How to get a bargain when buying a new car

new-car-bargain

Have you been driving the same old bomb for donkey’s years? Then perhaps it’s time to improve your image with a new set of wheels!

If you’re worried about the cost of a new car, fear not! With the right kind of finance through mortgage brokers like us, and the right kind of knowledge about how to negotiate a great deal at the end of financial year car sales, you’ll be cruising in style in no time! Here are our 6 steps and tips for making the most of the End of Financial Year (EOFY) car sales.

6 Steps to buying a new car

Pre-arrange your finance

Before you begin shopping for a new car, it’s a good idea to talk to us about how you’ll pay for it. We can provide plenty of finance options besides standard car loans that could help you save money on interest and make your car more affordable. These may include a lease, a personal loan, or accessing the equity in your home. If you’re self-employed, we may be able to work with you and your accountant to find a way to save at tax time on your car purchase. And if the car is for commercial purposes, you may be able to claim a deduction up to the full price of the vehicle (up to $20,000, including GST) before June 30. So please talk to us about your options!

Pre-arranging finance will also help protect you from the hard-sell of dealership salespeople and to give you more negotiating power. Be wary of 0% finance deals, as the repayment terms are often too short for people to afford, and you may end up being shuffled into alternative finance with higher interest rates. Don’t be taken for a ride!

Do your research

Knowing the recommended retail price before you enter the car yard puts you in a better position to negotiate. Price the car online and be sure to approach at least three different dealerships to get a quote. It may work to your advantage to use the best quote to see if you can negotiate a better price from the next dealer you speak with. Researching the car you’re buying thoroughly will also allow you to negotiate with knowledge of the product and perhaps get some additional extras.

Test-drive prospective new cars

Now comes the fun part – test driving your potential new baby. Like speed-dating, you only have a limited amount of time to get to know one another, so make it count. Take the cars out for a spin in a variety of different traffic conditions, and preferably on different terrains.

Consider trading-in your old car

If you don’t need to keep your old car, you may be able to get a further discount by trading it in for the new one. Often however, you can get a better price for your old car if you sell it privately, so go online to do some research about what its worth before you decide to accept an offer from a dealership.

It’s ok to haggle

Car dealers expect people to drive a hard bargain, so don’t be embarrassed about a bit of negotiating. If you’re buying during the EOFY car sales, dealers often discount aggressively to clear stock and the increased competition to secure your business means you’re more likely to walk away with a better bargain if you haggle. Buying at the end of the day may also work in your favour, as dealers may be eager to lock in a final sale before home time.

Hit the road, Jack!

Once you’ve signed all the paperwork, don’t forget to make sure your insurance is in place before you drive out of the dealership. We can help with this too. We hope these tips come in handy when buying your new car. Remember, we can find you car finance with terms that suit your needs and budget. We’ll organise pre-approval, giving you leverage during the negotiation process, and explain your options. Happy car hunting!

Why invest in commercial property?

brisbane-city-view

 

Whether you’re a seasoned investor looking for a new opportunity, or you’re after other ways to get your foot on the property ladder, a commercial property investment may be worth considering.

In this article, we explore the reasons why people venture into commercial property investing, and some of the areas to be aware of. And if you do decide to go down the commercial route, we can hook you up with an investment loan that suits your situation and objectives!

What is commercial property?

“Commercial property” tends to conjure up images of dusty industrial warehouses, but it’s a general term that covers all kinds of property that isn’t residential, or is used for some kind of business purpose. That includes everything from offices and retail outlets, to industrial sites and doctor’s surgeries. It can even include car parks!

The benefits of investing in commercial property

Attractive yields

If your focus is on generating income from rents, investing in commercial property may be the way to go. Commercial properties typically return a much higher rental yield than residential properties – usually upwards of 7% return. In comparison, the average residential rental yield across Australia’s capital cities fell to 3.2% in February 2017. (Rental yield percentages are calculated on the amount of rent compared to the cost of the property).

In addition, the costs of owning and managing a commercial property are usually lower, because most of these costs are covered by the tenant.

