How important is land when buying apartments?

It is one of the so-called “golden rules of property”; the driver behind the price increase of any property is land value.

Mark Twain famously summed this up when he wrote that land is the best investment because “they are not making any more of it”.

That seems straightforward enough, but does this golden rule work when it comes to investing in apartments?

What is land content value?

According to this theory, the capital growth driver of an apartment is driven by the value of the land embedded in its price.

The mechanics of this approach are simple: if a complex of 20 units sits on land worth $4 million, each apartment has $200,000 worth of land value and if a unit sells for $450,000, its “land content value” is 44%.

Many property advisers will tell you to aim for an apartment with content value of at least 40%.

If you are an owner of a unit in areas like Brisbane’s Southbank or Docklands in Melbourne, this theory may come as a bit of a shock.

It is quite common for these owners to be told via council or bank valuations that their land content value is as low as 5%-15%.

Does that mean these properties will only experience low growth?  Well no, not necessarily.

It’s about market demand …

If high land content theory was an iron law of real estate, then many apartments in New York, Paris or even Sydney’s Potts Point for that matter would have proven to be a terrible investment.

Yet in many of the world’s most expensive cities, high-density units with low notional and values are the norm.

The reason units in some of these areas have had above average growth comes back to that other real estate rule: the mechanics of supply and demand.

If a market in a high-density location, like Monaco or central Sydney, has 4,000 apartments for sale and 6,000 interested buyers, the price of units will rise even if the notional land content value of these units is low.

In these markets, it’s the competition between buyers for “available space” which better explains what is really going on.

… and market supply

What happens when we reverse the equation: more units for sale than interested buyers – will values will stagnate or fall?

The short answer is that they can. We’ve seen some instances of this play out over the past 20 years in cities where there has been a big increase in high rise living. When the numbers of apartments for sale outpaces the numbers of buyers, prices
have stalled or fallen.

The problem here is not the low notional land value of units; it’s usually a case of development running ahead of demand. When you look at some of these precincts years after that over-development phase has ended, in many cases the sale prices of units is growing again.

Where it holds true

In suburbs surrounding most of our capital cities, detached houses are the dominant property type with just with a sprinkling of apartment complexes. In these markets, land content theory is a good guideline.

But in areas increasingly dominated by high and medium-density living, land content theory is not that helpful.

In these areas it is the “competition for available space” which is a much better guide.

  • Paul Thornhill (realestate.com.au)

Too loyal or time-poor for a better rate? Problem solved

Another month, another rate cut. Finance can be so tedious.

That is until you realise it could mean more money in your pocket. But how?

For many, matters of personal finance are so dull and/or difficult, they are immediately filed in the too-hard basket.

And for their trouble, or lack thereof, these people are often slugged with a ‘lazy tax’ – the price paid for staying put.

Loyalty too, or simply being time-poor, can also be offences punishable by debt in the world of finance.

But it doesn’t have to be this way.

A 2018 Australian Competition and Consumer Commission (ACCC) report showed that new borrowers with an average-sized residential mortgage paid up to $850 less a year in interest than existing borrowers with the same lender.

However, despite the apparent benefits, actively ensuring an interest rate remains suitable is a practice that continues to elude many.

Fortunately, there are people out there whose job it is to assist in this process.

Mortgage brokers can play a vital role in assisting borrowers through the process of ensuring their mortgage is competitive.

We at Brickhill Financial Solutions in North Sydney are just a phone call away and are ready to guide you through the task of refinancing your loan.

What’s your home really worth?

Type your address into any number of free ‘what’s your home worth’ websites and an approximation of your home’s market value pops onto the screen in the blink of an eye. Easy.

But no matter whether the figure you see sends your heart soaring – or sinking – take a minute to consider how accurate that value could be. What about the bathroom upgrade?  The new kitchen? The barbecue area? All that money has to account for something.

Unlike other assets like your super, your home doesn’t come with an annual statement that shows what the place is worth at any point in time. But there are times – like when you need to refinance your home loan, that it can be extremely helpful to have a reasonable idea of your property’s market value.

There is a range of valuation options to choose from beyond the freebie websites. Each offers varying degrees of accuracy, and as is often the case, you get what you pay for.

A market appraisal

One cost-free option is to have your home assessed by a local real estate agent. This gives you the benefit of a local expert walking through the property in person. The downside is that a market appraisal is not the same as a formal valuation, and the final figure could be bumped up if the agent thinks a listing could be gained.

