Following the Federal Budget, first home buyers now have until September to enjoy the full benefit of the Government’s First Home Owner Boost (FHOB).

First home buyers who sign contracts to purchase a newly built home between 14 October 2008 and 30 September 2009 are eligible for a one-off payment of $21,000 in terms of the FHOB scheme.

Those who purchase an existing home are eligible for a one-off payment of $14,000.

If you miss out on the September deadline but make your move before December 31 this year, you’ll be entitled to a much lower government grant of $14,000 for a newly built home and $10,500 for an existing home.

Thereafter the grant will revert to $7,000 for both newly built and established homes.

Take note though: following the recent State Budget, first home buyers buying homes worth more than $750,000 will not be eligible for the grant.

Come in and see us now if you need more information or would like to find out how you can take the first step to owning your own home.

That’s it folks – we hit the worst and things are going to get better now. 

Well, that’s one reasonable interpretation of the economic signals. Another seems to be that we may just stay as we are for a while longer till something spurs a lift.

Having narrowly escaped a technical recession thanks to the economy growing by just 0.4% there seems to be a more buoyant air especially with the banks, that’s if the five year fixed rate is anything to go by.

Most banks have the five year fixed rate at an average of about 7% which seems to be an enormous hike over the cash rate of 3.00%. 

This is giving the banks an unusually high premium on fixed rates and is certainly an indication that they’re not expecting further interest rate cuts and in fact exactly the opposite.

On the other hand Reserve Bank chief, Glen Stevens and some of the bank economists are still making noises about the possibility of interest rates having to be lowered further before they rise again.

One would presume they’re taking the view that if the economy doesn’t move through outside influences pulling it upwards, then it may have to cut interest rates a tad more to keep things moving.

Should that occur it’s obviously not expected to be a long term scenario if the premium on the fixed term rate is anything to go by.

All these reports are causing a great amount of ‘should we or shouldn’t we’ speculation as to whether it’s time to fix loans.

Right now, almost without exception clients are choosing to stick with variable rate loans, possibly believing that fixed rates have not reached levels which would justify a switch.

However, you may well see things differently. In the end it’s up to you to decide on when to fix.

What we can do, however, is take you through all the loan options available to you including looking at whether a fixed rate would suit your circumstances.

In any case, with interest rates this low, it’s wise to reassess your finances so come in for a chat with one of our consultants.

A recent announcement by the Australian Bureau of Statistics that loans to property investors increased by 9% in April, confirms our own experience which clearly indicates that investors are once again showing interest in the Perth property market.

So what has caused this renewed interest? The short answer? Right now we have the extremely unusual situation of affordable property prices and major falls in interest rates. At the same time rental vacancies in the Metro Area are at an extremely low 2.9% and the median weekly rental is steady at a healthy $360/week. More importantly, it’s now possible to achieve rental yields of 6%+ in some areas.

All this has brought into play an additional factor which motivates some investors particularly in today’s uncertain climate. In some cases investors can enjoy the benefits of positive gearing in addition to the advantages of the alternative strategy of negative gearing.

For the serious investor the above circumstances spell out one word – OPPORTUNITY. Some investors are holding back in the hope that property prices will fall further; others believe it’s time to move because there are signs that prices are turning.

Whatever your view, if you’re thinking of investing, now is the time to identify all your options. Give us a call and we’ll help you prepare for your future investment in property.

Have you ever wondered about how others get wealthy? Why some people are ‘lucky’ and wealth just seems to gravitate towards them?

Well, some people are lucky. And some people have wealth given to them. But of the very few who fall into this category there are even fewer who remain wealthy over time. 

The truth about financial success is that some simple rules need to be followed consistently. But what are these rules? And how do you learn them?

Are you struggling with all those debt burdens?

Lately we’ve received a lot of enquiries from clients asking whether we can help with consolidating their debts. In the last few years there has been an increase in the number of people struggling with their home loan payments because of the burdens of credit card bills, car loans and personal loans.

A quick fix seems to be to consolidate these debts into one. But this leads to an increased home loan and many people eventually seem to end up in the same position again within a couple of years.

Most people need a guiding hand when it comes to learning success with their finances. At 3D Home Loans we have been introducing clients to a program educating them in a clear and simple manner on how to take control of their money.

It’s a service comprising a series of plans and reports customised for each person’s specific circumstances. But it’s delivered by a finance professional who acts as a one-on-one guide through implementation of the plan, continuing with this guidance for at least two years.

The secret? A proven and tested process made for you!

The process has been tested and proven over a number of years. The end goal of the program is to achieve financial independence and this usually takes the form of completely paying out debt on a home loan.

Clients who embrace the program completely, pay their home loan off on average in 12 years and 8 months! Compare that to the standard 30 year term that all banks establish their loans for.

To find out more about how you can take control of your finances and reduce your home loan while maintaining your standard of living contact Eddie at 3D Home Loans. After all, doesn’t 12 years sound better than 30?

