/)

Knockdown and rebuild, as it is becoming increasingly popular, allows you or anyone to design a new home by bringing down an already existing structure, to design it to your taste while staying in the area you love, suiting your lifestyle and saving you the stress of relocation. Making a decision for a knockdown and rebuild isn’t an easy choice to make, but making this choice gives you control over where and how you live, and allows you to update your home design according to your tastes. The cost of a knockdown and rebuild is also far cheaper in contrast to a decided relocation, as it minimises the need to basically start from scratch. With the help of a knockdown and rebuild specialist, you can build your family home in Melbourne.

Growing families face several issues, a common one being the increasing lack of space, as the number of family members increase. As younger children grow older, they may require their own rooms, relatives may move in and require their own space as well. In order to accommodate for this, additional rooms need to be added and common living spaces need to be expanded. Knockdown rebuild is a fantastic way to combat this issue.

The ability for a family to finance their new home is always a potential concern, particularly for a growing family. The availability of money might prove to be a difficulty for most growing families, considering an increased budget is needed to improve or maintain the standard of living as their family increases in size. Often times, relocation is too troublesome as families who have already grown to love their neighbourhood may find it difficult to readjust to a new location. On top of that, a suburb that could accommodate to a growing family home may be more expensive in comparison to the family’s present suburb.

The desire to stay in their present location is a common factor of families who do not wish to relocate. Among the reasons for their desire to stay, is the neighbourhood and community that they have grown to love, nearby schools and the quality of education provided in that area, distance to work or job opportunities, facilities and amenities and more. It can even be purely driven by the emotional attachment that one may have to their present home.

Knockdown rebuild is a fantastic way to stay in your neighbourhood while enjoying the increased space, updated fixtures, floorplan and design, all while staying under budget. As knockdown rebuild specialists, we can ensure that your knockdown rebuild project is taken care of. With our Land Prep Pack, detailing the costs, inclusions and time-frames, the entire process is transparent and comprehensible. If you’re looking knockdown and rebuild your home in Melbourne, get in touch with us today.

RENTING VS BUYING A NEW HOUSE IN CANBERRA!

Author – Achieve Homes

Getting to choose between renting vs buying a house in Canberra can be a tough decision.

While both are good and seem to be excellent financial decisions, it all depends on the angle from which you are looking at it. Real estate experts, as well as builders in Canberra, believe that buying a home has the edge over renting.

Nevertheless, there may be unknown factors influencing your decision, be it as an existing investor or as a first-time home buyer. The questions you may find yourself asking are,

“What’s the difference in renting vs buying a home in Australia? Which of the two is more beneficial to me? Should I rent or buy a house?”

Renting vs buying your own home Some people fall back on the ease and freedom that comes with being a renter in Australia. One of the points of relief could be being free from the stringent monthly or weekly mortgage.

Also, repayments attached to owning a home and the pressure that comes with having to save up a particular amount of money to ensure the patterned collection (for fear of foreclosure) is another issue.

Others include payments of repairs, the flexibility of location/movement etc.

While these may be justifiable reasons for such decisions, it will do you well to note that, on the average, renting repayments outstrip mortgages.

In Canberra, it’s no news that her business organisations are incredibly fluid. The overall workforce is continuously on motion, so the price rate of commodities and services are hardly stable.

These affect the rental market profoundly. There are more interstate and the international influx of students and visiting tourists to the attraction centres in the state. These, while mounting pressure on the prices of commodities, affect the rental market tremendously.

Think of what this would mean to those hoodwinked by the ease that comes with rent repayments. It would mean unplanned financial decisions to meet up with the ever-growing, yet unreliable increment of house rent.

Can you imagine the instability it brings on the finances of a home where budgets have been for what to do or what not to do on a weekly/monthly basis?

One major issue with renting is that rent payments are “dead money.” Although tenants in Australia, mostly in Melbourne and Canberra, think they’re “only” making weekly/monthly rent repayments for the houses, the mystery is the fact that they’re indirectly funding a man’s business/plan — who’s looking up to making bigger plans to make more money. Rent payment has no investment potential.

Of course, this case doesn’t apply to those who are making plans to move out of this vicious cycle of weekly/monthly monetary payment for a much better option (owning a home.)

Consequently, if you want something special, you can count on Achieve Homes to build an amazing custom home for you.

Benefits of Being a Property Owner in Australia. With the ever-increasing return on investments (ROI) on Australian property, one would expect that owning a property would be an arduous task. Contrarily, investing in properties in Australia is easier compared to other countries.

Thanks to bodies like Real Estate Institute of Australia (REIA), Australia Prudential Regulation Authority (APRA), Federal Investment Review Board (FIRB), as well as the Government for making property acquisition easier (both for citizen and foreigners).

