THE MESSAGE. BRINGING INTO FOCUS FILIPINO PRESENCE IN AUSTRALIA
www.kalatas.com.au | Volume 6 Number 7 | APRIL 2016
PROPERTY MARKET
Retail and housing growth continues in NSW
The NSW economy
continues to
lead the nation,
with ABS figures
confirming
ongoing growth
for both retail
spending and
building approvals.
The official data released
early this month showed
retail trade increased by
4.6 per cent in the year to
February, above the national
result of 3.3 per cent.
Treasurer Gladys
Berejiklian noted that this
was the 31st consecutive
month that through the year
retail spending growth was
above the national average.
The number of dwellings
given the green light also
rose in February, up 14.3 per
cent to 5,116 approvals, well
above the average of the last
five years (4,146).
“NSW continues to see
positive results across every
key economic indicator, and
all signs show that we can
expect the NSW economy to
set the standard for the rest
of the nation well into the
future,” Ms Berejiklian said.
“This continued strength
is boosting confidence in
NSW – while other states are
struggling amid a challenging
economic environment, NSW
is continuing to shine.”
Planning Minister
Rob Stokes said the figures
showed strong confidence
in the NSW economy and
building sector.
“To plan for Sydney’s
growth, we must provide
sustainable, affordable and
diverse housing stock for
those who need it, where they
need it,” he said.
“The NSW Government
is working to improve the
planning system to ensure
that, as NSW grows, the
community reaps the
benefits of that growth
through improved housing
diversity and choice, more
jobs close to home and better
infrastructure and public
facilities.”
Your Bank said ‘No’…
H
ave you applied
for a home loan
in the past and
the bank declined your application. Don’t dismay there are
other ‘alternative’ options in
the market.
Everyone’s situation is
not the same and every bank is
different, there are banks that
target the vanilla type deals
and there are some ‘specialist
lenders’ that know how to
think outside the box.
Specialist lending is a
segment of the mortgage
market dedicated to providing
alternative home loan
solutions to borrowers who
are unable to meet the lending
criteria set by banks and
lenders mortgage insurance
providers.
There are numerous
reasons why a borrower
may fall into the specialist
category and there is no single
characteristic defined that
pigeonholes every specialist
borrower together.
Common reasons why
borrowers may need a
specialist lender are:
• Failed to meet Mortgage
insurance criteria;
• Failed to pass traditional
credit scoring;
• Has had a few bank
decline in the past;
• New Australian
Permanent Resident
with no credit history;
• Has multiple personal
debt to consolidate;
• Needs to payout
business/tax debt;
• Needs cash for business
purposes;
• Discharged Bankrupt;
• Has a paid or unpaid
credit default on their
credit file;
• Has late payments or
their mortgage is in
arrears;
• Has been self employed
under 2 years;
• ABN registered only 12
months;
Many people actually fit
into one of these categories but
do not realise there are ways to
still get finance approved. A
case study is presented below,
this is a common scenario
many people face.
CASE STUDY 1
Background: Paul went
through a divorce 18 months
ago, he has taken over all
marital debts and in addition
he has accumulated a $20K
personal loan which was
used to pay legal fees when
the property settlement was
finalised.
Theo's mortgage
statements are up-to-date but
you notice that the payments
are often a week late and a few
PROPERTY | FINANCE
JERONE
BALAGTAS
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of the cards are also over their
limit.
• Age: 32 years old
• Occupation: PAYG
Carpenter
• Income: Averaging
$1,800 per week
• Assets: $400K Home;
$2