Property investment from Super Funds rising

The popularity of investing in property through self-managed superannuation funds (SMSFs) appears to be on the up, judging by the latest statistics from the Australian Taxation Office. The ATO’s recently released Self-managed superannuation funds: A Statistical Overview report reveals that the percentage of all SMSF assets accounted for by 'real property' rose by just under 2% between 2008 and 2009 – bringing its total share of the SMSF market up to 14.7% ($48.3bn). With the report also po...
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Mortgage Refinancers Boost Loan Market Activity

More and more Australians are looking for a better deal on their home loan, with the most recent data from the ABS revealing that refinancing activity jumped by 17% over 12 months and 5% over three months. With the RBA having since instigated back to back interest rate cuts, it is predicted that real estate activity will increase further in the coming months. “The RBA rate cuts in November and December have brought forward queries of those looking to refinance and also first home buyers, p...
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2012 Australian Property Market is all about First Home Buyers

First time buyers are expected to be the major players in the property market this year, according to a nationwide poll of mortgage brokers. The Loan Market poll of 252 of its brokers found that 36% of respondents expected first time buyers to dominate the housing finance market in 2012. Investors came in at a close second, with 33% of respondents picking out Australia’s property investors as this year’s expected dominant force, while refinancers came in third with 30%. "Our brokers are...
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Western Sydney Property Prices to Outgrow the Nation

Western Sydney will prove to be one of the nation’s property investment hotspots next year, according to a recent report by SQM Research. The Western Sydney Regional Report, gives Sydney’s west a score of 4.25 stars out of five, and forecasts that the area will outperform most Australian regions next year. Western Sydney’s property prices are expected to grow by between 2.6% and 6.6% in 2012, says the report, thanks to various factors. These include: Significant regional development ov...
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Property Investment: Houses or Units?

Should you invest your hard-earned cash in house on a quarter acre block, or a low-maintenance apartment in the city? It’s the age-old question that plagues property investors across the nation, and as is often the case when it comes to real estate, there is no clear-cut answer. “The question itself is not as simple as it sounds, as there are so many factors that determine profitability,” says Elisa Townsend from thefinanceteam.com.au. “When I look at a property for myself I tend to go ...
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Property Investment: 9 Key Tips for Increasing Returns

1. Good presentation is the key to maximising return on investment. A well presented property attracts interest and creates increased competition among prospective tenants, enhancing the prospects of a higher rental return. 2. First impressions are critical. A fresh, clean and cheery property arouses interest and creates the conditions for the best rent. 3. When a rental property becomes vacant it pays dividends to look at it through the eyes of a tenant and note anything that requires att...
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Buying an Apartment: 5 Key Features to Look For

The timing has never been better to invest in property, with low interest rates and a depressed real estate market presenting a rash of opportunities for savvy buyers. And if you’re in the market to buy a unit, there are certain features you should look for to ensure that you stretch your dollar ever further, says Cate Dundon from www.buyersadvocate.com.au. To begin with, you need to do your research on your chosen areas using reputable data providers such as Residex or RP Data. “Targ...
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First Home Owner Grants not the answer

First Home Owner Grants are inadequate to address the barriers to home ownership, Adelaide Bank’s Damian Percy has stated. Loan Market COO Dean Rushton this week called for the $7,000 First Home Owner Grant to be increased, However, Percy, Adelaide's general manager of third party lending, has told Australian BrokerNews increasing the FHOG will do little to ease affordability concerns for first home buyers. "I’ve always considered it a mistake to attempt to address issues facing FHBs by pr...
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Lying on Credit Applications on the Rise

The number of borrowers who misrepresent their personal financial information when applying for credit is on the increase, according to Veda Advantage. Recent research conducted by Galaxy Research for Veda Advantage estimates that 1.8 million - or 10% of Australians - have misrepresented their financial information when applying for credit, an increase of 200,000 on the estimates that were compiled only six months ago. The most common form of misrepresentation was an understatment of total...
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Australian Home Borrowers Vulnerable to Defaults

Interest rate hikes are increasingly likely to send Australian homeowners into default, Fitch Ratings has claimed. In an exposure draft review of the Australian RMBS sector, the ratings agency has claimed homeowners are now more vulnerable to interest rate hikes than during the recession of the 1990s, when interest rates were around 17%. Director of Fitch's Australian structured finance team David Carroll said this could be attributed to rising levels of indebtedness and higher house prices. He...
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Will Gen Ys Lead Housing Recovery in Australia

The Australian housing market has a bright future, and Gen Ys will be the ones to lead it there, a social demographer has claimed. In spite of growing pessimism surrounding the economy, KPMG partner Bernard Salt has told Australian BrokerNews he expects economic conditions to pick up within the next few years. Salt claimed much of the economic pessimism in the housing market is merely reverberations from the GFC. "We are in the shadow of the GFC at the moment. When you're in the shadow, it...
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Could one Small Mistake Cost you a Home Loan

Did you know that just one forgotten electricity bill or unpaid mobile phone invoice could make or break your home loan application? Did you also know that an unpaid bill of just $100 or more can smear your credit file for up to seven years?   The fact is, it doesn't take much for your credit file to end up with a black mark against it.   Kristy Sheppard confirms that Mortgage Choice's home loan advisors meet with would-be borrowers on a daily basis, who are shocked to learn that their credi...
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Tax Time: Possible Deductions available to Property Investors

Tax time may be a few months off, but it pays to be organised – and by getting your ducks in a row now, you can save yourself a giant headache come tax time. Also, if you know exactly what you can claim, you can actually start enjoying the savings in your pay packet each week, rather than waiting til End of Financial Year. For instance, if you know that your property-related tax deductions amount to $6,000, that equates to a tax refund of $1,890, if you pay tax on a standard 31.5% tax brac...
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Property: 10 tips for choosing the best location

Shopping for your new home or next investment property? When you’re in the market for a new piece of real estate, finding the right location is crucial to ensure strong long-term capital growth – so we’ve rounded up some advice to help you locate the best possible spot! Tip One: Know your budget For most buyers, your budget dictates which areas you can afford to live in or invest. “The best way to determine your budget is to meet with a mortgage broker or lender and obtain a pre-approv...
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Sometimes Cutting Costs can end up Costing More

The Reserve Bank of Australia’s Statement on Monetary Policy released in February revealed that the household savings ratio was at its highest point in more than 20 years. According to the central bank, Aussies are tucking away 10% of their disposable income – that’s a massive swing from the mid-noughties when we were spending about 2% more than we earned. But there’s a huge difference between tightening your belt and cinching off the blood flow to your lower extremities. We’re all about s...
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