Wednesday, April 25, 2018

pre approval

Whether you are looking to buy a family home or an investment property, finding somewhere that ticks all your boxes can be difficult. And when you do find your ideal property, you need to be able to act decisively. 

That it why is it essential to have your mortgage pre-approval before you start your property search. It will give you the edge over other buyers. If you do not have your pre-approval you could find yourself disappointed by loosing out. 

Time is of the essence
Today's 24/7 online world makes everything a click away, but unfortunately arranging a mortgage is still time consuming. The queues with the lenders are long and can stretch up to three weeks - and that is if everything runs smoothly! If any issues arise, there will be extra time to find the correct documentation and rechecking things will lengthen the process. 

By arranging your finance before you start your property search, you can be confident that when you find something you want to buy, you can act quickly to make an offer on the property or bid at an auction. 

Price promise
By obtaining pre-approval for your mortgage, you will have a clear idea of your budget - how much you have to spend on the property and what your future mortgage repayments will be. This will allow you to focus your search to only those properties and areas that are within your price range which will save you time and also potential disappointment. 

Pre-approval advantage
Although the Sydney market has cooled over the last few months, there is still alot of competition in the market. Having your pre-approval letter to show an agent will give you an instant edge over those who have yet to arrange finance.

Stress less
Searching for a property is stressful enough when things run smoothly - even more so when problems occur. Organising your mortgage pre-approval will allow you to smooth out many of the bumps in the journey to your new home or investment before you encounter them. 

Zippy Financial will not only organise the best mortgage to meet your financial needs, we also have a wealth of industry know-how at our fingertips. We will be able to answer all your property searching questions and recommend other trusted professionals - from conveyancers to accountants to building inspectors - that will ensure the transition to your property search will run as as quickly and smoothly as posssible. 

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As any sleep-deprived new mum will attest, there are plenty of physical costs associated with becoming a parent for the first time... then there are the financial costs, which can be just as bad. For the past few years, the cost of raising a child in Australia has hovered around the $400,000 mark - pretty much the average mortgage in Sydney. No wonder the Australian birthrate is on the decline! And with children staying at home longer, the costs of raising a family are dragging on and on.

Each stage of your child's life is unique, and comes with its own financial burdens, but if you are realistic about your financial situation, there are ways to save money and ease the economic strain of parenthood.

Baby essentials
The main cost of raising an infant up until the age of three is all the stuff that isn't even a blip on a childless couples' radar: change table, stroller, high chair, cradle - all the baby stuff you suddenly discover you cannot live without. While it is natural to want the best for your baby, you can save a fortune by opting for pre-loved baby equipment. There is always a glut of second-hand baby essentials out there and most parents, once their children are older, cannot wait to declutter and give away their old baby things. And if it must be new, keep it simple. Baby does not know the difference between a basic IKEA highchair and a top-of-the-range one. And both are only going to end up covered in food... or worse!

With children between the ages of three and five, the biggest expense is childcare. There is no way of cutting corners when it comes to quality supervision of your children, but there is government assistance. The average cost of childcare is $8.50 an hour, but you can claim $4.30 of that as the Child Care Benefit, up to 50 hours ($215 per week). Before returning to work, sit down and crunch the numbers on the true cost of returning to work. Travel expenses, work clothes, bought lunches, childcare - all these things can add up, meaning, sometimes, being a stay-at-home parent with part-time work can be more financially (and emotionally) rewarding than rushing back to a full-time job. 

School of economics
Of course, the cost of your child's education is your decision. But whether you choose the local state school, a church school or the very best private school, you need to work out what you can truly afford. Also, what you are willing to sacrifice, both in terms of material possessions and in time spent away from your children working. If you opt for a private education for your children, remember the extra costs that come with swanky schools: overseas trips, pricey uniforms and costly extracurricular activities. But wherever your children go to school, it is time for you to start teaching them the true value of money. Once their circle of friends expands, they will start to experience the peer pressure associated with the latest must-have trends and gadgets. They need to understand how much effort goes into earning each dollar they want to spend. By giving them an insight into how the family budget works, they are less likely to put undue pressure upon it by demanding the latest gadgets. 

Family planning
Unfortunately, even once your children are old enough to support themselves, it does not mean they will. Due to high housing costs, children are staying home with mum and dad well into their 20s - regardless of whether they are working or in further education. But if you start your financial planning early, a lot of the fiscal pain can be removed from your child's progression into adulthood. 

The cost of a three-year degree is set to hit $50,000 by 2025 - a huge sum. But by creating a savings plan for your child when they are still young, you can ensure that your child doesn't finish their studies with a huge debt handing over them. 

There are lots of different types of savings accounts and ways to save - but many tie up your money for long periods of time, and at the moment term interest rates are at record lows. 

Alternatively, by talking to your trusted mortgage broker, you could arrange new finance on your home and use a mortgage offset account to save for your child's future instead. Your regular savings will help reduce your mortgage - earning a fat better return than currently offered by many savings accounts - and your money will always be on hand, should you need to make a sudden withdrawal. 

Becoming a parent is the most important step in a person's life. And with a little advance financial planning, family planning should be one of the most rewarding too - give or take the odd tantrum along the way. 

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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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