Stage 4 lockdown is here with thousands of businesses and industries adversely impacted as well as hundreds of thousands more Melburnians unemployed as a result. The question many are asking right now is how stage 4 lockdown will impact the Melbourne property market and what the rules of play are. To address this point, I want to share with you a very good blog I read this morning which addresses this question - written by Michael Yardney (Director of Metropole Property Strategists and best-selling author of 8 books).
Last month the federal government announced yet another lifeline to the tune of $688million to stimulate our economy as a result of the ongoing damage COVID19 is causing to our economy. A $25k cash grant is a reasonable handout for anyone building their new home or substantially renovating their existing home. The grant is designed to stimulate jobs for the trades and the construction industry. The question is, will this new government initiative benefit you or is it a trap for some? Here are my thoughts...
Lenders Mortgage Insurance (LMI) is a term often misunderstood. As a general rule, LMI is triggered when borrowing in excess of 80% of purchase price or bank valuation. The cost of LMI can be huge as it adds significant cost when buying property, however if you are employed in a certain profession, you may be one of the lucky ones to avoid paying for it.
Right now you will be forgiven for thinking that the roof will cave in if you buy a residential property, as the value may plummet. After all, some headlines are currently suggesting that property prices in Australia will drop by as much as 30% (or more) resulting from COVID-19. So what do you do? It's the million dollar question isn't it? Here's what I think...
There is no doubt that COVID-19 will be remembered as a lifetime event that changed the world forever. This unprecedented pandemic continues to destroy many families with the death toll rising daily, and crippling the global economy at large. Just like any other crisis that has come and gone, there are lessons we can all take away from it.
As humans we are creatures of habit and unless something is broken, we tend to avoid paying attention to it. When it comes to your home loan, complacency can be costly. Your bank or lender usually forgets about you once your home loan has settled. The only time they'll contact you, apart from marketing, is when they learn you're about to refinance elsewhere - usually their reactive action is too late as your new lender has a much more compelling offer.
As the coronavirus pandemic continues to make headlines around the world, property and finance related matters continue to change in light of the current pandemic we are all faced with. Change is happening so fast I felt it was timely to update you on a number of key issues relating to home loans and property finance.
In light of the current coronavirus crisis, it is inevitable some mortgage customers will experience financial difficulties - as some jobs will be put on hold for an extended period, and job losses will also occur. Cash flow is the life blood of any business, and your household is no different.
By now you may be wondering how the corona virus issue may impact our property markets given that the stock market has been spooked globally with values plummeting over the last couple of weeks. The question on some people's minds is whether our property markets will be next and whether you should take some sort of action. Let me share my thoughts.
A new year, a new government scheme. Late in 2019, the Federal Government announced the introduction of a First Home Loan Deposit Scheme which commenced on the 1st January 2020. This new scheme is designed to help eligible first home buyers on low and middle incomes to purchase a home with a deposit as little as 5%...