Perth Price Growth

“Price growth is forecast to be strongest over the next three years and exptected to record 19 per cent growth in Perth and Sydney” QBE LMI chief executive Ian Graham said. Solid income and population growth will be driven from substantial levels of investment in mining and resource capacity in Western Australia, creating robust demand for housing in Perth. Despite recording relatively unexciting growth this year, Sydney property prices could rise by as much as 20 per cent within the next three years. According to QBE LMI’s latest housing outlook, a growing deficiency in household dwelling supply will force property prices significantly higher over the coming three years. By 2014, QBE LMI expects property prices in Sydney to be 20 per cent higher than what they are today. In Sydney, the significant deficiency of residential dwellings is likely to continue to apply upward pressure on both rents and dwelling prices, attracting demand in particular from investors. Constrained affordability has resulted in little annual movement in prices in Sydney since 2004, with the exception of the 14.3 per cent increase in the median house price in 2009/10, which highlights the level of pent up demand that can be released as affordability and the economic outlook improves. Brisbane and Darwin are also expected to record strong growth in the three years to June 2014, with economists predicting 16 and 17 per cent growth respectively.

Interest Rates

Great News…

The Reserve Bank has decided to leave interest rates on hold!  At it’s
meeting today, the Board decided to leave the cash rate unchanged at 4.75
per cent.

Economists are divided as to whether rates will go down in the near future
or remain at the current rate, good news is that none at this stage are
anticipating a rise.

Conditions in global financial markets have continued to be very unsettled
with uncertainty increasing about both the prospects for resolution of the
sovereign debt and banking problems in Europe, and the outlook for global
economic growth.  While temporary impediments that had contributed to a
slowing in growth in some countries over recent months are lessening, recent
data suggest a continuing period of soft economic conditions in both Europe
and the United States.  Moreover, the uncertainty and financial volatility
have reduced confidence, which could result in more cautious behaviour by
firms and households in major countries.

How to effectively manage your Mortgage!

Following are five tips to get you on your way:-

Direct Debit: Make your repayments on time, organise to have your mortgage to be direct debited from your pay.

Never be late: If you cannot make your repayments, organize with your broker to perhaps refinance as an option… much better to extend the life of the loan than to go into default.

Budget: Keep your mortgage the priority even if that means cutting back spending in other places. Make a budget factoring in your mortgage repayments and expenses then keep a diary of your expenditure which will make it easier to stick to your budget.

Pay more than the minimum: Pay your repayments fortnightly which will save on interest charges and when you have extra funds eg. tax refunds, pay them straight of your home loan… it will certainly make a difference in the long term.

Cut Debt: Reduce credit cards and their limits and only use them very seldomly. You will then have more control of your spending which will also make a difference to your mortgage.

Imagine yourself building wealth with property investment

Considering property investment? Come along to a FREE Joyce Property Investment Seminar where you will get the right advice and experience to help you along the way. There is no obligation or sales pitch and you will know more about property investment when you leave than when you came. Bookings are essential so please contact Mark Coonan from LoanEasy on 1300 883 453 or email markc@loaneasy.com.au to discuss your financial situation so as to assess over the phone if you are in a position to look at property investment.

Stay Variable or Fix my Home Loan Rate?

This is the most commonly asked question today regarding home loans… If we look at the average 3 year fixed rate at 6.79% (loans over $250,000 receiving a 20pt discount) and then the current average discounted variable rate at 5.11% for P&I payments for a loan of $250,000, the variable monthly repayment would be $1360 approx. The fixed monthly repayment would be $1630 approx. Therefore, an extra $270 is required.
Often the question then arises if the extra payment is better off used in the principal payment? An option then could be to pay the higher amount (3 year fixed rate payment) and leave the loan on a variable rate. The principal balance should then be reduced and also provide additional funds in redraw. At the end of 3 years with the interest rate rises being chronologically consistent, the variable rate would need to be 8.4% approx (monthly/annual fees have not been included).

Perth’s Housing Market

The Real Estate Institute of WA released data that the Perth market seems to have returned to normal with turnover restored to the 15 year average with sales activity from first home buyers allowing trade-up buyers to return to the market to sell their existing home and up-grade

This has resulted in sales turnover being up by sixty percent at this same time last year

Buying our home in WA was made easy with Loan Easy

Thank you for all the work you put in to assist me with the purchase of my new home. I really appreciate all your help and would have no hesitation in recommending you to potential clients. Your customer service, industry knowledge and proactive approach were excellent and really helped to take a lot of stress out of buying my first home here in WA.

Julie B, Success WA

7 Things You Need to Know When Purchasing a Home

Stamp Duty: A government cost calculated on purchase price. First home buyers are exempt up to a purchase of $500,000. If building you only pay on the land cost.

Mortgage Insurance: A deposit of 20% or more is required so as not to have to pay Mortgage Insurance to lenders.

Building Insurance: The building, not the land, needs to be insured prior to settlement of the purchase.

Fixed Loan Rate: Penalty fees may be issued if paying loan off in lump sums, making higher repayments or paying off in full before its due date.

Discounted Variable Rate: This rate may only last for a period of one, two or three years and then will revert back the standard variable rate.

Split Loan: Your loan may be part fixed and part variable and some lenders do charge fees for set-up, accounts & discharge on both portions.

Conveyancer/Settlement Agent: A Conveyer organises the legal transfer of property title from the seller to the buyer.  A settlement fee will apply as well as other fees including title search.