With the recent hikes in fixed and variable rates by the major banks many property investors are wondering whether it’s a good idea to fix the interest rate on their loans. Below are 11 points for you to consider when contemplating the fixed versus variable dilemma: Will you lose sleep if interest rates rise? There are typically…
The ALP’s proposed ban on negative gearing has been well publicised and debated. However, its proposed changes to Capital Gains Tax (CGT) have received far less attention. I suspect that this is because investors tend to overestimate short-term consequences and underestimate more significant long-term outcomes. But, since most of us are long-term investors, I’d suggest…
No one wants to buy at the peak of the property market! Imagine if you buy a property and then a month later property values fall and it takes more than 2 years to recover to the amount you paid for it. That two years of holding costs (interest) for no gain. Would you kick…
Are your mortgages liabilities? That is, do you view them as negative things that you would like to eliminate if you had the money? If so, I challenge you to think of mortgages as an asset. In fact, doing so could dramatically improve your financial success. In the olden days… Decades ago, the clear majority of people…
Parents always want their children to have the best education. For some people, that means sending their kids to a private school. Of course, private schooling can be expensive and can have a big impact on your cash flow. But I’d like to suggest that the ‘cost’ is a lot more than the initial cash…
Late last year the Prime Minister announced that the “Government will establish a Royal Commission into the alleged misconduct of Australia’s banks and other financial services entities”. You might think this is good news, but I expect that this will be yet another waste of taxpayers’ money (and time). The role of banks has changed…
My sons will turn 10 in January next year and I worked out the Melbourne median price could be circa $1.4 million by the time they are 20 years old. This means that a 10% deposit plus stamp duty will cost them over $200,000! Where will a 20 year old get that sort of money…
