Autumn Newsletter Released - Investment Property Purchasing

Welcome to my autumn newsletter,

The Reserve Bank of Australia (RBA) pushed the official cash rate up 25 basis points to 4.00 per cent in March. Rates have now risen four times over the last five RBA Board meetings, and it would appear that the surging strength of our economy, the falling jobless rate and rising home prices will prompt further rises as the year wears on. Indeed, most major bank economists expect the official cash rate to settle around the 4.5-5.0 per cent mark by year's end.

With this in mind we consider a number of topics in this month's Mortgage News. Our articles – purchasing off-the-plan as well what type of investment property will suit your needs – consider opportunities in the current market. We also take a look at how you can help your children onto the property ladder through co-ownership plus some other strategies, and how to add value to your home through renovation.

With rates on the rise now maybe the time to look at refinancing your existing loan. Even after the latest increases, loan rates in the very low 6's with no ongoing fees, etc, are available. Fixed rates are still up but there has been a little downward movement. Interest in Tasmania and mainland investment properties appears to be on the increase.

For your interest, one of my lenders has a new loan product available for boats, jetskis and motorbikes, full doc or low doc. In addition to finance, please contact me if you are considering your home or life insurance.

If you'd like to discuss any topics highlighted in this issue of Mortgage News, or have any questions on how the recent rate rise may impact your mortgage, please feel free to give me a call.

Sincerely,
Allan Faint
Home Finance Centre Hobart