The festive season is here!

And as we all run around trying to get those last-minute jobs organised before the holidays begin, I hope you enjoy my December Newsletter.

The Reserve Bank met in the first week of the month and decided to leave the cash rate unchanged at 1.50 per cent.

This month I look at the rookie mistake more than half Australian property investors are still making and how to get your bank to give you a discount on your mortgage rate.

I wish you all the very best for a wonderful Christmas and a happy, safe and successful 2018.

Want some extra cash to put the final touch on your renovations? Call me now to find out how you can refinance your mortgage in the New Year. Together we’ll find some great options to perfectly suit your needs.

Call me now on: 0402 408944.

Don’t fall for this common property investing mistake.

While finance experts remain divided as to whether the RBA should cut, maintain or raise interest rates next year, it appears as many as 56% of Australian investors are making a rookie mistake when selecting a property investment.

When asked by ME Bank last month what made them confident that their property investment would make them money, the majority of the 1500 respondents said it was because Australian house prices have always gone up in the past. This attitude breaks the golden rule of investing – one should never use past performance as a guide for future success.   

Additionally, 11% responded that their investment must be safe because so many others were investing in property (i.e. there’s safety in numbers), while only 34% were confident because they’d analysed the market or sought advice.

While it’s true that analysts note there’s been a whopping 6556% growth in property assets over the last 55 years, that’s no reason to throw caution to the wind, particularly as property prices are currently so high. Studies show we humans aren’t always rational when making financial decisions, often bucking the advice of analysis.

That’s because our bias towards experiential learning leads us to believe we’ll have an equally good investment experience when we see others doing so. So, if you’re currently considering a property investment, remember to always remain objective about an opportunity.

Analysis and advice is always the best basis for making any investment decision, particularly if you’re tempted to rely on past performance or basing your decision on what other investors are doing.

It’s also important to acknowledge that Australia’s property market is diverse – properties do not perform equally at any one time. For example, as Melbourne, Hobart and Sydney markets grow, Perth is experiencing a downturn and new Brisbane apartments are starting to outstrip demand. While Perth is currently recovering from a downturn, Melbourne and Sydney are growing albeit not as fast, while growth in Hobart has improved.

Apartment development in Brisbane, Sydney and Melbourne are also at record high levels, with some commentators speculating supply may outstrip demand in the short-term.

ME’s survey follows surprising news that 24% of property investors expect to benefit from weaker price growth.

It’s been 7 years since the last RBA interest rate hike – will that change in 2018? If you’ve been thinking about investing in property while interest rates were still low, now’s the time! Get in touch to find out all you need to know about investment mortgages today.

Could you get a discount on your mortgage rates in 2018?

If you thought you had to settle for a lender’s advertised interest rate, you’d be wrong.

New research by finder.com.au has discovered that almost half of Australians don’t know they can ask for a discount on their interest rate.     

Of 1286 homeowners, the survey discovered only a third of homeowners had bargained for a better mortgage rate on their home loan.

45% of homeowners, however didn’t even know you could ask for a discount. Yet of the 43% who attempted to get a discount, 77% were successful in negotiating a better rate.

Which just goes to prove – if you don’t ask you don’t get.

The survey also found that Generation X were the most likely to have received a discount (38%) followed by Generation Y (32%), while, Baby Boomers were the least likely (28%) to secure a rate discount.

Further, men 37%) were more likely than women (29%) to have asked for and received a rate discount.

The moral of the story?

“Don’t settle for the advertised rate. Have the confidence to ask for a lower rate, and reap the reward that will come with making smaller mortgage repayments,” says Bessie Hassan, money expert at finder.com.au

To put it into perspective, a discount of 0.2 percentage points could save you $20,000 over the course of your mortgage.

Not comfortable with negotiation? Ask me to do it for you! If you haven’t changed received a discount on your current interest rate I could save you more. Speak to me about your options now.