Automated valuation models

Further along the scale are ‘automated valuation models’. These are a user-pays service usually provided by property research companies.

For a small fee, you provide your address, and a value for your home is computer generated based on recent sales figures in your neighbourhood.

It’s a budget-friendly option though the figure you end up with is based on a wide number of previous sales – and the homes sold may be nothing like your own.

Electronic valuation

If you’re willing to pay a bit more, a desktop assessment or ‘electronic valuer review’ can crank up the accuracy factor.

An estimate of your home’s value will be provided by a property research firm based on recent local sales data backed by either a current photograph of your home or a phone discussion between you and a valuer.

This type of valuation lets you provide more detail about your home but without a physical inspection of the place the valuation is far from watertight.

Go pro – call a registered valuer

If you’re looking for a rock-solid estimate of your home’s value, the most accurate (and costly) option is to have your home checked inside and out by a registered property valuer.

These guys are experts, and the valuation you receive is based on local sales results combined with an analysis of current market conditions, reviews of any proposed council developments in your area and of course the quality of your home (so it’s worth giving the place a spruce up before the valuer arrives).

The figure you will end up with is an estimate of what a willing buyer would pay for the property on the day of the valuation. Sounds fair.

Do you really need to pay for a valuation at all?

You can expect to pay upwards of several hundred dollars for a formal valuation of your place. But here’s the thing. While it is always interesting to know, or at least have a reasonable idea, of your home’s value, chances are you may not need to pay for a valuation at all.

If you are refinancing or topping up your loan, it’s likely the lender will conduct an independent valuation of their own.

Rental yields – what you need to know

Rental yield – essentially the rate of rental income returned against the costs of an investment property is a great indicator of a property’s investment potential. But you need to keep things in perspective when you factor it into your decision to purchase property.

Calculating rental yield

A good first step in examining rental yield’s impact on the investment potential of a property is to recognise that there are two types of rental yields, gross and net, and they are calculated differently.

In property, gross rental yield is calculated by dividing the annual rental income you receive by the property value, and then multiplying this figure by 100.

For example, if you collect $20,800 rent annually ($400 per week) and your property value is $450,000, it will look like this:

$20,800 (annual rent) / $450,000 (property value) = 0.0462

0.0462 x 100 = 4.622

The gross rental yield is therefore expressed as 4.622%

Presumably, the higher the rental yield percentage, the better, as it suggests a more efficient return on your investment – more bang for your buck.

Knowing a property’s gross rental yield is a quick way to make a rough comparison of how its rental returns fare with others in an area, but it does not give a full picture of the investment potential a property offers.

But the gross rental yield can be misleading.

Net rental yield, on the other hand, offers a more detailed picture of a property’s rental return. To calculate net rental yield, you also factor in the costs and expenses you incur in addition to your property’s value.

The list of costs and expenses is extensive and can include stamp duty, legal costs, building inspections and recurring expenses such as maintenance and repair work, council rates and loan interest repayments.

If you deduct $5,000 for annual costs and expenses from the annual rental income in the gross rental yield scenario in the example above, the net rental yield is 3.5%.

Of course, the credibility of net rental yield is dependent on the accuracy of assumptions you make about the cost of repairs, the property’s market value and the property’s occupancy rate.

A building inspection might reveal dormant issues that will drastically increase future repairs and maintenance expenses. Rental yield might be high for those properties occupied in the neighbourhood, but that doesn’t mean the property you have in mind will be occupied all year-round – vacancies in one street can vary from the next, too.

Rental yield is only one factor to consider

Calculating rental yield should only be part of your assessment of a property’s investment potential. To do due-diligence and ensure you’re making the right investment, it’s also important to consider the resale value, investigate market reports, demographics, sales and rentals history in an area, planning and infrastructure, and the story of the building.

Brickhill Financial Solutions can help you further evaluate the benefits and the issues to consider when purchasing your investment property in Sydney.

Stamp duty reform, will it happen?

The conversation around stamp duty reform has gained momentum in recent weeks at both the state and federal level, with everyone from RBA Governor Phillip Lowe to Treasurer Josh Frydenberg to state politicians suggesting that land tax reform may have a role to play in Australia’s post-COVID economic recovery.

Reform could significantly aid homebuyers through reducing the amount of money they need to have saved up front, as they’re not able to borrow against stamp duty but instead must pay it in cash.