You don’t have to spend a fortune to treat yourself to the care you deserve.

In the Nutrimetics range you will find Skincare, Bodycare and Homecare products, Make Up and Fragrances. Find out more about the Nutrimetics range by visiting their website at www.nutrimetics.com.au/kc or better still call one of the consultants below for a free brochure full of hot offers and start saving today! 

Helena Hubena
Mob: 0413 137 997

Karla Chvala
Mob: 0421 018 791

First home buyers
Only 2 months left in which to claim the increased grant!

You only have until June 30 to take advantage of the Government’s major boost to the First Home Owner Grant.

Although market participants would all prefer it to be extended, there is no indication that the First Home Owner Boost (FHOB) will continue in its present form thereafter. This means you should act now to ensure you can claim the maximum benefit.

Fortunately, as a first home buyer there are a number of other factors that could help make your entry into home ownership that little bit easier. Interest rates are falling and house prices are lower.

First home buyers who sign contracts to purchase a newly built home between 14 October 2008 and 30 June 2009 are now be eligible for a one off payment of $21,000 in terms of the FHOB scheme.

First home buyers who sign contracts to purchase an existing home between 14 October 2008 and 30 June 2009 will be eligible for a one off payment of $14,000.

After a slow start first home buyers are now making a strong impact on the housing market in Australia as they take advantage of the FHOB.

Come in and see us now if you need more information or would like to find out how you can take the first step to owning your own home.

Something new and exciting in leisure and entertainment for the whole family is opening its doors in Malaga in March.

The impressive Perth Ice Arena will have the latest sound system and LASER light shows for its planned disco sessions, which are designed to give local young adults an opportunity to have fun in a healthy environment.

The ice rink will also house the West Coast Ice Hockey clubs and will feature figure skating. Other special sessions will include PlayTime groups for younger children to play with snow on the ice.

During construction of the arena we at 3D Home Loans have been actively discussing sponsorship opportunities with the rink’s owners and we were very excited about their grand opening in early March 2009.

The address of the Perth Ice Arena is 708 Marshall Road, Malaga. More information on the ice rink can be found at: http://www.perthicearena.com/

Our readers certainly have a sense of humour as Eddie discovered recently while on his Christmas break at Coral Bay.

As you may recall from our last issue Eddie was recently stranded at a washed away river crossing while visiting a remote volcano in Vanuatu.

A single shovel was all the recovery gear they could find amongst the six 4WDs in the group!

Given our readers’ sense of humour, Eddie shouldn’t have been too surprised when on returning to town after swimming with turtles and manta rays in Coral Bay, he found more than one mobile message enquiring whether this time he was ’stuck up the creek without a shovel’.

What you should do to get the maximum benefit from falling interest rates.

It only takes a look at what has happened to interest rates in the past few months to get a clear indication of why we are being approached for loans by more and more first homeowners and upgraders.

Of course falling property prices and the First Home Owner Grant are also playing a role but consider what has happened with interest rates. In February the Reserve Bank of Australia reduced the cash rate to 3.25%. As a result variable rates dropped to about 5%.

The net effect? Those with a loan of $350,000 are now paying about $1000/month less then they were before the cycle of interest rate cuts started some six months ago.

That is quite a dramatic effect, isn’t it? If you are planning to buy, this turnaround makes home ownership a lot more affordable.

On the other hand, if you already have a variable loan you should be putting as much additional disposable money as possible into paying off your variable loan. This is a highly effective way of dramatically reducing the term of your loan.

If you are not happy with your current loan arrangements or would like to find out if right now there is something better out there for you, give us a call.

In my view
Market shows signs of movement

Eddie Jaworski
Director/Finance Broker
0419 916 991
eddie@3dhomeloans.com.au

Welcome to this the first issue of our newsletter for 2009.

In the past few weeks you may have noticed that real estate signs in your area are increasingly displaying SOLD and UNDER OFFER stickers.
According to reports, attendances at home opens are up and in first home buyer areas there is a noticeable increase in activity.
According to the Australian Bureau of Statistics first home buyers took up some 25.4% of the home loans issued in Australia in December 2008 – the highest since 2001!

It’s, however, not just first home buyers who were responsible for most of the demand.
What is clearly indicated is that people are beginning to realise that things are not as bad as portrayed in the press. Employment is still high, house prices are down to affordable levels and interest rates have dropped dramatically. As a result they have taken a conscious decision to just get on with it.
Certainly, the dramatic interest rate fall over the past six months has generated excitement among buyers, as has the decline in house prices. But that doesn’t mean you should sign up to a loan package without understanding all the implications.
Now more than ever you need the advice of a specialist finance broker who can tell you which loan is best for you, taking into account not just the interest rate but also the many other critical factors that can make the difference between a ‘good’ and ‘bad’ loan.

So, come in for an obligation free consultation before you sign on any dotted line.