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Home Loans and Leveraging Equity

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Videos

Ask an Adviser – What is Debt Recycling?

What is debt recycling? It sounds a bit like throwing out your old debt and taking on new debt, right? Exactly!

*Todd Burrows In a nutshell, debt recycling is simply borrowing money to invest but with a twist. The twist is that it’s a system that allows you to replace your ‘bad debt’ with ‘good debt’. ‘Good debt’ and ‘bad debt’ are terms coined by Robert Kiyosaki, author of the bestselling finance book, ‘Rich Dad Poor Dad’.... view article
January 19th 2022

Insights

Understanding how loans work

It is useful to understand how loan repayments work. It’s not something that is uncommon too, at times, feel intimidated by. Loans and the ins and outs of understanding formulas and keywords are simpler than you think.

  Factors for loans with interest rates from 6.5% to 9% over 5 year to 30 year terms For example, if you had a loan of $100,000 at 7% and paid it back at   $899   a month, the loan would be paid off in 15 years (100 x 8.99). The factors illustrate the way compound interest works.... view article
May 18th 2022

Ask an Adviser – Handy Hints for First Home Buyers

As part of our ongoing ‘Ask and Adviser’ series, we chat with Melbourne-based Financial Planner, Goran Velevski.

Goran has a decade of experience in the financial industry and has been with Invest Blue since 2019. His areas of speciality are wealth creation, wealth protection and retirement planning. Goran has a passion for improving the financial well-being of his clients and loves helping clients and their families live their best possible lives. Here,... view article
March 3rd 2022

Boost your retirement income using your home equity

Asset rich and income poor is the dilemma faced by many retirees. But there may be opportunities to boost your income in retirement by tapping into your biggest asset – your home.

With property prices booming, many retirees are finding that the home they have lived in for decades is worth a small fortune, but for various reasons, they don’t wish to sell or downsize. What many may not realise is that you can have your cake and eat it too. Or, in this case, convert part... view article
November 4th 2021

Debt Recycling. How does it work, and can it help you get ahead?

Debt recycling is a strategy that aims to help you pay off your non-deductable debt (e.g., your existing home loan) as quickly as possible, while also building up your wealth in a tax-effective way over the longer term. But how does this strategy work, and can it help you get ahead?

For more information on good debt, bad debt, debt recycling and what does it all mean, click here.   How does the Strategy work? Traditional debt management and wealth creation strategies focus on paying off the home loan as quickly as possible by increasing the frequency and amount of the repayments. Once the home is repaid the... view article
June 18th 2021

Negative Vs Positive Geared Investment Properties

Gearing is the process of using borrowed money to make investments. The income from investments can either be positively geared or negatively geared, each has its own advantages and disadvantages.

When it comes to choosing any investment your timeline, goals, overall financial position, and risk tolerance should always be front of mind. Once you understand what your goals and motives are, considerations such as choosing a negative or positive geared property can then be considered.   If you would like to discuss your options and how... view article
November 27th 2020

Expenses to Consider When Moving Out of Home

Moving out of home for the first time is a huge milestone in life. Finding a sense of freedom and independence is an exciting time however like any milestone, it is one you should prepare and plan for financially.

Costs to consider when moving out The one-off expenses that are top of mind are not the only ones that you will incur when you move out of the home. Those who start living away from home for the first time may also find a flurry of other unanticipated expenses, especially during the first few... view article
November 18th 2020

Living Off Investment Properties in Retirement

The Australian dream of owning a home still stands strong. For many, home ownership forms part of their retirement plan and can even provide or build part of an income to live off once retired.

There are several investment options that can form part of your retirement plan; these may include your superannuation, stocks, shares, bonds, cash and properties. Investing in properties has been a popular choice for Australians over the decades and is an effective way to diversify your retirement portfolio and reduce the associated risks. On one... view article
September 15th 2020

First Home Buyers on the Rise in 2020

Entering the property for the first time has been increasingly more difficult over the years due to increasing pricing and affordability of the property market however 2020 has presented some unique opportunities that first home buyers have been quick to take advantage of.

