buying first home in Sydney area

sydney central business district, the finest harbour in the world

Sydney, New South Wales is one of the most affordable metropolitan cities in Australia for buying a home. As a result, it attracts many of Australian’s first time home buyers. If you’re one of the many home buyers in this category, here are some tips to help make your first home investment successful.



1) Take advantage of the $20,000 tax credit and federal subsidy! it is a lot of money to most people, but for first time home buyers this amount of savings can really make a difference on a lower scaled budget.

2) Think about resale down the road. Usually the first home or apartment you buy is just the first home you buy. You’re probably not planning on spending the rest of your life in this home, so it’s especially important for first time buyers to choose a home that will have good resale value down the road. Whether you plan on staying in your first home 3 years or 10 years, you’ll want to have a home that will appeals to future buyers. Doing this will not only ensure that you can sell your home in the future, but it will also bring a higher price when it comes time to sell. Talk with your Real estate agent about which suburb neighborhoods have performed well over the past five years as far as home sales are concerned. Off course Pennant hills or hornsby area would be much differ than Botany bay or Marrickville with busy airport, industrial area and other. Coastal suburb such as bondi, San Souci, Watson bay or cronulla would be differ than western suburb such as mount druitt, campbell town or cabramatta.

balmoral beach, a fine Sydney suburb with magnificent ocean view

3) Get pre-approved before you go look at homes. Buyers who already have a mortgage may have a good idea about what price range they should be looking in. However, if you’re a first time home buyer, there is really no way to determine this unless you talk with a lender. You may get approved for $80K or $150K. And, in Suburban area, that’s the difference between a condo and a house! It’s important to know how much money you’ll be approved for before you go look at homes. You don’t want to find the perfect house and then find out that you can’t actually buy it. Also, many buyers think that they have to use a mortgage lender who is located in the Sydney area. This is not the case. You can use any lender such st george building trust that you trust (and if you’re not sure where to start, your Realtor should be able to recommend good lenders for you to contact).



4) Don’t overextend yourself! If you currently rent a home, figure out how much you spend every month in the rent and bills. Remember that when you own a home, you’re not only responsible for the mortgage payments and regular bills, but also taxes, insurance, and other fees. The taxes and insurance will be based on your home value. The HOA completely depends on which neighborhood you choose and the amenities that it offers. The good news is that you’ll know all of these amounts before you close on your home. Be sure to talk with your lender about how much you want to spend in your monthly payments and also whether you want taxes and insurance included in that monthly mortgage payment. Also, talk with your Realtor about these costs. He or she can recommend contacts for insurance so that you can shop around and get the best rate. Your Realtor can also get HOA estimates so that you’ll know how much a neighborhood costs, so to speak, when you’re driving around and comparing these.

2 Horrible Mistakes in an At-Home Business

With the current economy, and jobs being dropped just about in every industry, its hard to think about anything other than how we're going to keep funds coming into our bank accounts. The government can't support everyone, and so, that means we all need to start looking for a reasonable way to stay afloat. An at home business opportunity might be that very thing.

However, before jumping right into the next at home business opportunity you see, I want to save you from a few mistakes that might occur.

Being in the at home business industry for a little while now, I have realized that not every at home business opportunity is the right one for me, and rather, for you as well. Here are 2 of the many critical mistakes to avoid:

1.Un-Original Product: Why promote an opportunity that can be found in your local store? It makes no sense. Most of the time these at home business opportunity companies promote products that are over-priced and very unoriginal. I'm not saying there aren't any original products available, I'm just saying.. watch out before you get sucked into a product that isn't going to sell. Sure, you Aunty or Grandpa might buy it, but thats probably because they're being nice. Research Research Research.

2.Low Compensation: What are the profits of each sale? Think of it like this, if you're going to promote something, you want to get paid BIG for it. If you're going to invest in marketing and promoting something, wouldn't it rather be on something that's going to give you HUGE upfront commissions? I'm not talking about a measly $15 dollar upfront commissions, I'm talking about $800-$3000 upfront commissions. This is where the REAL money is made, the type that will pay all your bills, and maybe even let you quit your 9-5 job. Get serious and research the pay plan very carefully.

There are so many at home business opportunity tips to make you thousands, or even MILLIONS of dollars if you desire. source: free articles

Plan Your Business Financing

Most businesses start out thinking the first thing they need is a great business plan. The popular myth is that potential lenders will place great stock in your business plan as a major consideration for approving the financing you need.

While a well written business plan will assist you when you are seeking financing, it is far down on the lenders list behind things such as your business management teams experience, your past business successes and your lending character. Having a plan for accessing the business capital you need to execute your business plan is what is required to bring your business success. Not having a viable business financing plan is the direct cause of why 90% of all new businesses fail.

Your lending character means the lender sees you having the ability and stability to repay the loan. They also ask how far they believe you can take the business to maximize the potential earnings and therefore their chances of getting repaid.

The first thing a lender is going to look at is how did you structure the business and were you responsible and knowledgeable in that. Are you Incorporated or an LLC? If not you are declined for a business loan and everything becomes based solely on you as an individual. Did you do your EIN, State, business licenses and bank filings correctly? If not, you are declined because a lender requires attention to detail.

A simple business credit report check by a lender will quickly show whether or not you are even in the ballpark for getting approved for financing. If the lender finds that you have not bothered to insure that your business has active reports with all three major business credit reporting agencies, then of course you are immediately declined.

Next, the lender will look at the character of your business credit reports. What do they say about your business? What kind of payment histories have you had with debts that are easy to get such as vendor trade lines, small business credit cards, equipment leases, etc? If your business has no credit history or very minimal history then no lender will even consider your business for a larger loan when you have no track record of paying smaller debts.

If you pass these simple tests, now a lender will get to the heart of you business loan application and it is only at this point that you even get the opportunity to present your funding request. Unfortunately as high as 90 percent of all business loan applications never get to this point, because most business owners never take the time to complete the initial steps.

So you have made it this far, The next question you need to ask is what is a lender going to want to see? Debt service! Here is where the lender finally looks at your business plan, or at least the financial pat of it, to determine if your business can debt service the loan. To make this determination a lender will test the reality of your numbers. Basically this means do your numbers add up and do they make sense.

If you do not know anything about accounting you had better get help. When a lender looks at your projected financial statement and finds simple accounting errors, then in most cases you will again be declined. They do not want to lend money to someone who cannot produce a simple proof and loss statement; or someone that cannot balance a balance sheet. There is a lot of help out there, get some.

Next, a lender will look at the market niche section of your business plan. While most business owners think that this is the place that sets them apart from the competition, it actually is the part where lenders will compare you to your competition. Here is where lenders must see that you have done you market research. Can the revenue claims that you are making in your financial projections be backed up by the actual market demographics for your specific business industry, location, customer base, etc.? It essentially comes down to the need for your product or service.

All of this can seem overwhelming and in truth it can be. It is the reason that 97 percent of all business loan applications get declined. The overriding reason is that business owners are not taught this in school and typically only gain this knowledge through years of brutal experience that normally includes having one or two failed businesses under their belts.

This will give you plenty of information to get you started on putting together a business funding request.

Source: Free Articles