Industry News

NSW Budget delivers some good news for property buyers

The NSW Government announced changes to the abolition timetable of Mortgage Duty in it's recent state budget.

The changes bring forward the abolition date to 1 July 2009 and provide for 2 new exemptions from mortgage duty for mortgages that are associated with housing.

Both exemptions will be only available if the borrower(s) is a natural person.

The first exemption, which takes effect from 1st September 2007, is an exemption for owner occupied mortgages. If the mortgage secures a loan made for another purpose (i.e. investment purposes), mortgage duty will still be charged on that portion.

The second exemption, which takes effect from 1st July 2008, is an exemption for mortgages that are made in connection with investment housing.

This means mortgage duty will not be payable on any loan taken out by natural persons associated with buying owner occupied or investment property as of 1st July 2008.

Mortgages provided for other investment purposes will still be subject to mortgage duty.

The budget also contained confirmation of a cut in land tax from 1.7% to 1.6%. This equates to an annual saving of $148 for an investor with a $500,000 block of land.

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Product News

We can find a financial solution for you!

Mortgage Force has over 35 Lenders on our panel which means we can usually find a finance solution no matter what the challenge.

Below is a list of some recent loans we have been able to source for our clients

• 100% home loans - we have a number of mainstream lenders now able to provide up to 100% of the purchase price of a new home.

• Vacant Land - 95% of the purchase price on up to 25 acres and up to 80% on up to 100 acres.

• Company title - up to 85% of the purchase price.

• Inner city purchases requiring > 80% funding

• Low doc loans up to 90% on residential property and Low doc loans for Commercial purchases

• Expat low docs

• Rural residential loans up to 85% of purchase price

• Unrestricted Guarantor loans

• Loans involving multiple properties on one title

• Residential security used to support commercial loans

• Development and take-out finance

These are just a few examples of the range of products and options we can source for residential, commercial or rural property finance. So no matter what the requirement, whether it's for you, friends or family members, when thinking finance options, think Mortgage Force!

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Other News

East Coast States lead nation's property recovery

BIS Shrapnel's Residential Property Prospects, 2007 to 2010 Report has shown that Australian's eastern states are leading the housing recovery, as experts predict an upward climb of property prices over the next three years.

Angie Zigomanis, BIS Shrapnel senior project manager and the report's author, said that the "high growth in employment is improving household confidence towards investment in residential property".

Forecasting the median house prices of key cities, the report explored the price growth, economic conditions and property market performance of each state and territory up to 2010

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ASIC warns of scams

Have you received any of those "confirm your email details" emails lately?

ASIC has just issued a warning that with the rapid change in technology there has been a rush of scams designed to trick people into providing heir personal details as well as paying large amounts for nothing in return.

ASIC has provided a list of warning signals including being:

• promised bigger and faster returns with less risk

• told they have inside information or secret techniques to give them an edge

• told to act quickly

The most effective scheme is the one where they promote high returns on a secure investment. These are called "Ponzi" schemes.

Part of the money deposited by investors is used to pay their first dividend or interest payment. The victims think they are on a winner because they have received this high payment - they then invest more and tell their family and friends about it as well. New money arrives with a portion being retained for future dividends/interest payments but no investment is ever made.

Technically these scams could go on for years - or until large enough number of investors want their capital back - but usually they fall over because the promoter spends the money too quickly.

And a finally tip from ASIC - do not respond to any unsolicited emails for personal details unless you are 100% certain of the source