Venessa Paech, in an article for the website realestate.com.au, observes how fixed rates have picked up over the last couple of months. More than 50% of four year and five year fixed rate loans have witnessed a hike. Nearly one-third of three year fixed rate loans have also seen an upward adjustment. Interestingly, one year fixed rate loans have held their ground or have even fallen by whiskers.
Such adjustments are likely to precede cash rate hikes. Buyers are advised to see the larger picture and budget for interest rate hikes when they calculate their mortgage liabilities. Paech gives an instance where she says that a hike of one basis point (0.25% percentage point) can increase the monthly mortgage by $45 for a $300,000 home loan.
You can read the original article here.
Do you think splitting the loan liability between “fixed rate” and “variable rate” can work better?
New dwelling constructions have got a shot in their arm, thanks largely to NSW and WA. At a time when chronic housing shortage is a topic for heated debates, an 11% hike in dwelling constructions nationwide is surely a cause for celebration. Venessa Paech for the website realestate.com.au observes the trend.
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?
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!
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.