As reports continue to swirl that an overhaul to land tax may be imminent, Australian Broker unpacks what that change might look like. 

The current situation

While discussion around stamp duty reform swells and ebbs on a fairly regular basis, when it comes down to it, it’s widely viewed as “untouchable”– especially in Victoria where it makes up 40% of the state’s revenue, according to Damien Roylance, managing director of Melbourne-based Entourage.

“We’ve always talked about stamp duty reform, but the thing is the percentage of stamp duty hasn’t changed since the ‘70s when the median house prices were 30-odd thousand. It was never adjusted down as we moved into the 2000s and house prices obviously increased,” Roylance said.

Pre-COVID, it was projected that stamp duty would generate $9.5 billion in revenue for Victoria this year alone. 

However now, with the hope of reform feeling more like an actual possibility in recent weeks, buyer behaviour is being affected.

Roylance explained, “A lot of agents are screaming ‘Just make a decision on it!’ because if people think reform is coming, they’re worried they’re going to hold off buying. With a million dollar purchase, which is not uncommon these days, the stamp duty is $55,000. If people think change is coming, why would they buy now when they could save that much down the line?”

Possible approaches to the reform

Even with his pragmatic acknowledgement that a reduction in tax in one place almost surely equates to an increase in tax elsewhere, Roylance has considered several alternative structures for stamp duty which would take pressure off owner occupiers without depriving the state its revenue.  

“Paying stamp duty over a deferred period, say 10 or 20 years, would be a lot better for a lot of people from a cash flow point of view. Rather than paying $50,000 in one go, a homebuyer might instead pay $2,500 a year for 20 years,” he explained.

Roylance also outlined a credit system which would help address the way in which stamp duty sometimes discourages people from transacting more.

“Say you buy a home for $1m dollars, and you pay your $55,000 stamp duty. Then you upgrade to a home for $2m in the next few years, but you’re given a credit for the first move you already paid for,” he explained.

“The buying and selling of property is so expensive. If you’re able to have a credit system like this, young people moving up the property ladder can pay their stamp duty along the way. So when they buy their big home for $2m or $3m, they’ll have already paid a big chunk of that tax. 

“There’s a lot to flesh out there, obviously, but a credit system could help prevent people from having to pay it all again.”

While Roylance doesn’t necessarily feel stamp duty should be lowered or altered for investors, he does see significant room for improvement especially as it pertains to helping first home buyers into the market.

“The first home buyer stamp duty concession is pretty low, tiering between $600,000 and $750,000 in Victoria, but we have first home buyers buying for over a million. Times have changed; they’re now in their thirties, just got married and they’re not looking to buy a $600,000 apartment anymore,” he said.

What we’re most likely to see

While it’s interesting to model creative solutions which benefit both homebuyers and the government, tax reform is rarely radical.      

“Everyone expects the change to come in the form of a land tax increase,” said Roylance.

However, the managing director has also seriously considered the possibility that, despite the duty dominating the discussion of late, no change will be made at all. 

“Brokers aren’t seeing too many people drop off at the moment. Stock levels have been really down, so houses price haven’t really lowered. We’re seeing properties snatched up in days rather than weeks,” he said.

“If property prices are holding strong and people are still buying, do they need to do this? Obviously, reform is being considered as something to spark the economy and get things going again, but if it shows signs of life, why would they take away such a huge earner for the government?”

-By Madison Utely (AustralianBroker)

Person filling in forms

A Guide to Applying for Your First Home Loan

Applying for a home loan is one of the most significant decisions that you can possibly make in your lifetime. The process involves many important considerations, and you need to be mindful of each one so that you can secure a suitable home and, more importantly, a stable financial future.

Out of the many aspects involved in applying for a home loan, perhaps one of the most crucial is the first. That is, how much can you actually borrow? The answer to that questions will determine what types of homes you can afford, the payment terms you will have to abide by, and many other concerns that will affect your life.

To give you a better idea of how to answer this question, we’ve listed the different factors that will affect it. Additionally, we’ll guide you through the early stages of your home loan application so that you can make the best decisions possible.

How Much Can You Afford?

There are several factors to consider when taking out a home loan. These include, but are not limited to, the following:

• Your Income and credit history

• The size of your deposit

• Your employment history

• Your residential history

Depending on your status, you may be able to borrow an amount that exceeds what you can comfortably afford. However, you must be careful so that you don’t inadvertently set yourself up for financial difficulty.

