The important role of depreciation in a successful portfolio-building strategy is widely misunderstood. In fact, some investors miss out on valuable financial benefits and this reduces the profitability of their investments.
I am often asked questions about the ‘right’ way to invest in property. In fact, one of the most common queries I field is: “Should I buy for cash flow or capital growth?”
Are you aware that property investors increasingly face stricter guidelines?
Discover how to overcome banking lending thresholds and download your own FREE PERSONALISED PROPERTY PROFILE to help you grow your investment profile.
Two articles in today’s AFR draw compelling arguments supporting efforts by regulators in both countries to slow Chinese investment in Australian property.
Chinese buyers, who make up about 80 per cent of all foreign property purchases in Australia, have grown wary after being hit by Beijing's tightened capital controls, local banks restricting lending and growing fears of an over-supply in the capital city apartment market.
A recent report by the Real Estate Institute of Australia (REIA) discovered average Australian’s are spending more than 31.7% of their family income on mortgage repayments, a fact I can attest to through the number of calls I’ve fielded this year from borrowers seeking help in lowering their repayments.
It’s no surprise Victoria tops the list with Sydney not far behind.
Back in May 2013, when PIMCO (one of the world’s largest bond fund managers) first uttered the phrase "the new neutral", it was in relation to Australia's policy rate, the cash rate. At that time, we estimated the neutral policy rate – the level that neither stimulates growth nor slows it – to be about 3 per cent for Australia, and we have stood by that view. More than four years later, the Reserve Bank of Australia explicitly referenced 3.5 per cent as its estimate of the neutral cash rate in its meeting minutes released on July 18; board members also acknowledged significant uncertainty around this estimate.
Whether it's 3 per cent or 3.5 per cent, the clear takeaway from both of these estimates is that we should expect interest rates in Australia to be significantly lower going forward than in rate cycles before the global financial crisis.
For the second year, UBank has released The UBank Know Your Numbers Index.
Lee Hatton, CEO of UBank said “actively monitoring and seeking the best rate should be a priority for home owners as there are some great benefits on offer. We are seeing some of the lowest home loan rates on record, so now is the perfect time to know your numbers, and consider refinancing.”
“Buying a home is one of the biggest investments of your life, so it’s really important that you find the right loan that suits your individual needs. Simply knowing your exact home loan rate and managing it closely could save you thousands of dollars a year.”
Morgan Brooks Direct is now operating under the Morgan & Brooks brand from our flagship offices in Melbourne Australia.
As part of the Morgan & Brooks family, we will continue to provide you with industry-leading variable and fixed rate mortgage products, vehicle and equipment finance and insurance services you have come to expect from Morgan Brooks Direct, as well as new products and services, backed by our award-winning aggregator partners.
The AFR reported tonights' Budget will contain news of a (long overdue) tax on foreign resident vacant residential apartments.
Reliable sources suggest those with overdue tax debts will be disclosed to credit reporting agencies.
As published by Mortgage Professional Australia today, the Australian Bankers Association has announced that business borrowers will get 90 days’ notice of whether their loans will be renewed.