For astute property investors who want to maximise value for money and a growing return on their investment it’s often better to buy a property in a neighbouring suburb close to suburbs that are experiencing strong demand and price growth.
Cashing in on “the ripple effect,” means where prices escalate in one suburb, once buyers are priced out of that area, they must consider neighbouring suburbs. The pressure on prices means that eventually prices in neighbouring suburbs will rise. Securing property in these neighbouring suburbs ahead of time means that investors can benefit from surrounding price growth.
Smartline mortgage broker Miriam Castilla, advised that first-home buyers should ideally be planning two years ahead of making the financial commitment to purchase a property.
First-home buyers will be ahead of the game when it comes to securing their own home if they understand the costs involved in purchasing a property, and are fully aware of the deposit and income requirements of banks and lenders. This will give them the best chance of obtaining a suitable home loan to finance the purchase.
Australian economists are voicing concerns that low interest rates have not led to growth in construction of new homes. The real result of low rates appears to have resulted in higher home prices.
Despite this, the Prime Minister Tony Abbott and Treasurer Joe Hockey have said the boom in property prices mean home owners have more valuable assets, reports the Australian Financial Review.
Well-known real estate author and property observer Terry Ryder, has regaled a report published in The Daily Telegraph regarding “an alarming number” of Australians having to forego their dream of owning their own home.
Ryder wrote that the article, which claimed that a growing number of Australians have given up on the dream of home ownership, forced to endure long-term rental situations and struggling to provide security for their family, is nothing more than scaremongering by misinformed journalists.
An Australian mortgage broker based out of Bankstown has pleaded guilty to making false home loan applications worth more than $3.8 million, reports the Property Observer website.
The false applications were made between July 2011 to January 2012 to two banks. Loans were falsely made out for ten people with a range of loans from $196,000 to $640,000. Full documentation supporting the false applications included employment histories, tax returns and bank statements.
Australian consumers were reminded how easily they can slip-up and lose at lot of their home loan borrowing power by Heidi Armstrong of non-bank provider State Custodians, in her piece published on the Property Observer.
Armstrong said most Australians don’t realise how important their credit rating is, and they don’t know how it a credit rating is calculated.
The investments of thousands of Australians in the Gippsland region could be lost as a result of the impending liquidation process, following the order placed on a major local mortgage fund.
The $150 million in assets held by Gippsland Secured Investments (GSI) have been frozen. The company’s rapid demise is likened to what happened with Banksia Financial Group in 2012, and that implies many people will lose their investments, according to Sarah Dankert of The Australian.
The chief of Australia’s largest bank has stated he is not worried about whether the housing market will respond to low cash rates. Rather, he believes Australia’s economy is suffering from low confidence, as reported by Business Day.
Ian Narev, CEO of the Commonwealth Bank, has said he believes there will be another cash rate cut by the Reserve Bank of Australia (RBA). Narev said he has full confidence in RBA governor Glenn Stevens.
The growth in the value of home loans and business loans in Australia is only just above historically low record rates, as reported by Pat McGrath of ABC News. This is even as official data shows a slight increase in recent demand for credit.
Shane Garret of the Housing Industry Association said cuts made by the Reserve Bank of Australia to the official cash rates have resulted in the slight improvements currently indicated by the official figures.
A number of new bond strategy offerings in June were seeking to provide positive absolute returns in contrast to traditional benchmark-aware bond funds, according to Money Management.
The new offerings claimed to provide absolute returns in an effort to find a solution for changing market conditions, irrespective of market performance.