Here are a few ways you can ensure that doesn’t happen:

Know the Upfront Fees

Before you start your regular mortgage payments, there will be upfront costs that you first need to deal with. In addition to the deposit, some of these fees include application fees, stamp duty, and settlement costs. 

Depending upon your circumstances some of these costs may be mitigated or reduced via government sponsored deposit schemes or stamp duty waivers.

Knowing how much you need to pay upfront will help you plan your finances accordingly. It will also help you identify the size of the mortgage loan that you can comfortably afford. If you struggle with the upfront fees, for example, then it would not be a good idea for you to apply for a large mortgage. 

Know Home Ownership Expenses

When you have the upfront costs sorted out, it’s time to think about the expenses when it comes to owning a home. These will go beyond your regular mortgage payments. 

You will also need to pay for homeowner’s insurance. This is essential to keep your investment protected should something bad happen to it, such as earthquakes or floods. Council fees and utilities, such as water and electricity, should also be considered because these are recurring costs that come with owning a home. If you purchase a home unit, then there will also be quarterly body corporate strata fees.

Whilst enjoyable to many, there are also costs associated with maintaining a garden and home improvements. (Plan for a few trips to Bunnings!)

Determine the Lifestyle That You Want

Taking out a home loan means that you will probably need to make certain lifestyle changes to afford your investment. While owning a home can be a great boon to your life, it is not without its complications.

For one, you may need to cut down on your spending in other areas to pay off your loan. It’s all a matter of the kind of lifestyle that you wish to maintain when you get a house for yourself. If the sacrifices are going to be worth it, then you can’t go wrong with buying a house. On the other hand, if you’re not ready to say goodbye to your shopping and eating out habits, then you might want to rethink your decision. 

Evaluate Your Self-Discipline

When you have decided on the kind of lifestyle that you can be comfortable with, you need to evaluate your dedication and self-discipline towards maintaining a home. Ask yourself whether you are ready to commit to your choice and make the necessary changes needed to follow through.

Conclusion

When it comes to buying a house and taking out a home loan, it’s all a matter of your financial capability and your overall sense of responsibility. Before you take that step, evaluate where you stand financially and how much you’re willing to change in case you need to. 

Do you need help with your home loan? A reliable mortgage broker in North Sydney can help you. Here at Brickhill, we can help you get the right amount of mortgage loan that will suit your needs!

house with house keys

4 Signs It Is Time to Refinance Your Mortgage – What to Know

You have repaid more than half of your loan. You think your performance in loan payments and your current financial situation can help you get a better term. They say refinancing has money-saving features. Should you trust your gut and do it? When is the best time to get refinancing? Is there really a best time?

What does refinancing a mortgage mean?

Refinancing means getting a new mortgage to replace your current mortgage. It is often done to get a better interest term and rate compared to the original loan. In this process, the first loan has been partially paid off, so the second loan will pay off and replace the remaining balance. 

Here are some of the possible advantages if your application for refinancing is approved:

  • Reduced monthly payments
  • Lower interest rates
  • Shorten the loan term
  • Cash-out from large purchases
  • Change in the mortgage lender
  • Debt consolidation 

Similar to your first loan, getting a refinance will require you to go through the loan application process again. It can be with the same lender or from another provider. Like any other loan application, there are certain criteria you need to meet first. If not, the second loan application can be risky for you.

Here is how to know if it’s the right time to get a refinance for your mortgage:

1. Your lender might increase their interest rate

Interest rates are difficult to predict, but if you believe that your current money lender has the potential to increase their interest rate in the near future, it could be the time to look for other options. Keep in mind that this chance is subject to change based on the different economic conditions and trends. Because no one can predict the future, the best judgment is necessary to back up this reason. You must also need to remember that the next lender may also increase their rates. 

2. Your existing interest rate is no longer competitive

If you see that the current interest rate is no longer working for you, maybe it is time to get a reassessment. If your application for refinancing is approved, you have the chance to lower your interest charges and monthly repayments. To gauge the current interest rates on the market, seek assistance from your financial advisor or mortgage broker, or refer to home loan comparison tables you can find online. 

3. You have a secured job

When you have a stable and secured job for at least two years, you have bigger chances of getting approved. It is proof that you have a steady income and are capable of paying off your mortgage in the term discussed. You can take advantage of this  since you are considered a low-risk borrower, you are a strong candidate for refinancing.

