Super v Mortgage? Where should you put surplus cash?
The last 18 months have highlighted the importance of future-proofing your financial security. But if you’re lucky enough to have a little cash left in the bank at the end of each month, working out the best place to put it can be confusing.
Aside from depositing it into a savings account, most of us will choose to pay down our home loan or top up our superannuation.
For individual homeowners, a mortgage is often their single largest source of debt and has the greatest effect on their finances, and their ability to stay solvent through wage decreases or wage losses. For lenders, mortgages are typically the most significant asset on their retail banking book, which means that any changes in originations, repayment schedules, and default rates will have significant impacts on their profitability and liquidity.
Great news for those still looking to build with the announcement on 29 November that the HomeBuilder scheme, which provides grants for home builders and renovators has been extended to 31 March 2021. The extension is expected to see a further 15,000 construction projects under the scheme.
With its prime location approximately 40km north of Melbourne’s CBD and boutique masterplanned community of just 480 lots, we all know Donnybrae will be a great place to live! But did you know that it is also a great place to invest?
Heard about the Australian Government’s new HomeBuilder grant scheme, but not sure if you qualify or fully understand what it means for you?
To help, we’ve pulled together answers to some of the most frequently asked questions about the scheme, so you can work out if you qualify.
What is it?
HomeBuilder is a time-limited, tax-free grant program intended to help the residential construction market get through the Coronavirus pandemic. If you're building or renovating your home, you can receive a grant of $25,000 under the scheme.
Great news for Australians dreaming of buying their own home. The Federal Government’s new HomeBuilder scheme provides eligible owner-occupiers with a grant of $25,000 to build a new home or substantially renovate an existing home. This will be a welcome relief to many Australians and the country’s economy as it tries to navigate its way out of the current health crisis.
The Buying Process For Your Next Home - Step 1 - Deciding where you want to move to
City, suburb, north, south, east or west, so many decisions? When residents call Donnybrae home, you’re not only moving into a boutique community but you’re also moving into an area full of exciting change and will be surrounded by all of life’s essentials now and into the future.
The Buying Process For Your Next Home - Step 2 -Budget and finance stuff
Where to next? It’s important to establish your budget. When working out your budget, you’ll need to factor in extra costs such as conveyancing, taxes, duties and fees.
We recommend that you contact your bank or a mortgage broker to find the right type of loan to suit your needs. Once again, our team can help you out by recommending a mortgage broker who’ll be able to step you through the finance process and apply for a home loan.
The Buying Process For Your Next Home - Step 3 - Buy you new home or sell your current home first?
One of the most frequently asked, and notoriously difficult to answer, questions regarding purchasing property is: ‘should I buy before selling my existing property, or should I sell my existing property first?’.
Quite simply, every situation is different, and we recommend you consult an independent financial advisor before making any binding decisions.
There are a few key considerations that can help inform your decision making.
The Buying Process For Your Next Home - Step 4 - Is it possible for you to keep your current home as an investment?
Another option chosen by some purchasers is to keep their current home as an investment and upsize to something larger. This can provide financial benefits, however, we recommend you speak to your financial advisor about your options before making any decisions.