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Archives for 26 July 2021

Read time: 3.7 minutes

Privium Homes is thrilled to have been recognised at the Master Builders Gold Coast Housing & Construction Awards for 2021 where our project at Kalbar was named best Individual Home from $250,000 to $350,000.

Each year the Housing & Construction Awards recognise builders who are at the forefront of building innovation and quality craftsmanship. Adam Profke, Regional Manager of Master Builders Gold Coast, offered his congratulations to this year’s winners, saying:

“The diversity and quality of building work across the Gold Coast, particularly during this time of uncertainty, is testament to the resilience of our local industry.”

Privium is proud to have once again earned the Association’s recognition, and our winning home at Kalbar is a project we’re especially fond of. The custom floorplan, designed for a young family wanting a forever home, features four bedrooms, two-and-a-half bathrooms, an open plan kitchen and living area, as well as additional rumpus, study and media rooms.

Set in the rural Scenic Rim, the Kalbar house pays tribute to its surroundings with a façade that would look right at home amongst any showcase of classic Queensland architecture. The tough cladding materials are finished in a neutral colour palette that gives the home a modern edge and complements the inviting aesthetic the owners were looking to achieve.

Inside, the home immediately unfolds, the long entry hallway leading guests through to the central living area. The kitchen truly is the heart of the home here, its generous size and attached butler’s pantry making for a spectacular and functional centrepiece the family can enjoy for many years to come.

“We were looking for a home that we wouldn’t outgrow.”

“We were looking for a home that we wouldn’t outgrow,” the owners said, “somewhere that our children could bring their children back to.”

Brightly lit throughout, the Kalbar home strikes a balance between style and affordability, choosing attractive and hardy materials which make the most of the home’s natural light, supplied by large windows, sliding glass doors and a statement skylight above the dining table.

Maintaining a simple design allowed the owners to spend their money on the features they wanted most, like the beautifully appointed master bedroom. The suite features a large walk-in robe and an ensuite with double vanity and twin shower heads. Here the ensuite has been finished with the same understated luxury as the rest of the home, bright tiling contrasted against black tapware and printed tiles, adding a touch of elegance and modernity to the build.

The Privium team would like to thank Master Builders Gold Coast for their effort in hosting these awards each year. We also owe thanks to the owners of the Kalbar residence for their assistance in developing our entry, and to each member of the Privium team who helped bring the home to life.

You can see more details of our Kalbar project below and find out for yourself what makes it the Gold Coast’s best Individual Home $250,000 to $350,000.

Tianjin Floorplan

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Feel free to contact Privium Homes. Our friendly team will be happy to explore your options and answer any questions you may have about building your dream home.


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This article does not contain financial advice. The information provided is of a general nature and does not take into account your individual circumstances. Do not take financial advice from an internet blog.

Read time: 6.9 minutes

Investing in property is a great way to build your wealth, and you can use your home equity to get your portfolio started.

Australia is a nation of property investors. Our growing population and housing markets mean property is considered one of our most stable investments. The real hurdle standing between most people and their investment plans is the down payment needed to buy a second or third property.

Many investors choose to build properties in the traditional way – budgeting and saving, putting away money each week until they have a deposit. But, if you already own a property, you can make use of your existing home equity to secure your next investment.

In this article we’ll cover home equity in more detail and help you understand how it can be used to start investing sooner.

 

What is Home Equity?

‘Home equity’ is simply the difference between the market value of your home and the amount owing on your mortgage. So, if your home is currently worth $500,000, and you still owe $300,000 on your mortgage, your total home equity is $200,000.

Although your lender still owns part of your home through your mortgage, the amount you have already paid off, as well as any capital growth, belongs to you. It may not be quite the same as having $200,000 cash in the bank, but your home equity is money a bank or lender will allow you to access when borrowing.

If you have a big expense in mind you can borrow against your home equity and use the money to do things like:

  • Buy an investment property
  • Build a home extension
  • Invest in your small business
  • Purchase a car
  • Go on holiday
 

How much can you borrow?

With any home purchase there is a limit to how much money you’ll be able to borrow. 

For investors using their equity to secure a mortgage, banks are typically prepared to lend up to 80% of the current value of your home, minus your outstanding debt. Your exact borrowing limit is based on ‘usable equity’ which depends on the value of your home and the remaining value of your mortgage. So, for example:

  • Your home is valued at $500,000
  • A bank will lend up to 80% of that value, or $400,000
  • Less the $300,000 outstanding on your mortgage, your usable equity is $100,000

Your usable equity can help estimate how much you can borrow for your investment property. The exact amount varies, but a good rule of thumb is to multiply your equity by four, so in this case your $100,000 usable equity will let you borrow up to $400,000 for your next property.

