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. […]
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 […]
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, […]
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 […]
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 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 […]
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 […]
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 […]
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 […]
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 […]