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How to budget for Christmas.

Possibly one of the most expensive times of the year! It’s easy to get caught up in the festivities of the holiday season, spending tons of money buying gifts, decorations, wrapping supplies, food, alcohol, and we cannot forget a new outfit for every social event!

This leaves us kicking off the new year with empty bank accounts and the dreaded credit card bill or Afterpay reminders!

By planning ahead, budgeting and making a list, the Christmas spending hangover can be easily avoided. Keep reading to find out how!

Planning Ahead

To avoid getting to the end of the year and having to find money to pay for gifts, food, alcohol etc we recommend allocating a portion of your weekly salary into a Christmas saving account.

For example, by allocating $50 per week by December you will have a total of $2,400. Not only will this mean you’re not digging into your savings to pay for everything, but it also allows you to create a budget that you can easily stick to over the festive season.

Budgeting

With the money you have saved for Christmas throughout the year you can now use that total figure to create a budget. By allocating so much money to each category this will prevent you from going crazy when you start to do your shopping.

For example, out of the $2,400 you can allocate $1,500 to presents, $500 to food, $300 to alcohol and $100 to decorations.

Make a list!

Now that you’ve set your budget for each category, its time to make your lists before heading out to the shops! We suggest creating a list for each category, so think a list for gifts, food, alcohol, decorations etc.

Gifts:
Firstly list everyone you need to buy presents for. From this list you can then divide up the total budget for gifts amongst everyone.

For example, maybe you just want to spend $25 each of your nieces and nephews.

Food:
You may already create a grocery list each week, so this will be no different. Initially write down all the ingredients you will need to make your Christmas dishes. Then check your pantry, fridge, and freezer to see what you’ve already got – we like to call this shopping from the kitchen. Finally, whatever remains on your list is what you will need to either order online or go instore and purchase.

Another top tip for groceries around this time of year, keep an eye out for when things are on special to save yourself a few dollars here and there.

Alcohol:
Like groceries, check out what alcohol you may already have that will get you through the silly season and from there create your list of what else you need to grab. It’s always best to keep track of the specials to save yourself a few dollars on that carton of beer or bottle of scotch.

Decorations:

You may not need new decorations this year and you can allocate that $100 to somewhere else but it’s always nice to have a little bit of money set aside in case the lights have blown, or maybe the inflatable Santa has a hole in it, you can easily replace things with this little bit of cash set aside.

By budgeting and planning for the festive season in advance, we can assure that your festive season will bring on plenty more joy and memories for a lifetime, without the anxiety of money in the back of your head.

How to finance a knockdown rebuild

Have you been considering knocking down your current home and starting fresh with a brand-new home build, but have been wondering how you can finance this project – especially if you’re already paying a mortgage on current home?

No need to stew over your decision any longer, we have gone ahead and put together everything you need to know from a financing aspect, and how our team at MyChoice Home Loans can assist you in organising your funds needed to start constructing your brand-new dream home.

How much does a knockdown rebuild cost?

To determine how much you may need to borrow to finance you’re rebuild you first need to determine how much this total project may cost you. This can be a bit tricky – our mortgage consultants recommend firstly to discover how much the demolition of your current home will cost, which can vary depending on the complexity of the knock down (i.e. access to the block, presence of asbestos).

Secondly, to determine the actual cost of the re-build. Depending on the size and features you wish to include in your new home’s design this can vary quite a bit, especially when you take into account the final fixtures and external finishes to complete your new home. With all our builder brands offering a large range of new-home designs from 2-bedroom homes and upwards you won’t be short for choice – meaning that you can still have a beautiful brand-new home without blowing your budget.

Finally, something you may not be aware of. You can potentially save quite a bit of money by knocking down and rebuilding over purchasing a new established home as you won’t be having to fork out an extra cost towards stamp duty. With this money you can use it to upgrade the selections at your MyChoice Design Studio appointment or furnish your home.

Can I demolish my home if I have a mortgage?

You sure can! With the assistance of financing from one of our expert mortgage consultants using one of the options listed below. We also recommend getting an evaluation on your current home and land as it is possible to loan (via a building and construction loan) up to 95% of the property value.

Use the equity of your existing land

Even if you want to demolish your existing home, it is still worth something! Your equity is calculated by looking at how much of your home you own, that is the difference between its market value with or without a dwelling attached to the land, and how much you owe on the mortgage.

