Overseas buyers may elbow us out of the property race and we are likely to become a second-show in our own country. Has this statement got any truth in it? If it is true, it’s cause for serious concern and if it’s not, it is time the myth got busted. We better find out!
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Australians Ahead of their Mortgage Repayment Schedules
Things have certainly become better for average-earning households looking to borrow money for their homes. The pace at which they have been repaying the amount today places them really well with the repayment schedule. This, in a good number of cases, also provides them with a mortgage buffer sufficient enough to see them through periods of low income or unemployment.
What Errors Do Landlords Make?
You can go wrong with your ambitions of positive cash flow despite sealing a great investment deal and procuring a wonderful tenant. Often, the error is a miniscule one but it costs a fortune. Let us try and figure out a few of them.
Hidden Costs Attached to Purchasing a Home
There are costs other than the cost of property when it comes to the buying bit. Having the savings deposit with you may be 20% of the battle won but a lot still remains to be contested. For a start, how about the Lenders Mortgage Insurance you pay for the property to insure the lender against default and what about the Stamp Duty, which anyway is quite steep and way above the global average in our country.
Do Affordable Quality Homes in Sydney Still Exist?
The present stage of the property cycle presents an interesting scenario. The first home buyers are all but elbowed out from the race despite low interest rates. This has got a lot to do with the uncertainty in the job market, not-worthy-talking-about employment rate and abysmal rate of growth in income in relation to growth in property prices. So, once the FHBs are out of the race, the property marathon gets constricted between owner-occupiers and the investors.
Real Estate Supply Not Keeping Pace with Demand
We are not closing on a bubble! No we aren’t! Any impression of the same can be put down to lack of supply which is driving domestic real estate prices crazily. It is true that barring Belgium we are the country with highest price levels when you measure prices against relative entities like rent and income.