Apart from the security and peace of mind that comes with owning your own home, there are other significant benefits:

It’s a Worthwhile Investment The development that comes with time always leads to an increase in the price of housing properties. A government project on development may call for the purchase of the land your property stands on, or you may even decide to sell it as times passes. The money the government pays you will surely surpass the amount you bought the house for. You also will find a considerable gain in selling it to any buyer — no matter the location. These factors will help build your wealth.

It Offers Flexibility You can treat the floors and paint the walls according to your liking without being worried about legal fights with your landlord. Other flexibilities include being sure of the number of mortgage payments that leaves your accounts from time to time basis, as opposed to renting payments that fluctuate with demand. Also, with mortgage payments, you develop the discipline of saving for personal growth.

As a renter, how do you prepare for owning your own home? There are practical ways to prepare yourself to buy a new house while in a rented apartment.

Examine the total cost of owning a home. When you compare renting vs buying a new house, there are small additional fees beyond your monthly principal payments that the latter incurs. These payments are interest incurred from the loan used for the purchase, tax, and insurance fees for property protection. You must know all the monetary commitments you’ll be making when you’ve acquired the house.

Identify mortgages that are suitable for you. Do all the “percentage math,” comparing the amount of money you have, the down-payment required and the mortgage companies you intend to engage in this business with.

How good are your credit ratings? To get mortgages with the lowest rates, you must look into ensuring that your past credit transactions approve you as reliable and trustworthy. Consider getting more credit accounts, if you’re operating on just one credit card.

Are you thinking of the best way to own a property in Australia? Achieve Homes is committed to constructing fantastic custom homes in Melbourne and Canberra for our clients.

Get in touch with us today(+61 1800 791 653) to get started on your home ownership journey.

ARE DISPLAY HOMES THE BEST WAY TO INVEST IN PROPERTY?

Author – Achieve Homes

When it comes to showcasing our skills, our craft, and what we have to offer in general, to influence the buying decisions of potential clients, it is only reasonable to put our best feet forward. This means showing off the best products we have on sale to convince prospective buyers that we are the real deal and its time to look for best way to invest in property.

Well, that is what our display homes are to us, letting us put our best feet forward. These display homes are built to taste, esthetic furnishing, intricate kitchen designs, top-notch architecture, floor coverings, and impressive landscaping, all to attract potential investors. However, are they the best choice for property investments?

Display homes are attractive options when it comes to property investments, as they are located in the best areas with the best facilities. Now imagine you could purchase such an investment with the assurance of a rent return up to 8%, coupled with having tenants who manage to keep the place clean, with professional cleaning done a couple of times during the rent period. Sounds great, doesn’t it? That is an advantage that comes with purchasing display homes. But do these homes serve as an excellent long-term investment? Here are some of the benefits that come with buying display homes.

Benefits of buying a display home: Fitted with high-end materials: Display homes are built with the best materials, top-notch finishes, all in a bid to highlight amenities, and the top features that the builder has to offer. Display homes certainly look better than the older homes on the market, as it is used to catch the attention of new customers. No one lives in this home, which leaves it in a better condition than most homes. Builders exert themselves to make sure display homes are built to taste and good enough to impress a first-time buyer. Discount payments: Display homes tend to sell for less than the original value, which is a great deal for the buyer. When you decide to purchase a display home, you buy a new home sooner than expected. Choosing to invest in an already built display home is undeniably faster than building on a vacant piece of land from the ground up. It is also less stressful as it is on a see, inspect and buy basis. With a display property, you do not need a property manager, so that saves you money on property management fees. Note that when you buy a display home, you are signing up to be surrounded by great neighbors, a good plus if you ask me. An opportunity for rental yield: With display properties, you have the chance to earn some more money, especially in a case where you are not in a rush to move back in. In most instances, home builders sell these homes and then rent them again from the buyer at rates that are slightly higher than the usual, so you make your profit. Depending on the agreement made, you could even end up buying some of the furniture and other fittings in the house at discounted rates, cutting costs in a significant way. Purchasing a display home is not all fairy tale, as there are a few CONS when you buy a display home. Some of them include:

Banks do not consider display homes; the rent the builder is ready to pay for loan assessments. They will only consider rent paid if the property was rented for residential purposes. The rental yields will only be high if the home is leased to the builder; subsequently, it will become available at market rates. Ultimately, it is up to you to decide on the best property investment for you, but you should weigh both the pros and cons before settling on your choice. We have only highlighted these to broaden your insights and make your decision easier. For further clarification, you can contact us for help, and we are sure to help in the best way we can.

Achieve Homes’ display homes are currently for sale on a leaseback offer. The display homes on sale are the Ginninderry Display Home, in ACT and the Olivine Display Home and Woodlea Display Home located in VIC. For more information, get in touch with us today.