Redraw on your current home loan

Does your current home loan provider offer a redraw facility? If so, you can use the redraw available in your current loan to potentially cover the cost of the knock down rebuild. If not, read below to see how we can help.

Refinance your home loan

Finally, refinancing your home loan to fund your knockdown rebuild is possible. We will work alongside you to review your current home loan and recommend additional options to refinance into something that better suits your requirements. By refinancing your loan, you will also be able to enjoy the benefits of greater flexibility and a wide range of features that may have not been previously available to you with your current lender.

Interested to find out more? Contact a member of our team today for a FREE financial health check!

MyChoice Pays!

Watch your dream home come to life and we’ll cover the interest on your mortgage whilst you build, saving you up to $12,000!*

MyChoice Home Loans makes it easier than ever to access the ultimate construction loan product, offering financial freedom and the opportunity to get ahead of the game, allowing you to start paying down your loan sooner (or saving for all of the new furniture and décor for your new home), while still living your life exactly the way you want to.

So, what exactly is MyChoice Pays you ask?

The MyChoice Pays product is a construction home loan where the borrower is not required to pay the interest on the construction portion of their home loan whilst the property us under construction. The interest is instead paid on your behalf.

The maximum interest rate benefit is calculated in advance and is capped at a maximum $12,000. The loan is usually split into two portions, with the construction loan separated from any other borrowings to ensure that the interest rate benefit is only applied to the building portion of the loan.

And what are the benefits?

- Available on fixed-rate and variable-rate loans

- Offering loan-to-value (LVR) ratios up to 90% (excluding LMI Premium Capitalisation)

- 100% offset available

- Competitive interest rates

Does it cost more?

Whilst the long-term interest rate offered by the mortgage manager is usually lower than what it is on offer from the main street lenders, you should consider the full terms and conditions that exist during the term of the loan to determine what most affordable for you.

What are the benefits of MyChoice Pays?

There are a number of benefits available to you, as the borrower. Some of which include:

- The borrower does not have to pay the interest on the construction portion of the loan until they have received the keys from the builder.

- The home loan approval is usually smoother as the lender and the builder are working together to start and complete the home build as soon as possible to save interest.

- The borrower has less administration and detailed paperwork to worry about during the loan approval and ongoing progress payment claim stages.

- MyChoice Home Loans will help you manage the long-term health of your loan, long after your dream home has been completed

So, whether you are looking to build in NSW, QLD, or South Australia, with one of our incredible builder brands*, now is your chance to jump in and get your dream home started!

To find out more chat with one of our experienced team members today!

_{*IMPORTANT NOTICE: This offer is applicable for McDonald Jones Homes customers where the deposit is paid from 1st November 2018 and for MOJO Homes customers where a deposit is paid from 1st April 2019. This offer is applicable for Allsteel Transportable Homes customers where the deposit is paid from 1st January 2022 only. This offer is applicable for Brighton Homes customers where the deposit is paid from 1^st August 2021. This offer is available to Weeks Homes customers where the deposit is paid from 1^st September 2020. Available to approved applicants of MyChoice Home Loans Pty Ltd only. Approved applicants must enter into a construction home loan and an Interest Subsidy Agreement with Mortgageport Management Pty Ltd (Manager). Offer is not available on the land portion of the construction home loan. Eligibility criteria, fees, charges, and T&Cs apply. MyChoice Home Loans Pty Limited ACN 610 250 578 is an authorised Credit representative (Number 485273) of Mortgageport Management Pty Ltd ACN 082 753 679 Australian Credit Licence 386360. This offer is only available when building a home with one of the following NXT Building Group builders; Newcastle Quality Constructions Pty Ltd ABN 82 003 687 232 – BLN 41628. T/A McDonald Jones Homes, MOJO Homes Pty Ltd – BLN269829C. T/A MOJO Homes, Brighton Homes Queensland ABN: 59 089 524 050 QBCC Licence No:1250787. T/A Brighton Homes. Weeks Homes South Australia – BLN G1028 ACN 008087278. Not available for bridging finance. Construction requirements apply, which includes a requirement that funds are to be retained by lender and paid directly to the builder at each progress payment stage.}

Three reasons why you should build your next investment property

In May this year alone, almost 17,000 new dwellings were approved for construction all around Australia, Australia Bureau of Statistics (ABS) data shows. There's a very simple reason for that – building your own home just makes sense – but how about building your next investment property?

