Are you considering buying a new home?
The process can be a daunting task, with much more to consider than the cost and interest rates on offer.
Real Estate Agent, Dion Tolley, sits down with mortgage specialist, Paul Hale from Time Home Loans, where they discuss things to consider before purchasing a property.
With over 20 years’ experience in the industry, Paul analyses why it’s good to go with an independent broker and discusses the advantages of purchasing through a self-managed superfund.
What are your thoughts on choosing an independent broker?
I think choosing a broker gives you choice.
There are many lenders out there in the marketplace and every lender has a different suite of products.
By going to an independent broker, you save your time by choosing the product that best suits you and your situation.
Choice also creates competition and competition between lenders creates an environment where you’re more likely to get a more competitive product.
A number of buyers ask about purchasing through a self-managed superfund. What can you tell us about that?
A self-managed super fund is essentially allowing people to take control of their own superannuation.
Without a self-managed superfund, your money is invested into automated accounts. With a self-managed account, you have input into the choice of where your money goes.
One of the choices you can make is buying a property.
This is just like buying a property in your personal name but using the cash in your super-fund as a deposit for the property. You can also approach a lender to get a loan for the balance needed to purchase the property.
From there, you’re going to have an asset that presumably has a rental income that you’ll have a loan against, which you can pay off using superannuation contributions.
The ultimate goal from there is to have an income-producing asset in retirement as part of your super fund. 