4. You can consolidate your debts

One way of minimising your repayments is by consolidating your personal debts into your mortgage and making sure to pay them as early as you can. When you centralise your debts with a refinance, you pay less interest. A refinance, if approved, can help lower your monthly payments. If you need to reorganise the way you pay off your mortgage and other debts, getting a refinancing might help.

Conclusion

Your current financial and personal situations are the important factors to study when thinking of deciding to refinance your home. To help you find the right timing and the best financial decisions, talk to an experienced mortgage broker or financial advisor.

Need a financial solution to refinance your home loan in North Shore? Call us at 1300 252 088 to get your desired financial outcomes today!

new home for sale

4 Practical Tips for Finding the Right Mortgage Broker When Buying a Home

Anyone will tell you that buying a house is truly a life milestone. As such, it’s not a matter to take lightly. When you are finally ready to buy property, you need to make the right decisions. Additionally, you’d want the process to go as smoothly as possible. A mortgage broker would be helpful in times like this to help you get the best mortgage loan options and rates to suit both your budget and your needs.

Do You Need a Mortgage Broker? 

Make no mistake, home buying can be done completely on your own. That is, if you have plenty of time to spare and you don’t mind poring over piles of paperwork. However, if you don’t have the time and you would rather have an expert help you get the best mortgage rate, hiring a mortgage broker is the best course of action.

There are a lot of mortgage brokers out there, and it can be overwhelming to choose which one to hire, especially if it’s your first time doing so. To help you find the right one for you, here are some tips to consider: 

1. Check Your Financial Status

Before you purchase a home and actually look for a mortgage broker, you need to assess your financial health first. If you have a poor credit score and you have employment issues, then you might not be a good candidate to get a mortgage. Should you talk to a mortgage broker that says you’re qualified even though you believe you’re not, you might want to think twice. 

When it comes to the home-buying journey, it’s essential to have an honest broker. An honest mortgage broker will set realistic expectations for you, especially if you don’t have a desirable financial status. 

2. Consider the Fees

Most mortgage brokers do not charge fees. They are paid by the lender and only if the loan proceeds. By agreement they may charge fees. To help you make the right decsion it is essential to confirm if there are any fees to be paid. 

3. Know Which Lenders They Work With

There are some lenders that do not work with brokers at all and instead rely on in-house loan officers. As such, you need to ask a potential broker which lenders they work with. This will also help you determine how vast their network is. It’s best to work with a broker that is associated with a lot of lenders because you will be potentially be presented with many more options, helping you get the best rate. 

4. Ask For References

Before you decide to work with a mortgage broker, another thing that you should do is to ask for references. You can ask about their previous clients and see if you can speak directly to them. This way, you will be able to determine if the mortgage broker is a reliable one. It is also helpful to look at the testimonials they may have received.

Ask their previous clients important questions, such as how the broker communicated with them throughout the process or how the broker handled hiccups along the way. 

Conclusion

There is nothing wrong using a mortgage broker—in fact, it will give you an advantage in the housing market, as long as you know how to find the right one. Hopefully, following the tips we’ve listed above will lead you to the right mortgage broker, making the home buying process that much easier for you.

At Brickhill, we help individuals and businesses find the right property finance in North Sydney, helping you get the house of your dreams with the best rates. Contact us today to learn more!

new home

5 Basic Home Loans Every New Homeowner Should Know About

Purchasing your first home can be exciting but will usually require that you take out a mortgage loan. In your lifetime, a mortgage loan can become your largest debt, so understanding the process is critical. 

If you’re looking to finance a home loan in North Sydney, or purchase a home or a investment property in the North Shore or other parts of Sydney here are the basic kinds of loans you’ll want to consider. 

1. Fixed-Rate Loan

What it is: one of the most straightforward home loans on the market, it offers the same interest rate for a fixed period within the timeframe of your proposed loan. For example, you may have a fixed rate of 3.6% over 5 years. After this period, the mortgage will revert to standard variable rate at the discretion of your lender. 

When you should use it: this home loan is best for budgeting, as you can prepare to pay the same amount every month or fortnight. If interest rates rise above your fixed rate, you will not be affected either. However, take note that these loans may not offer additional repayments or a redraw facility. Conversely, if rates were to drop, you would still have the sae fixed rate.

2. Variable-Rate Loan

What it is: as the Reserve Bank of Australia (RBA) alters its official cash rate, your interest rates with this type of loan may rise and fall along with the market. Variable-rate loans come in two types. 

