It would seem that there are many clients who are still wary about buying ‘off the plan’. This seems to come largely from a number of developers who were unscrupulous during the boom period prior to the GFC. By and large, the GFC has flushed out the unsavoury operators. The businesses that were able to withstand the assault of the GFC, especially in the construction industry, for the most part, were good businesses prior and are still strong businesses today.
This week, 2GB rang me to seek my professional comment on an article that was on the front page of the Australian. Macquarie Bank published a list of Australia’s Top 50 Risky Suburbs and Ben Fordham wanted to clarify for his listeners, what made a ‘risky’ suburb for investment and how that might affect lending practices.
By Phil McCarroll | 25 May 2016 06:44 AM
After tightening up its loan book in response to the Australian Prudential Regulation Authority (APRA) driven crackdown last year, major lender Westpac is set to make life easier for investors.
According to a report in Fairfax media outlets, the big four bank has advised mortgage brokers that its loan to value ratios (LVR) for investment loans will move back from 80% back to 90%.
The Reserve Bank of Australia has announced that it will cut interest rates. This sets a new record low rate of 1.75% – the first change since May last year.
HOW MUCH DO YOU NEED TO RETIRE?
Different people will have different needs depending on the lifestyle they expect in retirement, however, figures released by the Association of Superannuation Funds of Australia (ASFA) can help you to plan.
EXPECTING YOUR SALARY TO BE ENOUGH TO COVER YOU IN RETIREMENT
Many Australians are caught in an old paradigm, their parents’ and grandparents’ idea that if they just work hard enough, they’ll earn enough and save enough to retire on.
This is a question that comes up from time to time and the better question is, what property investment is going to give me the better return in the long run and have the lowest holding costs? This is the better question to ask, regardless of the kind of property you’re looking to invest in.
Australia’s retirement system is known to be among the best in the world. With the government’s age pension and mandatory “Superannuation Guarantee” programs from employers, it has far exceeded other industrial nations like the United States when it comes to high individual savings rate.
Many clients come to see us with the idea that they can make money from property, but they don’t really understand how. If you know the formula, and you get it right, then it’s relatively easy to make money through property investment and often it doesn’t cost very much to do so.
How is that possible? How can you grow your wealth with little initial outlay?
Did you know?
70% of Australian retirees rely on Government subsidies or are living below the poverty line.
I know I do not want to be part of this statistic, living on less than $300 per week (the Australian Aged Pension per couple).
So… what is the solution?