Big increases to rent are unlikely to be achieved inexpensively, but there may be some things you can do to maximise your return that won’t cost you the earth.
If you’re already actively looking at properties then I’d suggest now is definitely the time to meet with a mortgage broker. They will help you get all your ducks in a row so when you do find that perfect place you’re all set and ready to make an offer.
I am a firm believer in paying off as much of a home’s mortgage as possible, however if you have other debt on a credit card or a personal loan with a far higher interest rate than your home loan, then it might be worth considering paying down those debts first, or managing your bills with a debt consolidation plan.
Like you, a lot of Australians will probably have some life insurance in super, but research has shown that the average person is only covered for 14% of what they need. This means that if something does happen, the people left behind are going to have to cover that gap.
With property prices sky high in and around many capital cities, and lots of changes happening in investment lending, getting a foot on the property ladder is becoming more difficult for some, depending on what and where you want to buy.
If you have a fixed rate loan then an increase can’t be made until the fixed rate period comes to an end, so you are protected against any rate change for the fixed loan term.
I’ve had a fixed loan for three years and in that time interest rates have come down a lot, so I am nervous about getting another fixed interest rate in case the same thing happens! What do you think?
There are some basic strategies that can be used to help you pay off your mortgage faster. Simple things like tweaking your repayment frequency or paying a small amount extra in each repayment can make a big different to the length of your home loan and how much interest you pay overall.
Lending to investors has been growing at a much higher and faster rate than any of the other major categories of credit. Over the 12 months to March, investor lending grew at 20.9% for the year compared to owner occupied growth of 3.3%.
There’s always a lot of speculation over interest rates, and my friends like to debate the chances of another interest rate cut. What do you think; is there another interest rate cut coming?