Let’s catch up on four hot stories making waves this spring;1. A surprising 3 year property price growth forecast.
2. The rules are changing for fixed rates.
3. Thinking of building? Average times revealed.
4. Soon, you won’t be able to spend more than $10,000 in cash.
Now is a great time to book in a chat about your home loan. There’s loads of competitive deals in the lead up to Christmas. Hit the button or give me a call!
Call me now on: 0402 408944
Insurer Predicts Property Price Growth
Trying to predict where property in this country is heading is something everyone’s got an opinion on. It’s notoriously difficult to get right and whatever forecasts you see, need to be taken with a grain of salt.
That all said, QBE released their annual Housing Outlook and they have calculated some interesting trends over the next 3 years;
• Growth in house prices in all capital cities.
• Growth in unit prices in all capital cities except Sydney.
• Double digit house price growth in Adelaide and Brisbane.
• Unit prices in Darwin and Canberra to increase significantly.
If any of these figures have you questioning your purchasing, refinancing or investing plans I’d really like to have a chat with you.
Let's talk property!
Fixed Rate Rule Changes
The rules around how you much you can additionally pay off your fixed rate home loan, over and above your normal repayment amount are changing.
Many lenders are now adding maximum amounts you can additionally pay on an annual basis or over the term of the loan. Some lenders have also introduced fees if you do want to go over their policy threshold.
Why are banks doing this?
Essentially it comes down to minimising their risk. The fixed rate funds they lend can be from deposits or investments that require them to pay back a certain interest rate that matches the loan term.
What can you do?
If you have a fixed rate or are thinking about taking one out, let’s talk. There’s a few steps we can take that could save you money;
• Match a fixed rate term to your goals
• Compare hundreds of fixed rates from different banks
• Weigh up different pros and cons of each lender (some lenders even offer offset accounts with fixed rates now).
Give me a call if you want to chat about fixed rate home loans.
Thinking of building? What you need to know.
Source - QBE Australian Housing Outlook 2019-2022
If you are looking to build or purchase a property off-the-plan, you MUST start planning very early. Lenders can be extremely cautious about certain types of purchases. As you can see above, it’s a process that can take over a year. It’s definitely worth having an expert help you along the journey.
As an example, one of the biggest challenges I help my customers overcome is making sure they have the right budget in place for the fluctuations that might occur with cash-flow. Get in touch if you want to learn more.
Let's talk about new property
Say goodbye to the good old Mattress Bank!
The government has proposed legislation that would make it illegal to use cash for purchases above $10,000.
Instead, Australians will have to use electronic payments or cheques (remember them?).
This reform was recommended by the government’s Black Economy Taskforce to tackle tax evasion and other criminal activities.
The change is scheduled to take effect on 1 January 2020.