 

How to buy an investment property using home equity

Using a mortgage to buy your residence is standard procedure – the buyer supplies a 20% deposit, and the bank lends you the remaining 80%.

Using your home equity to build to an investment property works the same way, except you won’t need to save up and pull together a 20% deposit. Instead, you use the equity in your existing home as your deposit on the investment.

To continue our example above, your $100,000 usable equity will cover the 20% deposit paid to the bank for your new investment property.

It’s important to note that buying an investment will incur all the usual fees associated with real estate, like stamp duty and legal costs, so your $100,000 equity needs to cover the deposit as well as those fees.

 

Lenders Mortgage Insurance

Banks and lenders are increasingly sensitive to the rising cost of housing and the need to make mortgages available to buyers who can’t supply a 20% deposit. When you’re using equity to build an investment property it’s possible to borrow more than 80% of the home’s value if you pay for Lenders Mortgage Insurance (LMI).

LMI is a one-off fee that lenders apply to low deposit mortgage options. It ensures your lender won’t be out of pocket if you default on the mortgage. The cost is typically several thousand dollars, and you will need to meet slightly stricter borrowing criteria, but LMI may allow you to borrow more than 80% of your investment property’s value.

 

Managing your risk

Although property is one of Australia’s favourite investing options, the market still comes with risks that need to be carefully managed.

When you’re using your home equity to build an investment property, you are using your existing home’s value to help secure another mortgage. In the worst-case scenario where the property market dips and you become unable to afford the mortgage on your investment, your lender could be entitled to sell your primary residence to recover any losses on the loan.

We always recommend customers consult a financial advisor and do their own research to figure out if investing in property is the right choice.

 

Interested in investment opportunities?

If you’ve been thinking about investing in property then there’s no time like the present. Australia’s housing market remains a strong performer and our growing cities are all predicting strong growth over the long-term.

To hear more about investing in your city, or for more information about using your home equity to build an investment property, feel free to contact Privium Homes. Our friendly team will be happy to explore your options and answer any questions you may have about the process.


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Read time: 7.2 minutes

If you’re planning a new home build or designing a bathroom and kitchen renovation, brass tapware and fittings are on our list of the hottest new trends to look out for.

Not so long ago your bathroom, kitchen and laundry fittings came in one choice: chrome. And then we had a big wave of minimalism all through the 2000s and black tapware muscled its way onto the scene. Since then, manufacturers have been getting braver about their choice of metals, and right now brass tapware is high on the list of the hottest bathroom design trends.

Whether you want a touch of class and elegance, need the right features to pair with your mid-century interior design, or you just want to stand out from the crowd, here’s our top 5 reasons to choose brass fittings for your next home renovation project.

The Statement Piece

Wherever you use brass fittings – bathrooms, laundries, kitchens – they tend to stand out as a bold choice.

Compared to the chrome or black tapware of years past, brass looks even brighter and more striking for its golden hue. When brass fittings are paired with the right choice of benchtops and cabinetry, they can easily become a statement piece around which to build the rest of your design.

The Living Metal

One of the hottest trends of modern interior design is using natural materials that develop character as they age.

You can see these materials everywhere in modern homes, especially in the form of real timber, stone tiles and stone benchtops, and now we’re seeing it in our metals too. Much like timber ages over time, brass changes colour as it’s exposed to air and water.  If you love that lived-in look for your home, then the way brass evolves over the years will be right up your alley.

But if that’s not your thing you can still use brass! Brass tapware is available in finishes that protect the surface and stop it from tarnishing over time – just be careful about using abrasive pads when cleaning.

A Colour to Match Every Design

Brass is an alloy that’s mostly made from copper and zinc, which means it can be found in a variety of colours, depending on how much of each metal went into the mix.

Chrome is always shiny and black tapware is always black, but brass fittings can be anything from a shiny gold through to a rich and deep silver colour. Whatever design look you’re trying to achieve for your home renovation or build, brass fittings can be found to match.

Polished vs Brushed

So, we know brass comes in a range of colours, but it can also be found in several different finishes. Polished and brushed are the two most common.

These are exactly what they sound like. Polished brass is shiny, bringing out the brighter gold tones and giving your bathroom or kitchen a classy and elegant feel. Brushed brass has a more muted effect where the surface has been intentionally dulled to work better with minimalist or understated spaces.

Whichever type is more your style, there are plenty of choices out there that can be matched to suit your interior aesthetic.

A New World of Design Options

Timber and stone are everywhere in the modern bathroom and brass tapware makes for the perfect accompaniment.

Rich woods like oak pair beautifully with the sophistication of brass fittings, and they’re also an excellent match for the heavy greys of stone benchtops and basins. Combining all three materials is a match made in heaven that can really tie a room together.

Choose your Dream Design with Privium Homes

Speak with our professional interior designers to build your dream custom home. 


