Have you ever found yourself undone by a wrong choice of property location or by a counter-cyclic investment? Well! If you have been long in the game, you would have found yourself inconvenienced by such gaffes sometime or the other. This makes it my duty to make the newcomers more aware of what lies ahead. In this light, importance of the question “what makes a good investment property” cannot be overestimated. Can it be?
Tracey's Property News
5 Questions You Should Ask Your Property Manager
If you manage your property yourself, you will save on costs otherwise billed as “fee of property manager”. You will also be safe with the idea that your profits (and losses) depend upon your own diligence. Great!
However, the other side of the coin is that you will be personally attached to the property and in due course of time, the whole affair of management may become a stress-inducing exercise. Add to this any shortage of market or industry knowledge on your part- which is all too possible a case.
Are You Ready To Sit For A Finance Quiz?
A high number of Australian citizens are not paying enough attention to their finances and worse still; most of them are ignorant about basic aspects of finance. Michael Yardney for the Property Update throws light on an interesting survey (conducted by finder.com.au) which yields that at least 66% of Australians do not track their financial goals.
Revert Rate Is Crucial For Fixed Rate Home Loans
Finder.com.au warns borrowers who have sought fixed rate home loans. In an article for the Property Update, Michael Yardney (guided by the findings) cautions how the low fixed rates can entice you towards them only to fleece you with the very high revert rate once the fixed rate period ends.
Loans may revert to as high as 1 percentage point after the end of fixed rate tenure. Yardney quotes the example of the average three-year fixed rate loans which stand at 5.07%. It is still bearable once the rates revert to 5.51% after the stipulated three years. However, in many cases, as is witnessed for the 4 major banks, the rates revert up to 6.19%- now that is exorbitant!
You can read the original article here.
What do you make of the shrinking gap between fixed and variable rates? Do you take it as a sign of expected stability in interest rates?
John McGrath’s 7 Pearls From The Property Investment Oyster
In an article for the Property Update, Michael Yardney talks about 7 tips (read investment strategies) by John McGrath, offered by him on the Property Millionaires Tour. Here are the pearls for you:
Property Holdings Have Triggered Australians’ wealth
An article on the website Smart property Investment confirms that Australians have the highest median wealth in the world (A Credit Suisse report). This is due to the property holdings of Australian investors.
Barring Norway, Australia is at the top in terms of percentage of people investing in real estate. The median wealth of Australian adults stands at A$ 263,450. The trend fairly reflects on the availability of enormous land tracts in Australia. It is also suggestive of the high property prices in its urban areas.
Another piece of good news for Australians is that they have the highest number of people above the US$100,000 mark. They are second only to the Swiss in terms of average wealth.
You can read the original article here.
