ACT’s Professional Advantage: Save $70,000+ in Australia’s Most Stable Market
The Australian Capital Territory offers first home buyers a unique combination of Australia's most stable employment market and strategic...
Borrowing with a buffer may be the only risk minimisation action you can put in place.
Essentially, this means that if all goes wrong, make sure you have either equity or savings that you can use to cover the additional costs so you don’t have to sell the property at a Fire Sale Price that’s unacceptable to you.
This allows you to buy time.
If you’re using equity from your home to buy an investment property, and you need $100,000 to cover that $400,000 property, and $80,000 for the 20% deposit and stamp duty and legal fees of $20, may consider tapping into the equity with a buffer.
So instead of borrowing the hundred thousand dollars, you borrow $120,000 giving you a $20,000 buffer in case you lose your job or you can’t rent the property out or your renovation goes over time or budget or is delayed…
Borrowing with a buffer allows you to have some extra time and it’s something you might want to consider.
Make a time to talk with one of our experts https://investorschoice.com.au/bookacall
#borrowingcapacity #setit #firsthome #propertyinvestment #mortgagebroker #realestate
Stay up to date with the latest developments in the property market over the past month.
Our video takes you through an overview of the state of the property market, including a breakdown across all capital cities of the changes in dwelling values over the past month, as well as over a period of 12 months.
Please get in touch if you’d like assistance finding the right loan for your situation.
Investors Choice Mortgages is a trust based company we are to committed to working with you on financial solutions who will assist you reach your goals. Australian Credit Licence 391985. Make an Appointment: www.investorschoice.com.au/bookacall
How to set realistic goals?
The question about goals and bringing it back to the now is really important. And the fact that a lot of people overestimate what their desired income is, or what they want, and what they can really live off.
Going through and looking at what you really need to live off might be an exercise as well. So, there’s one thing about saying ‘is this is this possible?’, and it’s another thing saying ‘well, in actual fact, maybe I can do better with the capital growth, I’m really going to target a higher growth area”!
So, you can then see very quickly, it makes such a big difference just by having over those 15 years, just that little 3% per year difference in growth.
Find out how many properties you need to know checking out our free online portfolio calculator https://investorschoice.com.au/portfolio-calculator
Buying an investment property involves a different mindset than buying a home.
When choosing a suburb, you need to look at these 4 factors:
Factor #1 – Future Growth
You may not be able to predict the future, but you can look at certain indicators to get an idea.
Pricing pressure from suburbs closer to the CBD, income and population growth to name just a few
Factor #2 – Demographics
Knowing what your tenant (and future buyer) wants is vital.
That is why buying the ‘typical’ property for the suburb is crucial.
Factor #3 – Suburb Gentrification
This is a change of fortune for the suburb.
This may mean a change in the people who live there.
Increasing incomes, even the odd organic store popping up.
There are signs that you can watch for.
Factor #4 – Supply and Demand
How does supply and demand factor into your suburb choice?
As an investor you want renters, so making sure there is a healthy demand for the ‘typical’ property but not an oversupply will keep your property from being vacant.
Make a time to talk to one of our experts to find out just how far away you are to setting up your future now https://investorschoice.com.au/bookacall
Metropolitan housing markets experienced yet another quarter of bumper price growth, however the regions are giving the cities a run for their money.
According to CoreLogic figures for the three months to November 30, the combined capital city dwelling median had increased by 4 per cent to $783,557 while the combined regional median jumped 5.9 per cent to $527,322.
Two major housing data groups have released their regional reports, both confirming what most of us already know – Australia’s escape to the country continues. While few property punters are surprised by statistics showing a regional boom, what’s of real interest to homebuyers and investors is why the phenomenon began, and whether it will continue.
PropTrack senior economist and author of realestate.com.au’s latest PropTrack Regional Australia Report, Eleanor Creagh, sited the pandemic-driven demand for space and a change of scene as the catalyst behind the regional price surge of almost 30 per cent – the fastest annual jump in at least 35 years.i
It appears many ‘city skippers’ have sought out regions that remain on the outskirts of metropolitan areas, within a one to two-hour commuting distance of major capitals. As a result, regional centres are seeing rapid population growth with an unparalleled flow of people out of major cities – especially Sydney and Melbourne.
In CoreLogic’s Regional Market Update research director at CoreLogic, Tim Lawless, agreed the key drivers pushing up region prices was the population shift, coupled with low interest rates, higher household savings and more affordable housing outside the booming cities. But that might be reaching a tipping point.ii
Once again Queensland proved to be hot property, as houses on the Gold Coast were the quickest to sell with a median time on market of just 18 days.
“This mismatch between available supply and demand has created a heightened level of urgency amongst buyers, generating strong selling conditions where homes are snapped up quickly with minimal levels of negotiation.”
This flurry of activity, however, could soon hit an affordability tipping point, Mr Lawless said. “If housing values across regional parts of the country continue to outpace the capitals, the obvious outcome will be that regional markets lose their affordability advantage.”
Although the regions are experiencing exceptional growth, that doesn’t mean the cities are lagging behind. Based on median values, capital city houses are so highly sought after they’re now 37.9 per cent more expensive than units – the largest difference CoreLogic has ever recorded. In dollar terms, this divide means a capital city house is about $240,500 more than a unit.
The Victorian capital experienced a 2.4 per cent change in dwelling values over the quarter, taking the median to $788,484. Supply issues moving in the buyer’s favour in Melbourne with November’s stock levels 7.9 per cent above the five year average.
Australia’s priciest city has maintained its crown with a 4.3 per cent quarterly rise in dwelling values to a median of $1.09 million. Stock levels are still tight in the Harbour city with local listings sitting -2.6 per cent below the five-year average.
After recording the fastest pace of growth among capital cities, Brisbane (alongside Adelaide) is yet to experience the moderate slowdown seen in the other cities. Brisbane’s quarterly gain was 7.4 per cent to a median of $662,199. Supply in the capital is -33.9 per cent lower than the five year average.
Our nation’s capital is now the second most expensive city in Australia with a median dwelling value of $882,519 after a 5 per cent rise this quarter.
The West Australian capital has had a humble quarter of price movement with a dwelling change of just 0.4 per cent to a median of $528,540.
To find out how you can make the most of current market conditions, contact us today.
i PropTrack Regional Australia Report
ii CoreLogic’s Regional Market Update
Note: all figures in the city snapshots are sourced from: CoreLogic’s national Home Value Index (December, 2021)
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