For most people, buying a home or investment property is only possible by taking out a home or investment loan. If this is you, you need to know how the game has changed and what it takes to be approved.
New rules came into play on 1 January 2019 relating to credit cards. These unrelated new rules could have an adverse impact on your borrowing capacity when it comes to applying for a home or investment loan.
The dictionary definition of opportunity cost is 'the loss of other alternatives when one alternative is chosen'. When it comes to buying property, the 'alternative' chosen is usually to do nothing and wait. This is happening right now as many people think they can time the market.
Borrowing money should be easy right? You have a good paying job, your debts are under control, you rarely use your credit card(s), and you have clean credit history. But you've just been knocked back to borrow money? How can that be?
Back in November 2017, the Federal Government announced that it will be mandatory for the big four banks to provide Comprehensive Credit Report (CCR) effective 1 July 2018. Previously your credit file only showed your 'bad' credit behavior. From 1 July 2018, your credit file will show the lot... the good, the bad, and the ugly.
Rentvesting is a strategy which has been used by many as an alternative method for creating wealth through property. This type of strategy has been most popular with first time property buyers, as well as those wanting to live their desired lifestyle whilst committing to creating long term wealth through the power of property.
Monopoly has been a classic board game for over a century. It's a real estate trading game played for fun... and for a chance to be a real estate tycoon. The game rules are interesting as there are some valuable lessons all investors can learn to win at the game of property investing.
In my daily work, a common theme I see is that people generally don't have a good handle on their money. Money is no longer simple and most transactions are electronic with no physical exchange of cash. This could be part of the problem, however I think it's more than that. Let me explain...
Depending on your age, you may recall the good old days when loyalty was a positive attribute (relating to banking) and doing business with the same bank worked in your favour. Nowadays, this is no longer the case as maintaining a home loan with the same lender for many years is costing you, irrespective of how good the deal was when you first took out the mortgage.