Loan Market Update

5 key reasons why you need pre-approval before you look for a property

We would like to take this opportunity to provide some information on pre-approvals and how it can empower you as a buyer BEFORE you start looking for a property. 

1. Sellers are more likely to take your offer seriously, as they know your finances are in order and that the sale will be likely to proceed. 
2. The ability to bid at auctions confidently, as your finances have already been approved so you have increased certainty on receiving a final approval when time permits. 
3. Certainty around your borrowing capacity, as you’re aware of what you can afford, you have looked at your repayments with a broker and you can feel comfortable living in the property. 
4. A pre-approval lasts for three months, so you have plenty of time to find your perfect property, and even if you do not find it within that time frame, you can reapply when you are ready to do so.
5. It costs nothing to see a broker or apply for a pre-approval.

If you are thinking of buying a property in the next few months, get in touch with Loan Market and we can start building your pre-approval straight away.

ACT Stamp Duty Concession Explained

It is very positive for Canberran that our government is stimulating the construction industry and helping property prices in the local area.

There are three parts to the stimulus package recently announced:

• Vacant Land

For any vacant land you wish to build a property on, Stamp Duty is no longer applicable at this stage.

• Off-The-Plan Properties and Townhouses

For all properties in this category up to $500,000, Stamp Duty is no longer payable. For properties between $500,000 – $750,000, Stamp Duty will be reduced by up to $11,400. For this exemption to be applied, the property must be valued below $750,000 and it must be a live-in dwelling, and you do not need to be a first home buyer.

If you are looking to upsize or downsize from your current property, you will be able to qualify for the Stamp Duty concessions which will make the next move even easier. If you do have any questions about Stamp Duty, give Nitish Kumar a call today.

Renovations Stimulus Package Explained

The new home builder program that the ACT Government recently announced is very exciting for the construction and property industry to have this stimulus package available to Canberrans, with a goal to stimulate more jobs to those working in construction. 

The package works in two sections; 

• Building a New Home

If you are looking to purchase a property under $750,000, you will receive a $25,000 grant from the Government. This includes house and land packages and will be monitored through the Territory/State Governments. The only criteria for eligibility is income level; you must be under a certain income bracket. As an example, if you’re a single person, your base income must be under $125,000. If you are a couple, your combined income must be under $200,000. The stimulus package will be available until December 31st, 2020 where you must enter a building contract before the closing date. The build must commence within three months after this period. 

• Renovations

It must be a substantial renovation to qualify, whereas the criteria are that the renovation costs must total no less than $150,000, and you will be eligible for a $25,000 grant to contribute to the total costs. This grant will not be applicable for external items like pools, garages and sheds. The internal work must be completed by a Licensed Builder. 

If you have any questions about the stimulus package, give Nitish Kumar a call today.