This is why looking at things from more than one angle can make a difference.

I’ve just been reviewing the finance of one of my clients and have been able to bump up her purchasing power by 15% with one simple change.

The challenge is her income has been increased for some time with higher duties. She has been advised this will but ongoing, but it still waiting on her employer to issue the paperwork. Sound familiar?

Pretty much most lenders want to see pay slips which will reflect the higher duties. But without a formal letter confirming they will be ongoing they will only use the regular base income.

If we were in a flat or declining property market, No Problem. You would just wait until you had the letter then proceed. But in a market where prices are shifting up by 1-2% a month every day you delay is costing you.

The solution was to go with a lender who was happy to accept bank statements showing her pay being credited. As long as the credits are consistent the lender will use the net income shown for servicing.

She was also able to borrow above 80% without paying mortgage insurance. But that's another story.    

This is just another example of why just talking to one or two lenders can really limit your options. Which is why I work with over 40 different lenders. 

Are you looking ways to maximise your purchasing power? Then Book in with me for a Free Maximiser session to find out how you can boost your purchasing power and buy your dream home or investment property in the next 30 days. Click here to go straight to my calendar to make a time.

Brisbane has grown 1.2% in the last month and 15.8% over the year.

Given there remains an existing undersupply of housing, not enough new homes being built nationally to bridge the gap (only 183,000 last year compared to the 240,000 a year required) and an increasing population – particularly in Qld which seems to be the place everyone wants to live then that rise is unlikely to stop any time soon. Even if the RBA increases rates.

Even if the market only grows 10% over the next 12 months that would mean a property selling today for $700,000 will cost $770,000 this time next year.

Unless you can save at a faster rate than the market is growing then you will be going backwards each month.

This is the reality of a rising market.

If you are looking for ways to maximise your purchasing power so you you get into the market now then Book in with me for a Free Maximiser session to find out how you can boost your purchasing power and buy your dream home or investment property in the next 30 days. Click here to go straight to my calendar to make a time.
 

Greg Carroll
More Than Accountants