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Header image source: ABI Interiors

Read time: 7.2 minutes

As part of the Australian Government’s 2021-22 budget, it was announced the First Home Loan Deposit Scheme would be extended for another year.

Government boosts to the country’s construction and housing industries played a major role in helping Australia fend off the worst of a COVID-19 economic downturn. Thanks to the success of those schemes, the government has renewed several incentives for 2021-22, including extending the First Home Loan Deposit Scheme (FHLDS).

In this article we’ll cover everything you need to know about the FHLDS, its eligibility requirements and how to lodge your application.

What is the First Home Loan Deposit Scheme?

The First Home Loan Deposit Scheme (FHLDS) is a government guarantee that helps first home buyers purchase their own home with a deposit of between 5 and 20%.

A typical mortgage requires the buyer to pay a 20% deposit. Low deposit mortgage options already exist and are a popular choice, but the lending criteria are slightly different, and buyers are required to pay thousands for Lenders Mortgage Insurance (LMI). LMI is a one-off fee which you won’t need to pay when purchasing through the FHLDS.

Unlike some other government housing incentives, the FHLDS is a guarantee on your loan rather than a grant or cash payment. For example, if you purchase a $600,000 home with an $80,000 deposit, the FHLDS guarantees the first $40,000 of your mortgage, effectively giving you the $120,000 needed for a 20% deposit.

How many FHLDS spaces are available?

During 2021-22 the federal government is making 10,000 new spaces available in the FHLDS which will be accessible from July 1, 2021.

When the FHLDS was offered in 2020-21, the scheme proved so popular that all 10,000 spaces were filled within a matter of months. It’s important to work on your application as soon as you’re ready to avoid missing out.

What are the Eligibility Criteria for the FHLDS?

The FHLDS is designed for first home buyers. It is available to both singles and couples, however couples are only eligible if they are spouses or de facto partners. Other couples, such as a pair of siblings or friends, won’t be eligible for the FHLDS.

To qualify for the FHLDS you and your spouse must:

  • Be Australian citizens (permanent residents are not eligible)
  • Be at least 18 years old
  • Be first home buyers who haven’t owned any other properties
  • Have a maximum income of $125,000 for singles, or a maximum combined income of $200,000 for couples
  • Show savings for a deposit of 5-20% of the home’s value
  • Be buying a primary residence and move in within 6 months
  • Stay in your new home for as long as the FHLDS guarantee applies
  • Meet the lender’s borrowing criteria
  • Comply with any FHLDS borrowing limits

What are the FHLDS Borrowing Limits?

If you meet the eligibility criteria for both the FHLDS and your mortgage lender, how much you can borrow will be limited by where you’re looking to buy:

State/TerritoryCapital City/Regional CentreRest of State
QLD$600,000$450,000
NSW$800,000$600,000
VIC$700,000$500,000
WA$500,000400,000
SA$500,000$350,000
TAS$500,000$400,000
ACT$500,000N/A
NT$500,000N/A

What type of property am I allowed to buy?

The FHLDS only allows you and your partner to buy a residential property to live in, and you must move in within 6 months of the settlement date. Investment or commercial properties are not eligible under the scheme.

Eligible property types include:

  • House and land packages
  • Off-the-plan homes
  • Land with a separate building contract
  • Existing homes, townhouses and apartments

How do I apply for the FHLDS?

Participating banks and lenders are handling FHLDS applications as part of their standard mortgage application process. The lender will make sure you meet all requirements and submit an application to the government on your behalf.

FHLDS Participating Banks and Lenders

There are currently 33 major banks and non-major lenders participating in the FHLDS.

As with a regular mortgage, the deals on offer vary from lender to lender, and we recommend customers shop around to find their best option. If you’d like help figuring out which lender is the right fit for you, you can contact Privium Homes and let our friendly team guide the way.

Accessing FHLDS and the First Home Owner Grant

Eligible buyers may be able to access the FHLDS alongside other government schemes, including your state’s First Home Owner Grant:

  • First Home Owner Grant. The FHLDS and the First Home Owner Grant (FHOG) can be accessed together. You will need to meet the eligibility criteria for both schemes and additional buying restrictions may apply. We encourage buyers to contact Privium Homes and speak to our team about their eligibility and whether their FHOG can be used as a deposit.
  • First Home Super Saver. The First Home Super Saver (FHSS) and the FHLDS can be accessed together. The FHSS lets buyers make voluntary super contributions that can later be used as a home deposit, up to $50,000. When you’re ready to make a purchase, the money you saved with the FHSS will be returned to you, along with any income it may have accrued.

We can help with FLHDS

If you’d like to access the FHLDS when building your home, or if you have any questions about the scheme’s requirements, Privium’s friendly team will be happy to help! We can walk you through the process and help you decide if the FHLDS is the right choice for you.


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