  • Standard: these carry flexible features such as offsets, redraws, additional payments, and a split loan. They are usually come with an annual 
  • Basic: these come with cheaper rates and lower (or no) fees but without the flexibility that the standard variant offers. 

When you should use it: basic variable-rate loans are ideal for first-time buyers who are most interested in lower rates. If you have room for flexibility, you can also consider a standard variable-rate loan. 

3. Low-Doc Loan

What it is: low documentation loans have higher interest rates than normal and policies can vary from lender to lender. They don’t, however, require borrowers to submit any proof of income. If you’re in need of advice from a mortgage broker in North Sydney, don’t hesitate to give us a call.

When you should use it: these loans are ideal for self-employed borrowers who may have trouble proving their income and assets with set documentation in a timely manner. 

4. Honeymoon-Rate Loan

What it is: known as an introductory rate, the honeymoon-rate loan is available to first-time borrowers with a reduction off the standard variable rate for a certain period of time. Honeymoon rates can either be variably discounted or at a fixed discounted rate. 

When you should use it: a honeymoon-rate loan can help secure your financial capabilities during the early stages of homeownership. 

5. Construction Loan

What it is: this is a progressive loan that is drawn in stages. Lenders may give portions of your loan amount progressively. Here’s what you can expect from a construction loan.

  • Stage 1: this will cover the building of the base of your home, which includes the foundation, ground levelling, and plumbing. It may take up 10% of your contract over the span of about 2 weeks. 
  • Stage 2: 15% of your contract will cover the framing of your property and will take up to a month.
  • Stage 3: this is the bulk of your contract at 35% and will be used to build external walls, doors, and insulation. This takes up to a month to complete.
  • Stage 4: this part of the loan goes towards fixtures and fittings such as shelves, cabinets, internal doors, and tiles. This takes up about 20% of your contract and also covers plumbing and electrical finished. 
  • Stage 5: the remaining 15% of your contract, this stage of the loan covers finishing touches such as painting and polishing. 

When you should use it: the construction loan is perfect for homeowners looking to build from the ground-up. 

Conclusion

When paying off your mortgage, it’s important to structure a financing program that works best for you and your family. 

With us at Brick Hill Financial Solutions, arranging to fund your home is our job. For home loans in North Sydney and surrounding suburbs, give us a call!

The Impact of COVID-19 on the Property Market and Lending Environment

Whether you’re a first home buyer, or planning to upsize, downsize or invest, the COVID-19
coronavirus will have caused some uncertainty over your plans.

The Lending Environment

Whilst there has been some change in the way we inspect and purchase properties on-line,
banks have also amended their lending criteria and are focussing on the stability of a
borrower’s income, choosing to shy away from those employed in ‘high-risk’ industries. Some lenders have also dropped the maximum loan-to-value ratio (LVR) they will consider.


In addition to specific industries perceived to have higher risk (hospitality, retail, tourism) the
lenders are reviewing the type of income borrowers are earning and are far less likely to rely
on unstable income such as temporary, casual, overtime, bonuses or season income.


For self-employed borrowers much more detail is being requested and up to date
management accounts and BAS statements are required and the financial results of the 2019
tax year are taking a secondary position.


In some cases, borrowers whose loans were pre-approved before COVID-19 are being
requested to produce more recent payslips to demonstrate that their income has not been
affected.


For investors, rental income may be discounted if a property lacks a paying tenant.

So, what should buyers do?

Whilst there has been some reduction in prices and the number of properties being offered for
sale, there has not as yet been a dramatic change in the property market, due in part to:

  • The RBA cutting the cash rate twice in March 2020
  • Banks coming up with policies that am to assist with loan payment, including
    mortgage relief, – ‘freezing’ repayments for 6 months, offering fixed rate home loans,
    refinancing, and extending the mortgage term without penalty.
  • Investors opting to invest into the property market, which is currently seen as less
    volatile than the share market.
  • Government financial stimulus packages, which is allowing people to access some
    funds to tie them over in the short term.


Given the current low interest rate environment, and provided your income and job remains
stable, now may be a good time for refinancing or to make a purchase. Rates are at all-time
lows (particularly fixed rates).


Basically, if your income is in any way uncertain you should consider putting your property
buying aspirations on hold, or at the very least talk to your employer before investing.
On the other hand, if your income is assured then the next few months are likely to be one of
the best times to buy.