It’s no secret that Australians love to travel. The thing is, we also love to own our own home. Can you do both? It turns out most people can!

There’s this myth that once you take out a home loan you’re locked down for good. Or at least for the foreseeable future.

It’s no doubt a major deterrent for young people embarking on home ownership.

But it turns out that’s simply not true: where there’s a will, there’s a way.

Research just out from InsureandGo shows most people (55%) go on at least one overseas holiday within three years of buying their home.

More interesting still, 21% of home owners travel overseas within their first year of buying a home, and 39% within two years.

Then there’s the 10% who are super keen to scratch that travel bug itch and go jet-setting within six months of buying a home.

How do they make it work?

Cheap airfares are a good start.

Get ahead of the pack and receive free email notifications when a jaw-dropping deal is going through services such as I Know the Pilot and Scott’s Cheap Flights.

They’ll send you an email alert when they’ve found a cheap airfare that matches any airports you’d like to depart from and arrive at.

Don’t forget to see Australia!

Rest assured that if the budget is tight, there’s always Australia to explore.

Don’t forget that 8.8 million people travel from all across the world to visit our beautiful country each year.

The first few years of your mortgage may serve as the perfect chance to join them in exploring our vast continent.

That’s exactly what half of all new home owners do within the first year of taking out a mortgage, according to the InsureandGo report.

You don’t have to fly across the country and fork out hundreds of dollars, either. Every state has its own beautiful coastline and national parks, many of which are situated near affordable campgrounds.

Make savings on your home loan to build up travel dollars

Becoming a house-owner these days doesn’t mean you have to become house-bound.

Sure, meeting your mortgage repayments will always come first. But it’s also important to give yourself and your family a much needed holiday every now and then.

By clever budgeting, smart savings on your home loan, good travel deals, and a dose of discipline, you don’t have to sacrifice travel for home ownership.

To find out more about budgeting with a mortgage and to ensure you have the best home loan, get in touch.    We’d love to help out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Every Christmas almost half of the Australian population decides to go swimming in credit card debt to get through the festive season. But there’s two big reasons why you shouldn’t do that this year.

Bad news: new data from St George bank shows that 46% of Australians haven’t saved up for Christmas gifts and need to use their credit card at the checkout.

Worse still, 1 in 3 people say they need to rely on their credit cards to survive.

While this may have worked for some families in the past, there are two new factors this year that should make them think twice about doing so.

Factor #1: New credit card rules from January 1

As of January 1, banks and credit providers will be required to check your debt-servicing capacity more thoroughly before issuing a credit card.

Essentially, credit providers will only approve your application if they’re satisfied you can repay the card’s credit limit, at its interest rate, within three years.

If not, you’ll be denied a credit card, or offered a lower limit.

In years gone by, credit card providers have gone on advertising blitzes for interest-free credit card deals in January and February.

So families who have made it an annual tradition to take up these offers will be due for a shock – they might not be able to transfer their full debt this time around.

This will either leave them with two credit cards to pay off, or worse still, one big debt already accruing interest.

Factor #2: It will be harder to get a home loan

It’s getting harder and harder to obtain a home loan due to the banking royal commission lending crackdown.

Lenders are required to ensure that the loan is not unsuitable for you,  so you need to get your spending under control before having finance approved.

They’re not just checking the last month or so, either.  Lenders will trawl through your accounts for the past several months for any spending anomalies.

If a lender sees that you’ve thrown caution to the wind with your credit card over Christmas you might just be put on their naughty list and denied finance.

Essentially, that could hamper your chances of obtaining finance for a home loan until about April next year.

How we can help

It’s believed that the stricter rules on credit cards will have a knock-on effect on applications for all types of credit, according to some experts.

So if you’ve got expensive debt on your credit cards or personal loans,  we would like help consolidating it into your home loan.

And if you’re not quite in credit card debt just yet, but the forecast isn’t looking so great, then get in touch.

We have plenty of great budgeting techniques we’d love to share with you to help ensure you have both a Merry Christmas – and a happy, credit card debt-free New Year!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Buying a house by the sea in a little known coastal town is no longer reserved for retirees. New research shows that those flocking to coastal towns are now predominately young families.

Most of us have dreamt of the days when we’ll one day be able to afford a house nestled down by the sea in our very own Summer Bay (minus the drama!).

However, joint university research shows that young families are turning their backs on the inner-city rat race in droves and pursuing a more affordable lifestyle by the sea.

Really? Show me the data!

The research shows that the sea change phenomenon, once largely the domain of retirees, now mainly involves Millennials, including young families.

Using ABS 2016 Census data, researchers have found the people most likely to move to Tasmania were 25 to 29 years (14.0% of all movers), followed by those aged 20 to 24 (11.8%) and then 30 to 34 (10.3%).

Similarly, relocating to the Sunbelt Coast (the region around Byron Bay in northern New South Wales) was most popular among 25 to 29 year olds (12.9%), 20 to 24 (10.5%) and 30 to 34 (10.2%).

Most people are moving to these areas from Melbourne, regional Queensland, Sydney and regional New South Wales.

So why are people moving?

There actually isn’t a single clear driver.

Better housing affordability, a smaller mortgage debt to pay off, and the desire to avoid stress and being overworked are some of the main reasons.

