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 […]

Is it worth making early repayments of student loans?

ONE of the earliest debts many young people take on is to pay for university. If there is such a thing as good debt, this one fits the bill — education generally leads to higher lifetime earnings. Most people who borrow to fund university studies do so using the Federal Government’s Higher Education Loan Program, […]

How to buy a home when you’re self-employed

Self-employed borrowers often come up against the challenge of not being able to present a raft of payslips and tax returns to back up their loan applications. But this need not stop you buying your dream home or an investment property. Many lenders offer low-doc loans for self-employed borrowers who can’t hand over payslips and […]

Loans for vacant land

Whether you are buying land for an immediate build, as an investment or for a ‘one day I will build and live here’ dream, a vacant-land purchase can be financed by a range of mortgages. If you are planning to build immediately, or at least soon, a construction loan might be the best option. Most […]

The RBA has left the official cash rate on hold at 1.5% (no change since August 2016)

The Reserve Bank of Australia (RBA) has made its monthly cash rate call, deciding to hold the official rate at 1.5% for the 11th month running. This decision was widely predicted with 34 out of 34 economists in a monthly RBA Cash Rate Survey forecasting the non-move. The general consensus seems to be that this […]

Prevent A Nasty Property Surprise

Home buyers and real estate investors are being warned to watch out for the hidden traps that may be lurking in their potential property purchases. Leaky showers, cracked ceilings and self-opening doors are among the signs pointing to bigger and more costly “nasty surprises”, the Association of Building Consultants says. Spokesman Chris Short says understanding […]

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (“LMI”) is one way of getting into homeownership without having the full 20% deposit which is typically required by most banks and financial institutions. With LMI, lenders may allow you to borrow a higher proportion of the purchase price, allowing you to purchase a property with a smaller deposit than would otherwise […]

The RBA has left the official cash rate on hold at 1.5% (no change since August 2016)

In a move that was widely predicted, the RBA decided to maintain the current official cash rate at its record low of 1.50 per cent. The cash rate last moved in August 2016, ticking down. As lenders continue with their out of cycle rate increases and with the growing probability that the government’s bank levy […]

Five Things First Home Buyers Need to Know

First Home Buyers, before you decide to purchase your first property there are a number of things to consider, including your current personal circumstances and financial status. Think about why you want to buy a home Do you want to live in it or will it be an investment property? This can help determine the […]

The Pros and Cons of investing in Commercial Property

The debate on whether it’s better to invest in residential over commercial continues to divide investors. Proponents of investing in residential say it’s the least risky option, while those who are in favour of commercial would argue that commercial is safer due to its cash flow potential. Many investors of course don’t choose between the […]