Given that the average home value in Australia is $570,249, it’s unsurprising that most people need a home loan to finance their property purchases. As such, securing the right property financing arrangement is critical to a successful investment. To help you out, we break down exactly what you need to know about mortgage loans in Australia below.
If you’re thinking of investing in residential property, Australia represents one of the best markets in the world—as long as you do your research and are as careful as possible when choosing the right area to invest in. Yet, there is much more to pay attention to than simply the physical location in property investment. You need to take other factors into consideration before you pull the trigger.
Time marches on and those celebrations from the last New Year’s Eve may now be just a dim and distant memory. Unfortunately, the resolutions made during those moments may also have fallen by the wayside as the pressures of everyday life come to the fore. However, some of these resolutions may have been very important and designed to make significant improvements in your life, so they must be prioritised as soon as possible.
When investing in property, one of the most important details to look at is the property location. The right location has a host of benefits such as more demand and quicker value growth and capital gains over time. It will also be a key factor in determining resale value and can make the property more attractive to tenants if you’re considering a rental property.
Investing in property can be a fantastic way to build wealth over time. Property investors can create a property investment portfolio that continuously generates income, and can also be passed along to their children. This also shows that investing in property can be a great way to have a financially secure future for you and your family.
Interest-only loans are where you merely pay back the interest of a loan to the lender. So if you borrowed $500,000 and made repayments for five years, your balance would still be $500,000. They are designed predominantly for investors for cash flow and tax deductibility purposes.
Property investment is big business in Australia. It accounts for 60% of the banking system’s assets, and over half of Australians’ wealth is held in residential concerns. That works out as $6.6 trillion over 9.6 million homes, or a respectable three times the total value of superannuation funds.
Buying your first investment property may seem daunting—it’s a major financial commitment after all. However, if done right, it can be the start of a property investment journey towards a more financially secure future.
Investment properties can be a great way to qualify for major tax breaks. But there’s a caveat to this: timing is everything.
Here are recent home loan market developments to keep you updated.
Self Managed Super Fund lending update
Another one bites the dust with the Westpac group announcing that they will stop lending in the SMSF space. The bank advised that SMSF lending will be no longer available from 31st July 2018 to the Westpac brand which also includes St. George, Bank SA, and Bank of Melbourne.