First Home Buyers Uprising in 2020 Before the coronavirus outbreak, the property prices in metro cities, including Sydney and Melbourne, were up 12%-14% year-over-year making it increasingly difficult each year for those wanting to enter the market. The property market in Australia, like other aspects of the economy, is expected to be impacted by the... view article
September 10th 2020

Can home equity save you during a difficult financial period?

There are many situations that may lead you experience a difficult financial period, from redundancies, reduced income, inability to work due illness and of course by the current Coronavirus pandemic. When facing financial difficulty, you may find there are more options to consider than you originally thought, such as potentially accessing your home equity.

Home equity is the difference between the value of your property and debt owing on your property. There are various ways you may be able to use your home equity to your advantage, such as using your home equity to buy a second home or in this situation using it to get through a... view article
July 16th 2020

Using Equity to Buy a Second Home

If you own a home, you may be able to utilise the equity on your home loan to purchase a second property. Given current all-time low interest rates, now may be a good time to consider this option.

Many Australians aim to pay off their mortgage sooner so that they can be debt-free. However, many haven't considered the hidden potential of equity in their home loan. Tapping into this hidden potential may allow you to purchase a second property (or other investment) which could generate an income.   In this article we cover: ... view article
July 10th 2020

First Homeowners – current benefits and what to be aware of before sealing the deal

With the cash rate is at an all-time low of 0.25% and the announcement of new government incentives like the HomeBuilder program combined with a dip in the property market, First Home owners are jumping at the opportunity to get their foot into the door of their first home. However, before making the jump there are some things first homeowners should consider and be aware of.

The Reserve Bank of Australia dropped the cash rate to 0.25% in March 2020. The decision was taken to keep the Australian economy afloat in times of a looming recession. The low-interest rates ensure that borrowing remains affordable, and the economy can recover as soon as possible.   Impact of Low-Interest Rates on the Property Market... view article
June 16th 2020

Outlook on interest rates

The economy of almost all countries, including Australia, is undergoing an unprecedented downturn as a result of the coronavirus pandemic. In these times of economic crisis, interest rates play a critical role in determining the future of a country’s economy and its speed to recovery.

Interest rates control the price of borrowed money when interest rates are low people are more likely to spend. This increases the demand for production, jobs and as a result, help stimulate more activity in the economy. They form a significant part of the government’s monetary policy and are determined by the Reserve Bank... view article
June 10th 2020

Ways to reduce your home loan during COVID-19

Considering deferring your home loan during COVID-19? What are the pros and cons of this option and what should be considered before taking up this offer? What else might be available?

We are a nation now facing financial hardship with three million Australians predicted to lose their jobs during the coronavirus outbreak and unemployment rates soar to the highest since 1932. If you are one of these three million, it could have you questioning how you're going to get by and what options are available... view article
March 27th 2020

Lowest interest rates yet – what does this mean and how you can make the most of it?

Interest rates in Australia are at an all-time low of 0.25%. What does that mean for you and how can you make the most of it?

  Interest rates in Australia are at an all-time low of 0.25%. What does this mean for you and how can you make the most of it? (iv)   Rates are at an all-time low, what does this mean? If you’re looking to refinance, take out a new loan or buy your first property, there has never been... view article
March 9th 2020

Lending advisers vs DIY loans: Can you protect your wealth?

What is a lending adviser? Should you work with a lending adviser or DIY your loan? What are the Benefits of working with a lending adviser?

The world of lending is vast and, at times, feels confusing. With countless loan products available, it can be hard to fathom exactly what deal works out the cheapest for you - and even harder to understand which will suit you best in the long term. Whether funding a home or investment or refinancing to... view article
March 15th 2019

When refinancing makes sense

Why and when you should consider refinancing your loan

Regardless of loan type, refinancing makes sense when it is of benefit to your financial situation, lifestyle, or both. In the past, people took out loans and continued with it until they had paid it off. Today people review their loans and tend to refinance more frequently, with the average Australian home loan spanning just... view article
June 6th 2018

10 ways to save on your mortgage debt

10 ways to save money on your mortgage debt

Mortgages are a double-edged sword. While they're the best way to secure potentially the most valuable asset you'll own, they can be very expensive and slow down your wealth creation. In part, this is because too few of us are utilising the best ways to manage our mortgages. Fortunately, there are a number of easy... view article
May 8th 2018

How does your mortgage stack up to others?

