Are you thinking of renovating or building?
In this month’s monthly market update we are off site at one of our clients properties in St Kilda East. This client has recently completed a major renovation on their property and required a construction loan that we arranged on their behalf. This property was originally purchased in 2016 and the renovation took nine months to complete.
We discuss why you would need a construction loan and the importance of sitting down with your mortgage broker and working out your budget, affordability and end position before engaging with architects and builders.
CLIENT ACTIVITY HIGHLIGHTS
The trend continues with First home buyers, Property up-graders, and renovators being our most active clients.
Last month we had a client purchase a two story, single fronted Victorian house in a great street in Flemington for $1,005,000. This property was originally quoted between $1,100,000 and $1,200,000. We managed to arrange finance for our client with an excellent variable interest rate of 3.55% due to the strong financial position and profile of our client.
Even though our investor clients have been generally quiet, some people are taking advantage of the reduction in property prices in Melbourne. One of our investor clients purchased a two bedroom house in Balaclava for just under $800,000. Even though on small land, this was an excellent price for Balaclava and our client intends to undertake a small renovation/upgrade on the property to increase it’s rental return. We managed to secure our client an excellent investment loan rate of 3.99% with interest only repayments.
INTERESTING ARTICLE
Mortgage approvals rise above market expectations
The latest Lending to Household and Businesses data from the Australian Bureau of Statistics (ABS) has reported that, in seasonally adjusted terms, the value of home loan approvals increased by 2.7 per cent in February, reversing the downward trend reported over the past few months.
Mortgage approvals rise above market expectations | Charbel Kadib