WHAT FIRST HOME BUYERS NEED TO KNOW ABOUT GOVERNMENT FEES (https://achievehomes.com.au/)

For most people buying your first home is one of the most rewarding and exciting experiences of your life. However, it pays to do your homework and understand all the costs that are associated with making that life-changing decision.

Many first home buyers are often surprised to learn that the price of their new home comes with a number of additional Government fees and charges that need to be accounted for.

Fortunately, for first home buyers in Victoria, the Government offers a number of incentives to help assist new purchases to deal with some of the additional costs.

What is the first home buyers grant? The first home buyer grant (FHOG) is a payment issued by the Government, to help new and young home buyers get into a new home they can live in. For those eligible, you might be able to receive a $10,000 grant to purchase a home in Melbourne or up to $20,000 for areas in regional Victoria.

To receive the grant, you must be buying or building a new home valued at under $750,000. The payment is made to you as a grant and is separate to other exemptions such as the stamp duty rebates.

Your new home can be a house, townhouse, apartment, or unit but must be less than five years old and be the first sale of the property. Established homes are no longer eligible to receive the FHOG.

For more information on FHOG in ACT and NSW, visit this article.

What is stamp duty? When you purchase a home or vacant land in Victoria you will likely pay land transfer duty, otherwise known as stamp duty. Stamp duty will be the single largest cost that will come with buying a property and it’s one that needs to be accounted for prior to purchase, but fortunately for first home buyers in Victoria, you might not have to pay this particular cost.

Stamp Duty is effectively a Government tax that is applied to all property transfers. The rate of stamp duty varies from state-to-state and in Victoria it is calculated on a sliding scale based on the value of the property.

There are a number of factors that go into calculating stamp duty in Victoria and they include, whether you are going to live in the home (if it is your principal place of residence), whether you are a foreign buyer and of course whether or not it will be your first home.

If you qualify as a first home buyer in Victora and the property is valued at under $600,000, you could potentially not pay any stamp duty costs. First home buyers who purchase a property valued between $600,001 and $750,000 are also entitled to a stamp duty concession, but above that upper limit, you won’t be able to receive an exemption.

A good rule of thumb is to allow for 5% of the purchase price if you don’t meet the criteria of a first home buyer. Clearly there are advantages to purchasing or building a new home as a first home buyer in Victoria as you will possibly save up to $30,000 in costs.

For more information on Stamp Duty in ACT and NSW, visit this article.

What are rates? Home and landowners are also forced to pay annual rates to the Government. This is usually a form of Local Government tax and the rates are used to help fund projects and infrastructure in your local community.

The amount you have to pay in rates again is determined by the value of the property as calculated by the valuer-general and is based on different council areas.

As a first home buyer in Victoria, you won’t be forced to pay rates at the time of purchase but will be forced to pay these on an ongoing basis while you own the property over its lifetime.

You can find out exactly how much the rates on a property will be by either asking the selling agent or contacting the local council directly.

First home buyers must also consider that from settlement date they will be liable for these council rates as well as water rates and any other special levies that might be applied by the council or even State Government.

What is land tax? In Victoria, you might be forced to pay land tax on any property that you are not currently residing in. Land tax applies to investment properties, commercial properties and vacant land.

Similar to stamp duty, land tax is based on the value of the land and is applied on a sliding scale for total landholdings above $250,000.

Fortunately for first home buyers in Victoria, your home (known as your principal place of residence) is exempt from this form of land tax.

Benefits for First Home Buyers Clearly there are some significant benefits if you are a first home buyer and you could save around $30,000 if you qualify for the exemptions from these Government fees.

It’s also important to note that most of these costs are one-off expenses so whether you are buying an established home or building your new home with a custom home builder in Melbourne, you can save a significant amount of money.

As of 2020, the Federal Government also introduced the First Home Loan Deposit Scheme, which effectively guarantees the bank loan you use to purchase a property.

What this means for first home buyers in Melbourne is that they can buy a new home with only a 5% deposit (95% LVR) and they won’t be forced to pay lenders mortgage insurance. LMI is generally applied to a loan where the applicant is seeking to borrow more than 80% of the property’s value.

At Achieve Homes, we always recommend seeking professional advice when assessing your circumstances and making financial decisions. However, if you’re interested on beginning your home building journey, contact us today at 1800 854 119 or email us at sales@achievehomes.com.au.

HOW TO GET A HOME LOAN AS AN INVESTOR (https://achievehomes.com.au/)

Australian residential property continues to be one of the strongest performing asset classes for investors.

Over the last 25 years, house prices in Australia have continued to increase at a steady rate of 6.8%, making owning an investment property both a popular and lucrative option for Australians.

