With the new financial year just started, and many people taking this time to review their finances, we thought it timely to speak to some local experts to give you the info you need on all things money.

Today we talk with Simon Cody, Lending Manager from Port Home Loans, about the housing market, and what you should look for in a home loan.

Newsport: What is the current housing market like in Port Douglas?
 
Simon Cody: We have had a very quiet wet season which is normal. it definitely hasn’t helped that tourism figures are down on last year due to the Global Financial Crisis (GFC), but now coming into the high season things are really starting to pick up. The first home buyers are starting to re-enter in to the market which is a good indicator of confidence returning to this sector of the market, as previously we have been mostly dealing with investors picking up bargains.
 

NP: Are there good investment opportunities in the housing market in Port Doulgas?
 
SC: There have been some good opportunities around for astute buyers, such as mortgagee sales, people should keep an eye out for auctions that are happening around town and register their interest with agents if they are on the hunt for a bargain. Definitely get your pre-approvals first though so you have the edge over other buyers.

In the last year house prices have come down due to the GFC and so it’s more of a buyer’s market and prices are negotiable.  
 

NP: What should people look for in a home Loan?
 
SC: Transparency, so you know what you’re getting. Some banks have low interest rates but high fees and others have low fees but higher interest rates. it can be easy to get duped if you don’t have someone to measure the whole picture up for you.

At Port Home Loans we tailor each loan to the individuals goals and can provide clear comparisons. Some people just want to pay their home loan off quicker, whereas others want all the bells and whistles to manage their money, like offset accounts and lines of credit so we can help you identify what you want. For uncertain buyers, we can do things like splitting your loan into part fixed and part variable. In a nutshell each person is different, but each person definitely needs a specialist to guide them the right way.
 

NP: What are some of the fees to be wary of?
 
SC: Things like the Lenders Mortgage Insurance fee, which is charged if you do not have a 20% deposit. Most people don’t really understand this fee or how big it is. We can look at ways of either eliminating this, or reducing it, and also helping the client so they do not have to come up with this fee at settlement.  

Other costs such as stamp duty, solicitors fees and even body corporate or council rates due at settlement, can sometimes be overlooked, so what we do is give all of our clients a detailed purchase cost budget, so that there are no last minute worries at settlement day.

A really big one that got people last year is break costs from exiting a fixed rate home loan early, I find that a lot of people that enter into a fixed contract are not aware that you can pay thousands of dollars to jump out of the fixed rate during its fixed rate term.  
 

NP: When would someone choose an interest only loan over a principle and interest loan?
 
DC: This is definitely something each individual should get qualified accountants advice on. As a general rule our investors choose interest only, as the interest is fully tax deductible, this way they can maximise their negative gearing benefits.
 

NP: Is the First Home Owners Grant still available?

SC: The First Home Owners Grant is still $7000 to eligible buyers.  Anna Bligh also announced a $4,000 boost for regional buyers who are buying new or building new homes. New homes must have never been occupied or sold previously to be considered ‘new’.


If you're in the market for a home loan, or looking at switching from your existing financial institution, feel free to discuss your options with Simon by calling him at Port Home Loans on 4099 4337.