Reserve Bank keeps interest rates on hold at record-low 1.5pc

The Reserve Bank of Australia has left official interest rates on hold as expected after its monthly board meeting. RBA Governor Philip Lowe said the central bank decided to leave the cash rate unchanged at a record low 1.5 per cent. The decision to leave rates unchanged for a 13th consecutive meeting was widely expected […]

Joint bank accounts – Should you open one?

When a couple gets married or has been in a relationship for several years, it is common to operate out of a joint bank account. So, is this beneficial? Is this the right way to go about things? Is it offensive to tell your partner that you would prefer to keep your accounts separate? A […]

What are the costs of buying a home?

Unfortunately, there are a number of fees and costs associated with buying a home. Here is a list of the more usual ones. Not all of them will apply to all situations. Stamp duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state governments […]

What to consider before renovating

The decision to renovate is a common sticking point for homeowners, who can spend hours weighing up the cost benefits. Whether your motivation is to add value to your property or to add a touch of your personality to the home, renovations are expensive and debt often follows. By working with a mortgage broker, you […]

Things that could trip you up when applying for a home loan

Buying your dream home is exciting, so the last thing you want is for your home loan application to be held up. While many factors are considered in assessing an application, showing stability and consistency is key for lenders to determine whether you will be able to repay the loan. But sometimes what’s happening in […]

Is a Developer’s Incentive a Good Deal

Developers generally offer incentives because they need to get pre-sales in what could be a slow or oversupplied market, which in turn enables them to get a project up and running. Offering incentives is a marketing tactic. The problem for buyers is that they could end up overpaying for a property and then having issues […]

RBA leaves rates on hold at 1.5 per cent

The Reserve Bank board has kept its cash rate on hold at a record low of 1.5 per cent for the 13th consecutive month, amid a host of signs that the economy is picking up. Treasurer Scott Morrison told the Coalition party room as the board was meeting that job advertisements were growing strongly, climbing 13 […]

Examining A Home Objectively: What Matters and What Doesn’t

Everyone heads out to look at potential homes with a list of the things they want in a house, and a list of the things they definitely do not want.  In addition to that wish list, there are also some other things you will notice about the homes you visit that may strike you as […]

Interest only loans- What’s happening?

Interest rates are a hot topic right now.  Up until recent times, home loan rates were identical to investment loan rates It’s not as easy as it once was to apply for an interest only loan. Over the last few months lending for this type of loan has been tightened by the banks in an effort to slow […]

Buying A Home That Can Grow with Your Family

If you are a first-time homeowner, or are purchasing a home after a major life change such as marriage or having children, what should you consider to be sure your new home can grow with your changing family?  The time and effort that go into purchasing and decorating a new home, not to mention finding […]

What counts as genuine savings in a loan application?

If you apply for a home loan, particularly if the loan is for more than 80 per cent of a property’s value, you’ll more than likely have to prove to lenders that you have a satisfactory amount of savings. This is to demonstrate your ability to funnel a portion of your income into repayments. Although […]

Are you prepared for an interest rate rise?

While Aussie mortgage holders have enjoyed low interest rates for several years now, the party might soon be over. The Reserve Bank of Australia revealed in the July minutes of its monetary policy meeting that it considered the neutral cash rate to be 3.5%, a two-percentage point increase over the current record low cash rate […]

Overcapitalisation, Some Common Mistakes

Simply put, over capitalisation is when the cost of a home improvement is more than the value it adds to your property. While some renovations can increase the value of your home, there is an upper limit on what properties are worth at any given time.  1 – Getting Emotionally Involved Many homeowners undertake a […]

Reserve Bank holds interest rates at 1.5%, warns on high Aussie dollar

Despite being under pressure from tepid economic growth, weak inflation and a surging Australian dollar, the Reserve Bank has left interest rates unchanged at its August board meeting. The stance was all but universally expected, given RBA governor Philip Lowe made it clear last week that rates would not be moving for a considerable period of time. […]

Cashflow vs Capital Growth

Most investors appreciate that there are two components to the returns from investing in property: capital growth – where the value of the property increases over time; and cash flow – from rental income. An investor’s age, earning capacity and asset base will determine whether they are more interested in long-term capital growth or cash […]