More often than not you’re better on a variable rate than a fixed. There’s a whole bunch of reasons why, ranging from things such as flexibility to exit costs. However that being said, the 3 year fixed rate currently on offer from some lenders is incredibly appealing, with many coming in below 6%.
READ POSTNot too long ago, local commentators were fretting about the state of the US economy and its fall from grace with global credit ratings giants as the government floundered unsuccessfully to make a dent in the country’s mounting deficit.
Recently though, economists have turned their attention to the ailing European markets where equities are spending more time in the red than the black and the critical funds borrowed by the banks to in turn lend out to consumers like us are showing alarming signs of drying up.
READ POSTWe had a representative from CBA in our office the other day who mentioned an interesting statistic; only 10% or so of the approvals they’re currently doing are for people purchasing property outright, including first home buyers, upgraders and investors. So what’s the other 90% of their home loan business consist of? Refinancing of course. Yes, there’s a swag of borrowers out there who are fed up with their current lender and are ready to jump ship for a better deal.
READ POSTMost property investors have all heard that buying in your own backyard has its advantages. For one, you know the area intimately and have a much better opportunity to learn the ins and outs when it comes to generating income from a residential dwelling – who is your target market when it comes to finding a tenant? What type of resale value can you expect from the area? What type of capital growth has the suburb delivered over the long term?
Yes, buying close to home certainly has its advantages and makes the all important research that goes into a successful property investment a lot easier.
READ POST