Have mortgage holders missed the boat?
BY KRISTY SHEPPARD
This week is the second successive week in which our lender panel’s average interest rate for three-year fixed-term home loans – the most popular with borrowers – has risen. This increase totals only 0.05 percentage points but still may indicate rock bottom has already passed.
These rises come after 14 consecutive weeks of falls totalling 0.46 percentage points.
In comparison, the basic and standard variable rate averages for our panel have budged only 0.02 of a percentage point either way in the past four months. Read more →
Australia’s population growth is under scrutiny.
BY ELIZABETH ALLEN
In the time it takes you to read this blog, Australia will have gained another person. That’s if you’re a quick reader and take one minute and 18 seconds from top to bottom.
If you’re slow, we may have another two people by the time you’ve finished.
According to figures released today by the Australian Bureau of Statistics (ABS), one person is born in Australia every one minute and 44 seconds; and we gain another resident through net migration every two minutes and 11 seconds. Read more →
Australia’s property markets are driven by our demographics: who we are, how we live and where we want to live in the future. So how can investors use this information to their advantage?
BY MICHAEL YARDNEY
Sophisticated property investors are students of demographics, so I found a recent Goldman Sachs report, A Study On Australian Housing: Uniquely Positioned Or A Bubble?, an interesting insight into the different forces driving our housing markets.
The report points out that Australia’s population is currently growing by around 2.1 per cent per annum, which is faster than any other developing nation. In fact we’re growing at a rate more reflective of a developing nation than of a wealthy developed country. Read more →
One thing I hear about time and time again in my line of work is just how hard people find it to source someone good to do the work on their property renovation.
BY ANA STANKOVIC
So the first question is, what constitutes “good’’ in the construction
industry? For most of us, it’s:
- Being on time and phoning when you say you will.
- Meeting all building, health and safety regulations.
- Being prepared to stand by the quality of your work.
- Cleaning up after yourself. Read more →
A new study forecasts changing fortunes for our children.
ELIZABETH ALLEN
I don’t know about you but I was highly irritated by that series of television ads which depicted older Australians, the so called Grey Nomads, living it up in retirement.
The ads were accompanied by the tag line that these people were “spending the kids’ inheritance”.
This irritated me on two levels: first, the inference that they were doing something illicit and second, the idea that this somehow made it all the more enjoyable. Read more →
There have been some remarkable world events on the back of the global recession, among them unprecedented regulatory changes to major banking systems and presidential world firsts. But what does the future hold for the Australian property market?
BY CATHERINE CASHMORE
If we take our eyes off other parts of the world and zoom in on Australia, we can see a country outshining its rivals in wealth, growth and resources. Even the recent election dramas did little to affect us on a national or global scale. Our concerns must look rather piddling to countries still facing dark clouded forecasts of laboured recovery after the 2008 recession. Yet it doesn’t stop ‘experts’ wagging their finger and cautioning ‘it’s only a matter of time’ before we suffer the same fate. Read more →
Once upon a time employment and stability used to be the key to a successful loan application – things like your employment history, having minimal unsecured debt, the strong ability to service a loan, a clear savings history and a deposit.
BY CHRIS ACRET
These things are all still important, however we’re seeing a definite trend toward the requirement by lenders for more and more detailed information.
The basics
Naturally, you want to put your best foot forward and ensure your loan application is as strong as possible. This includes: Read more →
With more properties on the market, fewer buyers for these properties and the constant conveyer belt of mixed messages in the media, the traditionally strong spring selling season is likely to be subdued.
BY MICHAEL YARDNEY
The latest RP Data Rismark Home Value Index confirms that Australia’s capital city property markets have slowed considerably, with predictions that prices will continue to show minimal change for the remainder of the year.
A very modest seasonally-adjusted rise of 0.4 per cent for median house prices was recorded in July, after a drop of one per cent in June – the first negative price movement for Australian capital city home values in 17 months. Read more →
For those property investors who are interested in taking full advantage of their tax deductions and also want a strategy that makes it easier to budget in advance, here’s some food for thought.
BY DAMIAN SMITH
‘Interest in advance’ mortgages allow borrowers to pay interest as a lump sum in advance, usually for 12 months, with the benefit of being able to claim this as a tax deduction. The biggest benefit for investors is that you can claim for the current financial year and not have to wait a full 12 months before claiming the deduction. This type of loan is aimed at property investors who want to maximise their tax benefits. It’s also particularly advantageous should you happen to earn less one financial year compared to others. Read more →
Fixed interest rates are trending downwards so is now a good time to lock in your home loan?
BY ELIZABETH ALLEN
To fix or not to fix? That is the question occupying many home borrowers’ minds.
For those who were caught with high fixed rates as variable rates plummeted during the global financial crisis (GFC), the memory probably produces a resounding ‘no’ today.
The percentage of borrowers with fixed rates dropped from about 25 per cent in early 2008 – pre GFC – to only three per cent a year later. Read more →
