Wednesday, August 22, 2018

investment property

Australia's housing market has turned a corner: the book phase is over, activity has cooled and prices have fallen. The unsustainable price rises of recent years have been replaced by a sense of balance, and speculators are looking elsewhere to make a get-rich-quick buck. Yes, tighter lending restrictions are in place, but for savvy first-time investors looking to make the most of their capital, it is a perfect time to enter the market. 

Recent figures from business analysts CoreLogic show that rather than continuing to fall, house prices are now plateauing: March prices were down month-on-month by just 0.3% in Sydney, 0.2% in Melbourne and 0.1% in Brisbane. 

Meanwhile, population numbers in the east coast capitals are continuing to surge: Sydney and Brisbane each have a growth rate of 2%, while Melbourne is racing ahead to become our most populous capital, with a growth rate of 2.7%. And all these extra people will need somewhere to live. 

Add to the mix the fact the Reserve Bank looks likely to keep interest rates at their current historic lows until at least 2020, and current market conditions offer a wealth of opportunities to investors. 

But before making any major financial decisions, it is essential to:

Do your research
Houses in good areas with access to schools, transport and amenities will always be in hot demand and, as a result, carry a premium price. That is why people have been snapping up the many cheaper new apartments that have been soaring into our cities' skylines. But they come with a caveat. 

The glut of new builds has led to a rise in unscrupulous spruikers. Companies selling the properties on behalf of new developers often market themselves as property investment companies, selling lower quality products for premium prices to unsuspecting buyers. If the units in a new build are being targeted primarily at investors, rather than owner-occupiers, alarm bells should ring, as they are unlikely to make healthy capital gains. 

That is why it is essential to do your due diligence about your chosen investment property. Look at recent sales in the area and talk to local real estate agents; ask them for their opinions on current market values and rental prices. Never rely on solely one source of information before you buy.

Have a plan
During the property gold rush of the past decade, for many investors, the decision to buy has been more about FOMO (fear of missing out) than a planned financial strategy. It is the same fervour that has stoked the Bitcoin bubble.

Before you invest, it is essential to define your ultimate goal, timeframe and what you hope to achieve along the way. Ask yourself why you are investing. Is it for a secure retirement or your children's education? As you looking for long-term rental returns, and are you fully aware of the responsibilities of becoming a landlord? What are the tax implications of your purchase? Do you have an exit strategy?

Without a clear view of your financial future, you won't be able to draw a roadmap to guide you.

Do your sums

As with all investments, finance is the key! The royal commission has brought the banks' practices into the spotlight, and lending standards are tight. That is why it is essential to talk to an expert mortgage-broking professional, one with access to a range of products from first- and second-tier lenders. 

At Zippy Financial, we have a team of experts who call upon years of expertise to match you with the right loan - one that will help you onto the first rung of the investment ladder... and one step closer to a secure financial future.



It has been quite a year for local mortgage brokerage, Zippy Financial and its Director and Principal Broker, Louisa Sanghera, that has resulted in 4 major award wins in the last 6 months.

It all started last November when Louisa's two businesses (Zippy Financial and networking organisation, Connect for Success), were nominated as finalists in the North Shore Local Business Awards, and Louisa scopped the prestigious Oustanding Business Person of the Year award at the same event. 

Since then Louisa and Zippy Financial have gone on to be selected as finalists in four categories in the NSW finals of the Better Business Awards, and went on to win two of these awards at an illustrious event in March 2018, hosted by the industry magazine The Adviser. 

Louisa was also a finalist in the Innovator of the Year category at the Women in Finance Awards, has currently been named finalist in two categories for the approaching MFAA industry awards, and in April, scopped the Best Financial Services Company award at the national Small Business Champion of Australia awards event. 

"I have been overwhelmed at the wave of support and congratulations, both from the local community and the finance industry. I'm so grateful to have been named winner of these incredible awards and feel humbled to share nominations with some truly outstanding businesses. Building my businesses over the last three years has required a lot of hours and hard work, meaning time away from my family and friends, who have been amazingly supportive. 

I'd like to thank Precedent Productions for organising the Local Business Awards and the national Small Business Champions Awards and creating an environment for businesses like mine to be recognised and rewarded for their efforts. I feel incredibly lucky to be part of such a wonderful community of local businesses and will continue to do everything in my power to support them. 

I would also like to thank The Adviser, Momentum Media, and the MFFA, for continually promoting and celebrating excellence in our industry and hosting a variety of incredibly professional and prestigious awards events." said Louisa. 

Louisa is a well-known and well-loved businesswoman on the North Shore and Northern Beaches and is recognised by everyone who knows her as a hardworking, dedicated and visionary leader. She has grown her business from being a sole broker, just three years ago, into a team of four, now employing three brokers and an admin/marketing manager, and works closely with an external team of loan processors and external consultants. 

While building her own successful business, Louisa, being passionate about the small business community, established the networking and business education organisation, Connect for Success. A FREE membership service to help small businesses in the local area, which is funded by Zippy Financial and runs on a not-for-profit basis. 

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Contact Details

Zippy Finance 

PO Box 3078
North Turramurra
NSW 2074

T 1300 855 022 

Louisa Sanghera is a credit representative (437236) of BLSSA Pty Ltd ACN 117 651 760.  Australian Credit Licence 391237. ABN 85 168 278 975.

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