How to avoid Negative Equity - 21
Whilst many other Property commentators are announcing
a return to confidence for the Australian Property Market,
we are being more cautious.
Our major concern is to enable Australian Households
to create a strategy to beat Negative Equity.
An article entitled ,
"Honeymoon over for mortgage holders,
says shadow Reserve Bank Board",
syndicated by News Ltd on April 1st, 2013,
states that,
" Mortgage holders have enjoyed their last interest rate cut
and should brace for rising rates in the coming year,
according to News Limited shadow Reserve Bank Board ".
We need to understand that interest rates are affected
by several economic factors.
This potential increase in interest rates
would dampen Property buyer demand during the course of the year.
When we add the Baby Boomer Retirement wave
to increasing interest rates ,
we have a recipe for flat Property Markets.
Therefore it is extremely important that Property buyers
do their due dilligence on Property Prices
in the region they have selected to purchase.
To purchase a Property at an inflated Price
because of Real Estate hype,
could lead to Negative Equity
if the LVR is above 90%.
The News Limited article goes on to say,
"At 5.65 per cent , the discounted is at its lowest in half a century,
excluding the Global Financial Crisis,
as the Reserve Bank seeks to engineer a recovery
in non-mining parts of the economy."
Over the next 5 years Australia faces a Tidal Wave of Baby Boomers
moving into Retirement mode.
This taboo subject is rarely discussed by Property commentators
because it is seen as a negative issue.
We have an ageing population,
especially in South Australia where our current population
is actually going backwards.
The article continues,
"according to the chief economist of the HSBC Bank Australia , Paul Bloxham ,
who believes a pre-Christmas rate hike is on the Cards "
To avoid Negative Equity it is necessary
to work with a Mortgage Broker who is aware of these issues .
What do you think ?
Will Interest Rates rise this year ?
How will the Property Market fare this year ?
Phone Craig Holme on 0423 585 932 .
Would you like to join the discussion on Facebook ,
Craig Holme Consulting
Whilst many other Property commentators are announcing
a return to confidence for the Australian Property Market,
we are being more cautious.
Our major concern is to enable Australian Households
to create a strategy to beat Negative Equity.
An article entitled ,
"Honeymoon over for mortgage holders,
says shadow Reserve Bank Board",
syndicated by News Ltd on April 1st, 2013,
states that,
" Mortgage holders have enjoyed their last interest rate cut
and should brace for rising rates in the coming year,
according to News Limited shadow Reserve Bank Board ".
We need to understand that interest rates are affected
by several economic factors.
This potential increase in interest rates
would dampen Property buyer demand during the course of the year.
When we add the Baby Boomer Retirement wave
to increasing interest rates ,
we have a recipe for flat Property Markets.
Therefore it is extremely important that Property buyers
do their due dilligence on Property Prices
in the region they have selected to purchase.
To purchase a Property at an inflated Price
because of Real Estate hype,
could lead to Negative Equity
if the LVR is above 90%.
The News Limited article goes on to say,
"At 5.65 per cent , the discounted is at its lowest in half a century,
excluding the Global Financial Crisis,
as the Reserve Bank seeks to engineer a recovery
in non-mining parts of the economy."
Over the next 5 years Australia faces a Tidal Wave of Baby Boomers
moving into Retirement mode.
This taboo subject is rarely discussed by Property commentators
because it is seen as a negative issue.
We have an ageing population,
especially in South Australia where our current population
is actually going backwards.
The article continues,
"according to the chief economist of the HSBC Bank Australia , Paul Bloxham ,
who believes a pre-Christmas rate hike is on the Cards "
To avoid Negative Equity it is necessary
to work with a Mortgage Broker who is aware of these issues .
What do you think ?
Will Interest Rates rise this year ?
How will the Property Market fare this year ?
Phone Craig Holme on 0423 585 932 .
Would you like to join the discussion on Facebook ,
Craig Holme Consulting
Copyright - Craig Holme - 2013
No comments:
Post a Comment