Prior to the recent COVID-19 slowdown, property experts predicted the return of the housing boom, as Melbourne property prices continued to rebound strongly. So despite what people may assume of the current pandemic’s effect on the property market, there are still plenty of experts suggesting it is still a good time to be buying an investment property in Australia.

For property investors, arguably the most important stage of the process is usually securing a loan to finance the purchase of their first investment property. While there are subtle differences between home loans for investors and loans for people to live in (owner-occupiers), the process of getting a loan is very similar.

What are the differences between home loans for investment vs. owner-occupiers? A home loan for investment operates in a similar manner to an owner-occupier loan, however, there are a few subtle differences.

Generally speaking, investment loans attract slightly higher interest rates than owner-occupier loans. Investment loans also have modestly higher fees. This is because investment loans are considered slightly riskier than owner-occupier loans.

There might also be some differences in the deposit you are required to put down on a property to be able to access an investment loan.

With owner-occupier loans, it is possible to get very high loan-to-value ratios (LVRs), as much as 95%, and banks and lenders will often accept various forms of collateral including guarantees from parents to help their children enter the property market.

For the most part, these types of loans are less accessible to investors and lenders generally like to see a 20% deposit. However, there is still the option to get a higher LVRs, but they will come with lenders mortgage insurance which comes into effect for loans with LVRs over 80%.

Another key consideration for investment properties and loans is that it is unlikely that you would be eligible for some of the major government incentives, such as stamp duty exemptions or the first-home owners grant. However, potential investors can still access these incentives, they will simply need to purchase and occupy the home for a period of time, prior to making the shift to renting it out as an investment.

Advantages of Investment Loans The key advantage when it comes to getting a home loan as an investor comes down to the fact that you can include the potential rental income which boosts your serviceability.

It doesn’t matter what type of loan you are looking to get, lenders assess both your income and expenses before they will approve your loan application. They do this so they can be sure that you are able to meet your loan repayments based on your income.

For owner-occupiers, they will need to be able to meet 100% of the ongoing loan repayments. However, investors have a big advantage here as they can include future rental income, which can dramatically increase your ability to borrow money from a bank.

It is worth noting that banks will only assess between 70-80% of rental income, as that takes into consideration periods of vacancy for the rental property, property management fees and ongoing maintenance costs.

Another big advantage when it comes to getting investment loans is being able to access the equity in other properties. If you currently own your own home, and that property has appreciated in value, you are able to tap into that equity and use that as a deposit on an investment property.

Different Types of Investment Loans These days, banks offer a huge variety of home loan products to suit all types of investors and their personal situations. However, there are a few key types of loans you should consider.

An interest-only loan is a product that lets the investor only pay off the interest and not principal. While this might seem like a bad idea as you are not making inroads into actually owning the home, there are some important reasons why this is actually a good option.

When you are applying for your investment loan, you will be able to borrow more money if you only need to make interest payments. That is because your weekly or monthly payments will be lower, enabling you to potentially own an investment property when you otherwise could not.

Over time, given the strong returns, we’ve seen in the Australian residential property market, the capital growth will allow you to effectively pay out the loan as the value of your property appreciates over time. A quick rule of thumb is that property prices double every ten years, meaning that by simply holding a property, you will have paid off the debt without ever needing to make a repayment of the principal.

There is also the option for fixed rate vs variable rate loans. For the most part, investors will be better off simply sticking with a variable loan as in the current environment, fixed-rate loans have a higher interest rate, given the low overall level of interest rates.

However, it is important to note that many banks offer a very low introductory offer to new applications and in the current environment it’s possible to secure a very attractive interest rate, if you are looking to take out your first investment loan.

Another type of loan to consider is for those looking to buy land and build. There are house and land loans that you could access for this purpose, or you can get two separate loans – a loan for the land and the construction loan. You can even access loans easily though your custom home builder in Melbourne or Canberra, so it’s worth talking to them if you are looking to build an investment property.

“So, how do I get an investment loan?” To put it very simply, these are the typical steps on how you would get an investment loan:

Save for a deposit. Most lenders will like to see a 20% deposit, however, you can still access higher LVRs (above 80%), but you will need to pay Lenders Mortgage Insurance. Speak to a mortgage broker who can assess your income and expenses and give you an idea of what you will be able to borrow. Assess future rental income. Speak to a property manager who specialises in the area you are looking to invest and get an estimate of comparable rental incomes. This will help you in borrowing more money for your investment property. Consider interest only. Not only will you be able to potentially borrow more money, but the loan payments will be lower.

If you’re looking for builder that understands the property market, Achieve Homes is the builder for you. As experienced custom home builders in Melbourne and Canberra, you can trust us to build a quality home for your investment that suits your budget and fulfils your requirements.

Get in touch with our building experts today at sales@achievehomes.com.au or 1800 854 119.