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Market News
Are you covered?
posted February 09
Australian Property Investor Magazine’s website recently published a story relating to the devastating natural disasters that are occurring around the country at present. The article stats that investment property owners should be reminded to check and update their insurance policies.
The right insurance is important no matter what environment you live in, whether it be in drought stricken areas or suburban metro areas - mother nature unfortunately doesn’t discriminate when it comes to when and where she releases her fury. Geography obviously plays a part in weather conditions, however there are always going to be outside influences such as burst water mains, fallen power & phone lines, fallen trees, strewn debris etc, that can affect your properties state.
Steps to take:
- Read your current policies
- Check what natural disasters are and aren’t covered
- Check what value your properties are insured for
- Keep copies of any plans/valuations you have of the properties
- Track any costs you’ve had for the properties
- Take photos of your properties yearly to show accurately their recent state.
Source: API Magazine online
For more information or to read the article in full, go to: http://www.apimagazine.com.au/api-online/news/2009/02/bushfires-floods-prompt-insurance-check
To fix or not to fix
posted February 09
If you’re considering fixing your mortgage rate, talk to your mortgage broker or financial advisor first! Educate yourself thoroughly on the differences between fixed and non-fixed home loan rates, as there can be associated fees with exiting, extra repayments, withdrawals etc.
Interest rates have fallen dramatically, reaching their lowest point in years. Whilst it is tempting to fix your home loan rate now, market economists predict that to avoid Australia going into recession, cash rates will continue to fall. Until smaller rate cuts are made, it’s likely that the reserve bank will continue to drop rates.
Be aware though that fixed rates can rise before the cash rate starts to rise, so it is extremely important that you are well advised prior to making any financial commitment. Predicting rises and falls is not an exact science, so picking your time is crucial to ensure the desired outcome is reached.
Source: API Magazine online
For more information or to read the article in full, go to: http://www.apimagazine.com.au/api-online/news/2009/02/Think-twice-before-fixing-broker-advises
Affordability at a 5-year low
posted February 09
It is an iconic Australian dream to own property in this fine country, and at the moment, it is about the most affordable it’s been since 2003-04. The cause for this is lower interest rates and higher Government contributions for first time homeowners.
According to an article posted on news.com.au, the last time first home buyers had property as affordable as this was in 2003. Australian first home buyers are starting to see the market in a light that they haven’t seen in recent years - affordable and possible to crack into. Residential home building has also seen an increase in first home buyers getting into the market with the increased Government contributions.
Whilst many media outlets dwell on the falling property market as being negative, in actual fact, it is a great time to buy. Combining lower priced markets with lowering interest rates, and increased first homebuyers grants until June 30 this year, means that the market can and should be able to regain momentum
The article stated that ‘buying a home was more affordable in all capital cities and regional areas during the December quarter, the report said, with the largest improvement occurring in Perth, Brisbane and regional Western Australia.’
Source - news.com.au, Ed Logue
For more information or to read the article in full, go to:
http://www.news.com.au/business/money/story/0,28323,25060683-5013951,00.html
Why Invest?
posted February 09
Positively geared investments are hard to come by these days, however in the property market, a rise in such investment properties should trigger a recovery in the housing market.
It was reported in an article on news.com.au that southern state capital cities are starting to show affordable investments with a return about the same, if not higher rents, than mortgage repayments.
With a tight rental market, rental prices rise. Whilst this is unfortunate for competing tenants, it is positive for the property owners. It is wholly dependent on the market of the area though, so understanding the market and doing diligent research is absolutely necessary. Investors are cautioned that when looking for positively geared properties, body corporate/strata fees, taxes, insurance etc all need to be factored in.
Source: news.com.au, Anthony Klan and Sanna Trad
For more information or to read the article in full, go to:
http://www.news.com.au/business/money/story/0,28323,25060007-5013951,00.html