When was the last time you reviewed your home loan?

No two mortgages will suit the same person. In fact, it's possible that your own mortgage could become unsuitable for your needs just as time passes. As your life situation changes, so too do your finances, interest rates and priorities. High levels of debt can be a serious issue for anyone vulnerable to serviceability... view article
April 6th 2018

Should I lend money to my family?

Things to consider when lending money to loved ones.

You’re probably fairly used to helping your family out with a little extra cash here and there. Whether it’s pocket money for doing chores, or money to pay phone bills, go see a movie or buy clothes, for example. But what happens when they put their hands out for help to buy the big-ticket items?... view article
March 15th 2018

Don’t believe the naysayers-millennial homeownership is possible!

Are you wondering whether homeownership is possible for millennials? While Gen Y faces some challenges, they can succeed by planning for the future.

Has the Australian property bubble burst in 2017? Is the Great Australian Dream becoming a nightmare? With recent doomsday headlines like these, you could be forgiven for wondering if homeownership is possible for millennials. But buying your first home can be a reality. Effective planning for the future - combined with our tips for millennial... view article
November 2nd 2017

Superannuation vs Mortgage

Is boosting your super or paying off a home loan more important?

It's an age-old question for anyone who is financially planning for the future: should I pay down my debts or add to my savings? When you're choosing between paying off a mortgage and boosting your super, the stakes are even higher. Throw in the fact that you may be currently setting up for retirement (as... view article
September 19th 2017

Your home could be your greatest asset – but not in the way you think

Utilising your mortgage to maximise investment potential

Many of us have grown up hearing the old adage “your home is your greatest asset”. For the majority of us it is true that the value of our home does make it one of the most expensive things we own. Some may not consider the typical family home as an asset – if it’s... view article
August 30th 2017

Why buying a house before the age of 30 is a terrible idea…..NOT!

Stop hesitating and make the most of your 20s – start your journey to buying your own home.

To all those Gen Yers and Millennials out there, learn from those of us from a different generation who wish we’d entered the property market sooner. Mum & Dad got it wrong. We should have saved more and spent less on nights out and dodgy 80s fashion. We don’t regret those fabulous backpacking experiences when... view article
August 25th 2017

Can refinancing my home loan save me money?

By replacing your existing loan with a new one, you could take advantage of a better deal.

Even if you secured a competitive package when you first took out your home loan, it’s worth reviewing each yearI to ensure the interest rates, fees and features continue to meet your needs. With interest rates also at an all-time low in Australiaii, now may be an opportune time to refinance as you may be... view article
May 24th 2017

is rentvesting the new normal for young property buyers?

Owning a property in today's real estate market environment is an enviable position to be in.

Prices continue to rise across most of the country's capital cities, with the latest CoreLogic data showing values climbed 12.9 per cent year on year nationally in March. You may be surprised to hear, therefore, that millennials appear to be leading the charge regarding real estate investment, despite these rising prices. ING Direct figures showed that... view article
May 9th 2017

9 tips for first home buyers

There's a lot to get your head around as a first home buyer, particularly when it comes to saving money in the short and long term.

Did you know the majority of first home buyers in Australia are taking just under four years to save for a deposit on a home loan1? If you’re thinking about, or aren’t far away from putting some money down on your first home, we look at some of the statistics and major pointers you’ll want... view article
March 28th 2017

Client Story: The dream family home

Four-bedroom home just a stone's throw from the beach... What more could you want!

Living close to the coast was always a dream for Paul and Candice Butcher. With the help of Coffs Harbour Financial Planner Brendan Biddle, this dream was turned into a reality and the Butcher family were able to move into their brand new house just before Christmas last year. "At the moment, we’ve got what... view article
April 4th 2016