Potential for targeting growth areas

Commercial property investment often provides the opportunity to capitalise on growth areas, both in terms of location and the business economy. For example, a recent report by Deloitte identified that our future business economy is likely to expand rapidly in the areas of communications technology, hospitals and a wide variety of other health industries, food processing, private schooling and education. Hospitality and tourism are other areas that traditionally enjoy steady growth.

What to watch when investing in commercial property

Potentially lower rates of capital growth

While commercial property often provides more attractive rental yields than residential property, the capital growth potential is often not as strong because the land value of commercial premises is usually not as high. This is not always the case, so if you do your research carefully, you may be able to locate a commercial property investment in a growth location. Often it’s the popular shopping and holiday destinations that provide good capital growth potential for commercial property purchases, but these locations can be expensive and difficult to secure, so do your homework.

Associated costs

Goods and services tax (GST) may apply when you buy a commercial property, so you need to factor in an extra 10% of the purchase price when you buy. Properties used in the running of a business are also subject to capital gains tax when you sell.

Additionally, some lenders require a higher deposit for a commercial property investment – 30% instead of the usual 20% recommended for a residential property purchase. But this requirement differs from lender to lender and often depends on the value of the property you want to purchase. To find out more about how much deposit you may require, call us for a chat and we’ll be happy to help you crunch the numbers.

How we can help

If you decide to invest in commercial property, it’s important to have professional advice from your mortgage and finance broker and check with your accountant about the tax implications before you begin. We’re here to help you structure your loan the right way and do all the legwork to help you obtain finance to suit your current financial circumstances and future goals. There’s so much more to know and understand if you’re interested in buying a commercial property, so please get in touch today!

Sources: www.corelogic.com.au/resources, www2.deloitte.com/content/, www.ato.gov.au/Business/GST/

Why it pays to refinance an unhealthy home loan

Today’s mortgage market is extremely competitive. With so many new deals and loan features constantly becoming available, it makes sense financially to regularly give your home loan a health check. That way, you’ll be confident your mortgage is satisfying your needs and living up to expectations.

If you do suspect your home loan is in bad shape, don’t worry, we’re here to help. We’ll perform a home loan check-up for you and find you a healthy alternative if necessary. Here’s why refinancing every 2 to 4 years may be just what the doctor ordered.

Circumstances change

Over time, your financial situation may change and a mortgage that was a healthy choice several years ago, may be ailing today. It might lack the features and flexibility you need, or you may be paying for features you’re not using. Perhaps you’d like to access the equity in your property to renovate or invest, or could benefit from refinancing to consolidate multiple debts into your home loan to save on interest. You may have changed jobs and have more or less disposable income. Refinancing at least every 2 to 4 years gives you the peace of mind of knowing your finances are on track and your home loan marries with your current financial circumstances and goals. Allow us to remedy this situation by prescribing a tailored home loan that works for you in the long-run!

New opportunities

The finance and mortgage industry is constantly evolving, with new deals, packages and home loan features continually becoming available. By shopping around every 2 to 4 years, you may find a more competitive interest rate that cuts your repayments and potentially saves you thousands – money that would otherwise have been lost in an inefficient loan. As your mortgage and finance broker, we’ll take a holistic approach to your home loan needs, and advise you about features such as offset accounts or redraw facilities that could help keep your finances in tip-top shape.

To grow your wealth

It pays to keep a healthy attitude toward your finances. Reviewing your mortgage regularly keeps you focused about where you’re at financially and where you’d like to be. It may open your eyes to new strategies to proactively build your wealth and expand your investment portfolio. Refinancing can also allow you to access the equity in your home to invest, renovate, go on holiday or use as you see fit.

If you suspect it might be time for your current home loan to meet its maker, please get in touch! We’ll give your home loan a thorough check-up – minus the stethoscope – and find you a healthier alternative if necessary. While we are specialists at what we do, there are no hefty consultation fees involved – your home loan health check is a free service. Call us, your helpful “mortgage medics”!