Other important factors include a perceived risk of living in the city, the desire to bring up children in a simpler environment, shorter commute time and, of course, the obvious reason – living in a beautiful location.

Workforce trends – towards more freelance, remote and consultant roles – may also be playing a part.

In fact, research shows that up to 4.1 million Australians, or 32% of the workforce, freelanced between 2014-15. This means many Aussies can set up shop and work from anywhere they wish – including idyllic little coastal towns.

Keen to make the move?

If so, you might not want to leave it too long.

Real estate experts are already predicting Tasmania’s recent housing boom will shift outside of Hobart and spread to areas such as the north-west coast.

So if you and your family are looking to quit the rat race and find your own little corner of Aussie paradise, get in touch.

We’d love to help you source a great home loan and make your sea change dream become a reality.

Just call us

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

They grow up so fast. One minute they’re nagging you for a dollhouse, the next, it’s for help buying a two bedroom unit in an up-and-coming suburb. If you always find it hard to say ‘no’ to your kids, here’s how to say ‘yes’ the right way.

You’ve probably heard your children complain about how hard it is to crack into today’s property market.

And smashed-avocado shenanigans aside, they do have a point. It is tougher nowadays.

With the property market constantly on the up-and-up, reaching that 10% to 20% deposit can feel like a mirage for your child.

The good news is that you can help them obtain that slightly out-of-reach home loan by using the equity in your property.

How it works

Banks find it risky to lend to borrowers who have an unstable job or low deposit. But they do allow seemingly more-reliable immediate family members to guarantee a home loan.

Guarantor loans have huge benefits for your children, including:

No deposit required: If guaranteed against a parent’s property equity, your child may be entitled to borrow 100% to 110% of the purchase price of a property. That means little or no deposit is required. Instead, your child can focus their savings on white goods and repayments.

No Lenders Mortgage Insurance (LMI): Your child will likely not need to get LMI because the equity is usually enough of a guarantee to protect the lender against losses.

Things parents should keep in mind

Sounds great, right? But it’s not entirely without its risks. Here’s what you as a parent need to keep in mind:

Safeguard your credit report: Be sure that you can honour the repayments in case things go awry and your child is unable to pay. You should be positive that they will uphold their end of the bargain, but also prepare for the unexpected.

Financial risk versus emotional benefits: Going guarantor makes you financially responsible if your child defaults on payments. The emotional benefits, however, can outweigh the risk.

Impacts on your borrowing capacity: Future credit providers will take into account the guaranteed loan. They will assess your borrowing capacity based on it, and whether or not you are an active participator in the repayments of your child’s mortgage.

How we can help

We understand that when it comes to your children, it can be near-impossible to take your emotions out of decision making. That’s where we come in.

We can help you calculate whether or not you have the equity to make this work, and assess your child’s financial capabilities to see if they’re in a position to be making repayments.

We’ll also help you understand your legal liability as a guarantor before helping you make the big decision.    So give us a call today on 1300 360 999.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The essential apartment gardening tool kit:

Indoor watering can

This is number one on the list of essential gardening tools. Choose a watering can that’s lightweight with a well-designed spout to make watering easy and to minimise spillage. A 1.5L is a good size to begin with if you have small- to medium-sized plants. If you have bigger plants, you can go up a size to make your watering routine easier.

Spray bottle

A spray bottle is great for misting indoor plants that benefit from humidity, such as tropical plants that thrive indoors. A good spray mist will temporarily increase the humidity levels around the plant and provide surface moisture for the foliage. Buy a plastic spray bottle; they’re inexpensive, no-fuss, provide even, strong coverage and tend not to drip at the nozzle. A spray bottle also comes in handy for applying natural, liquid sprays if you’re dealing with plant pests – but always mark your bottles and have separate ones for different purposes around the house.

Liquid fertiliser

Your indoor plants will need a seasonal feed to keep them vibrant and promote new growth. A great idea is to use a seaweed-based liquid fertiliser, which can be diluted straight into a watering can using the ratios recommended on the label. All fertilisers tend to be on the stinky side, so make sure you keep the container sealed and tucked away safely in a cupboard between uses.

Garden trowel or fork

One thing to invest in is a good-quality garden trowel or fork. For the indoors, opt for hand-sized implements. A hand trowel comes in particularly handy when you’re repotting. Alternatively, a small garden fork will help you to even out the top soil in your pots between waterings, check on soil moisture levels from time to time and gently aerate the soil – all good things for plant health.

Florist scissors

There’s no need for heavy duty secateurs indoors. Florist scissors will do the trick. They’re basically a tough pair of scissors shaped for a comfortable grip with blades intended for floral work, but equally up to the task of snipping off dead and damaged leaves or pruning back your indoor plants.

Gloves

Gardening gloves are by no means an essential gardening tool, but they’re great if you don’t enjoy getting dirt under your fingernails. They’ll help with everything from the dirty work of repotting to safely handling plants with spines.

Dust pan & broom

Even apartment gardening involves a bit of dirt, so be prepared to clean up after yourself with a small dust pan and broom. It will be similarly useful for sweeping up if a pot plant is accidentally knocked, or there’s a bit of leaf drop.

Bottle opener

It’s certainly not essential, yet worthwhile so you can sit back and celebrate your lush-looking indoor or balcony garden.

Happy gardening green thumbs!

For more lifestyle articles and tips visit our blog.

Content: Fabian Capomolla