I choose to see the glass as half full
Douglas Piening 27/6/2018
Amid talk of a Credit Squeeze and predictions that house prices will fall, especially in the major cities of Melbourne and Sydney you could be mistaken for thinking it was all doom and gloom. I would prefer to focus on a few of the positives in the current environment!
Interest Rates have never been lower
Interest Rates are still at all time lows and look like staying that way for some time yet – the interest rates available for Owner Occupied loans are historically low and provide an opportunity for astute borrowers to rapidly pay down their loans. If your interest rate has a 4 or 5 in front of it, you need to get it reviewed.
Government Grants and Concessions
State Governments are still offering various concessions and grants for certain borrowers and properties. In regional Victoria there is the opportunity to access a First Home Owners Grant of up to $20,000 as well as stamp duty concessions for eligible buyers
Affordability is set to improve
For those who are looking to enter the market or those looking to upgrade, a softening market will provide access to property they may not have previously been able to afford, as well as savings on transaction costs such as Stamp Duty.
It can be a good time to invest
Timing is everything with investment and a softening market will provide opportunities to pick up a bargain. Whether it be buyers who can’t complete a purchase off the plan or vendors who need to sell a softening market will provide astute buyers with an opportunity to benefit.
Using your Equity
You may be able to use your existing equity to invest in other property or assets. (Best speak with a Financial Adviser first) Wealthy Australians, many of whom don’t need a mortgage still use their property to secure finance for investment purposes and with low interest rates available all Australians who own property can benefit from such an approach.
Douglas Piening is a Mortgage and Finance Broker with Piening Financial Solutions and is passionate about providing advice you can trust. Whether it’s buying a home, refinancing a loan, investing, building or renovating, Doug brings a wealth of knowledge and expertise to assist with your lending needs.
You can contact Doug at firstname.lastname@example.org or (m) 0408 671 524.
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This information is of a general nature only and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.