Many things have attracted our attention in the year 2014 (right up to 2015), and low interest rate has certainly been one of them. When the measure was first adopted, it was seen as a government gimmick to bring back the economy from the mining sector to the property sector. The gimmick worked and how! Over the course of 2014, the cash rate kept coming down and even beat the financial market pundits a number of times.
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The Effect of Economy on Property Values
In an article for the website Property Observer, Jonathan Chancellor talks about Glenn Stevens’ viewpoint regarding Sydney house prices and prevailing interest rates. The property values in the harbour city have already witnessed a hike of around 33% since the year 2012.
Fear of Overinvesting In Your Backyard
Investors in the property market can sharply shift from making one great investment to an erroneous one. The reason why they are prone to error is because this is a difficult sector to master, and a dozen errors are waiting to ambush your every move. I have talked distinctly and lengthily about many such errors. Let me devote some time to this one- overinvesting in one’s own backyard.
Does Proximity to Railway Stations Increase Property Values?
Eliza Owen writes an incisive piece for the website Property Update, wherein she asks if infrastructure is the bedrock which supports property values and raises them. Sydney is all set to be flooded with railway tracks spread across its length and breath. Come 2019, light rail will run through Chatswood and Eastern Suburbs.
Is Population Growth a Good Real Estate Indicator?
For the website Your Investment Property, Nila Sweeney weaves an article around the expert opinion of Jeremy Sheppard, creator of DSRdata.com.au. Sheppard believes that population growth is a property market indicator that misfires more often than not and this is because the indicator is often misinterpreted.
Possible Traps of Refinancing
In an article for the website Property Update, Andrew Mirams talks about the traps associated with refinancing. To define, refinancing is when you pay out the running mortgage with a new loan. There can be a variety of benefits of refinancing, including but not limited to, equity build-up and savings on mortgage payment. This, however, does not ward off the pitfalls, which Mirams discusses at length in his piece.
