Most homeowners and investors are long-term borrowers. That is, they will have a mortgage for many decades. We must realise that over many decades, there will be periods where interest rates will be higher than the average and vice versa. The average standard variable rate since 1959 is 8.20% p.a. Noting that most borrowers enjoy…
Now more than ever there is more information about property investment available. Much of it is online and in many cases, it’s mostly untested. Any Tom, Dick, or Harriet it seems can create an “expert” persona, perhaps because they’re good with words or have a couple of property wins on the board, probably solely due…
We have plenty of things we could call a crisis, but suggesting we have a housing supply crisis isn’t one of them. Here’s why. The Law of Supply and Demand First, recall that the immutable law of Economics 101 is called “the law of supply AND demand.” The two work together. In periods of high…
You’re ready to take the next step and buy your first, or buy another, investment property. And you’re looking for the best Buyer’s agent or Buyer’s advocate around in order to make your investment property purchase. Naturally, among all your research for the best Buyer’s agent for the job, you’re probably doing a lot of…
Inflation reduced from 7.8% in the December quarter to 7.0% in the March quarter, which was good news, of course. Many economists believe that inflation (CPI) will continue to decline over the coming months. However, history tells us that when inflation has exceeded 8% (like in the US last year), it has taken over a…
We know Warren Buffett made his fortune in the stock market, and in many respects equities and real estate present very different challenges. But let’s take a brief look at what parallels property investors might be able to draw from the psyche and investment approach of the world’s most famous and successful investor. It’s fairly…
Superannuation is a smart and simple way to save for retirement – the more you put into your superannuation, the more you have for retirement. However, super is a long-term investment, starting from when you start your first job and only accessible once you reach retirement age. Your employer contributes under the Superannuation Guarantee scheme…
Finances across Australian households remain resilient in 2023, even despite the rising cost of living and pressure on mortgage holders as interest rates continue to climb. After falling 9.1% in the 10 months to February 2023, it is becoming increasingly clear the housing market has moved through an inflection point, posting a number of consecutive…
Have you considered refinancing your loan? Maybe you’re wondering how much borrowers need to pay to refinance their home loans? According to Canstar, the average cost to refinance an owner-occupied home loan in Australia is $803. This includes fees such as the discharge, application, valuation, documentation, legal and settlement costs. Canstar pointed out that to…
The June cash rate decision doused hopes for many Australians that rate hikes were nearing an end. It prompted the major bank economists to reset their forecasts for the terminal cash rate to at least 4.35%, dragged on consumer sentiment, and may take some steam out of the recent housing market recovery. Of the 400…
