Investors and homeowners were spared another interest rate rise when the Reserve Bank board met last week, but a swag of mixed messages is causing confusion about which way interest rates are heading.
By MICHAEL YARDNEY
On the one hand we have our volatile financial markets caused by problems in European and American economies. Economic commentator at The Australian, Terry McCrann, told Peter Switzer www.switzer.com.au on Sky News Business Channel program that he’s not confident “at all” the global recovery can avoid a double dip recession. “I seriously worry that we’re going to see a double dip in the US in the second half of this year,” said McCrann, adding that China is a concern also.
On the other hand other new data suggests future rate increases remain on the cards.
This week’s data showing three per cent-plus annual inflation, solid demand for workers in an already strong labour market, and a record number of monthly car sales will give the Reserve Bank of Australia (RBA) something to think about as the strength in Australia’s economy could lead to inflation.
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If you’re considering making your owner-occupied home an investment property down the track, then you need to consider the loan’s structure from the very beginning.
By CHRIS ACRET
There’s a lot more to sourcing and managing the finance around a property purchase than simply telling your bank how much deposit you’ve got, what security you’re offering and getting a loan ‘off the shelf’.
Quite often lenders and their loan consultants take a ‘one size fits all’ approach to arranging a loan, but financing just isn’t like that.
For example, if it’s part of your longer-term plans to make your owner-occupied home an investment property in the future, you’ll need to think about the way you structure the initial loan.
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What are the latest property statistics and research telling us about where the market is headed?
BY MICHAEL YARDNEY
In a recent report David de Garis, senior economist with the global markets research division of the National Australia Bank (NAB), explained that our housing markets are cooling, but clearly not collapsing like many had anticipated.
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It’s one of the largest and ugliest jobs in a property management business. It’s the reason property managers can win managements and lose them, and it’s the reason some investors sell their investment property and never enter this wealth race again. It’s the difference between good tenants and bad – late rent.
BY EMILY SIM
The legislation says we have to give the tenant time to pay their rent but the landlord must make their mortgage payment or they’re charged interest and permanently scarred right down to the line item in the eyes of their lender.
In an attempt to make business more profitable, retain landlords and staff, property management businesses have been looking for a way to collect the rent that meets their clients’ requirements. Enter the rent payment system.
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Maximising bank valuations is a critical step for most property investors – and here’s how you can do it.
BY STUART WEMYSS
Getting the highest property valuations will assist an investor’s borrowing capacity and help them build a property portfolio. To some degree, a property’s theoretical market value is somewhat irrelevant. What really matters is what the bank will value it at as that determines how much equity you can borrow against.
Three steps to getting the best property valuation
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