Blue Zinc - Financial Broking Services

28/11/2016

Fixing – heh!?!

Australian mortgage interest rates are at historical lows. Myself on this forum, and indeed the wider press has covered this topic comprehensively.

What’s new is Donald…

Mr Trump is going to spend – pinky to corner of mouth – one trillion dollars on infrastructure, bridges and damns etc. As the US is currently broke he will borrow this money. Governments borrow money using government bonds. These government bonds largely set the price of money. So we should expect mortgage rates to increase.

Even if you left Donald out of the equation most people in the pub would bet a beer on rates increasing sometime in the next few years.

So here is a little to do list for everyone with a mortgage.

1. Work out what your mortgage repayments would be if rates were 7%. Write that number down. Does your budget balance if that was your repayment? If so, call the guys at Blue Zinc and ask us to arrange increasing your repayments to the 7% amount. I have discussed this previously but the general gist is that you will make huge inroads into paying off your mortgage sooner and saving tens if not hundreds of thousands of dollars.

2. Call the team at Blue Zinc to discuss fixing your rate. I would suggest doing this quickly – in the past 24hrs we have had three banks raise their fixed rates effective immediately.
We currently have 2, 3, 4 and 5 year rates below 4%. This is exceptional value and I really don’t see these rates sticking around for long. Some of these lenders review their rates at the end of each month (such as NAB), which gives us around 5 days to lock in these rates.

Keep in mind we can arrange for you a ‘rate lock’ which will guarantee the rate we apply for regardless of how long the bank takes to approve your loan or settle the refinance. If you prefer we can keep you at your current lender and simply request a fixed rate, it’s up to you.

It will be a nice feeling sitting at your friends BBQ in 2020 saying you are paying 3.9% on your mortgage…

Kind regards
Blue Zinc Team
Ph: 1300 668 017

Image source: totallypic / Shutterstock.com

16/03/2016

Good afternoon,

It was great to meet you all last night thank you for joining us at the Blue Zinc Finance and Oaks Property Sales Property Club meeting. We really enjoyed sharing a little of our knowledge and hearing some of your experiences. We are always happy to chat and run cash flow analysis (see more below) and property reports on properties that you are looking at and please feel free to reach out with any questions if I haven't covered off on them below.

ONLINE TOOLS

Researching property location is a big part of the buying decision and we spoke a little of how to find some of the information on large scale infrastructure and also on neighbourhood quality. These two websites
http://infrastructureaustralia.gov.au/
https://www.nics.gov.au/Timeline

Are good to see the large scale projects that are being developed or will possibly go ahead in the future. I also find really useful a map function on

http://www.realestate.com.au/invest/2-bed-unit-in-sydney,+nsw+2000 really useful to see suburb average price, yield and historic growth for large areas. You can quickly see how far from the CBD do you need to go to find the 2 bedroom apartment at a selling price of $400,000 or where property is yielding over 4% if that’s what you need to make an investment work.

https://www.microburbs.com.au/ has more local knowledge like walking scores, access to schools, hospitals, transport etc for each individual property and it has taken lots of linear data and visualised it on maps to make it much easier to digest.


PROPERTY SPECIFIC CASH FLOW ANALYSIS

We have also run cash flow analysis reports on the unit in the Goldsbrough and I used the scenario of going with the hotel funded refurbishment and the 10 year operating lease. I have shown two levels of deposit:
1) the first is a conservative gearing of 70% if you put in a deposit of $120,000 and borrow $248,000. After taking into account all costs and negative gearing (for an assumed income earner of $75,000 per annum) the unit will provide you with positive cash flow of $100 per week. ie you will have $100 per week more cash.

2) the second is fully funded using debt for 100% plus the purchase costs of just under 4%, you would need to secure this with additional equity from an existing property. After taking into account all costs and negative gearing (for an assumed income earner of $75,000 per annum) the unit will provide you with positive cash flow of $35 per week. ie you will have $35 per week more cash.



Both these scenarios produce positive gearing so my apologies that the pie graphs may look funny with the positive cash flow to you each week. We can run any scenario you want with any figures for an exact property you are looking at.


Regards
Ben, Jason and John

27/02/2016

Come down and support Denver Beven and the team host the Manly Inflatable Boat Race tomorrow. You can still enter on the day from 9 am, racing at 10:30 am and all profits go to the charity Tour De Cure who help fund cancer research. See you down there tomorrow, I'll be racing on a blow up crocodile! Ben

22/06/2015

22/04/2015

The team at Blue Zinc are very proud of Denver Beven who is once again heading off to ride in the Tour de Cure. Ride safe and thank you for helping in the effort to cure cancer. If you too would like to help please visit Denver's fundraising page
https://www.tourdecure.com.au/pages/donate/index…

17/04/2015

As the world around us gets faster and more complicated, our homes have become our sanctuaries. Beautiful, functional homes are the backbone to a happy and successful life, giving people the private space they need to rest and retreat from the outside world. There are lots of tried and tested ways to improve your home environment, from simple touch-ups and colour changes through to transformative renovations and rebuilds. While good homes depend on physicality and presence, great homes bring space to life by engaging with the experience of living.

Whether you live in a small inner-city apartment or a seaside mansion, there really is no place like home. Perhaps the most important thing to keep in mind…. http://bluezinc.com.au/News.aspx?NewsId=465