Are you ready to build your next investment property?

1. The ability to build your investment property for profit

Whether you're building your first investment property or your 100th, you should do so with the express intention of maximising your profit. First of all, you have to build for the market.

If you're in a central area, occupied mainly by young professionals, a one or two bedroom home may be perfect . On the other hand, if you're in an area occupied by mainly families, a three or four bedroom home with a lawn is more likely to be in high demand. If you're smart, that ability to build what people in the area want could ensure your investment's success.

Whether you're building your first investment property or your 100th, you should do so with the express intention of maximising your profit.

You should also consider if you can build more than one dwelling on the property. Doing so will cost you more, but it could vastly increase the property's value and almost double its income earning potential.

2. Savings on your investment property's stamp duty

Building your investment could net you a higher profit, but it could also cost you less. You'll almost certainly pay a smaller stamp duty, because when you build you only pay duty on the land, not the property that you build on it.

To give you an idea of how much this could save you, if you were to buy at the CoreLogic RP Data recorded average capital city vacant land price in NSW you'll pay $7,623. If you were to purchase an established dwelling at the Australian Bureau of Statistics average capital city house price, you'd pay a $25,904 stamp duty in NSW. That's a saving of over $18,000 – a number which could be more or less depending on which state you're in.

3. Making the most of depreciation

When you build your investment property you can claim the depreciation of the building itself, and the appliances inside it against your tax bill. This reduces your taxable income, and as a result the size of your tax bill at the the end of the financial year.

Building your first investment property could help you build wealth.

This is particularly effective with new properties, as depending on which method of depreciation you use, you could claim the entire cost of most of your appliances in your home in the first few years after building it. Make sure you consult an accountant and a quantity surveyor to make sure your investment's as tax efficient as possible.

If you you're ready to build, the first thing on your to-do list should be to secure a Construction loan for investment. Here at Mortgageport we specialise in tailoring your loan to you, and guiding you through the entire process of your investment. Get in touch today for the expert advice and finance you need to get get started on the right foot.

Self employed home loan challenges and how to overcome them

Being self employed can be brilliant – you're your own boss, you set your own hours and decide how you want to work each day. However, every self starter will know that there are plenty challenges involved that can take some getting used to.

Apart from overcoming the temptation to constantly take four day weekends, securing a home loan when self employed may be one of the trickiest. Here we look at why that is and what you can do about it now.

Securing a home loan when you're self employed is possible with the right advice.

Self employed home loan challenges

When you're self employed, you may not have the income and employment documentation that most nine to five Australians do. Banks usually require these documents when approving a home loan, which can make things difficult.

A recent survey of 1,000 self employed Australians with home loans by Hashching found that this often leads to them getting a bad deal and paying 1, 2 or even 3 per cent more interest than they need to.

Luckily buying a home when you're self employed (and not being ripped off on your home loan) is very much possible.

Luckily buying a home when you're self employed (and not being ripped off on your home loan) is very much possible – you just need the right advice and strategy.

The essentials: Buying a home when self employed

Most lenders aren't risk takers. And unfortunately since you may not have proof of a guaranteed pay cheque, you present something of a repayment risk in their minds.

For that reason they may try and charge you more in interest – which is one of the most frustrating self employed home loan challenges.

Having a professional negotiator and mortgage expert by your side from the team here at Mortgageport should be your first step. We deal directly with dozens of lenders, we know how they work and we know how to find the most suitable home loan for you – without the sky-high interest rates.

Don't let being self employed stop you from buying a home.

Next you need to get your affairs in order. You'll usually need at least the following:

A business activity statement for the last 12 months, verified by the Australian Taxation Office.
You may be asked for statements showing your personal transactions over a period (usually six to 12 months).
The last two years of your company and personal tax returns.
Documentation proving how long you've had your ABN and GST registration.
A 20 per cent deposit (you may have to pay lender's mortgage insurance if you have under a 40 per cent deposit).

Once you've got those documents in order you're good to go. If you need any help preparing, get in touch with the team here at Mortgageport – we're happy to talk you through everything.