Australians are buying homes less and less, as research from the Australian Institute of Health and Welfare (AIHW) recently indicated. This could be caused by factors that millennials are dealing with more and more, such as economic constraints like student debt or a market downturn, lifestyle choices and working from home, all of which may restrict their home savings.
However, while home ownership among those in their late twenties and thirties may be dropping, an ING survey showed that a third of this generation are saving to buy a home in the next three years.
So, with the restraints millennials are facing, how can they still afford to buy their first homes in the near future?
Saving money and unlocking equity – those are two good reasons why you should consider refinancing your home loan. Before we start talking interest rates, it’s important to know if you can achieve one of those two things.
There are countless reasons why you might want to unlock equity in your home. These could include:
- Renovating or adding to your property
- Buying an investment property
- Paying off other debts or bills
- Financing your education or your child’s
- Paying for medical treatment
The first thing you need to consider is whether unlocking equity is the best way to fund your venture. While it’s a great way to access cash when you really need it, using home equity does mean you could pay more interest on your home loan over its life as well as increasing its length.
A personal loan is a more suitable option for smaller purchases and renovations.
Refinancing could save you money in a variety of ways by:
- Securing a lower rate and paying less interest
- Switching from a fixed to a variable interest rate so that you can make extra repayments without incurring fees and pay your loan off earlier
- Consolidating high interest debt such as credit cards or personal loans
- Locking in a fixed rate at an opportune time
If you would like to find out whether refinancing is suitable for you, our professional mortgage brokers are here to help you work out the details. contact the team at Premium Portfolio Finance to learn more about your loan options.
Negative gearing – it may seem like investor mumbo jumbo, but it’s really quiet a simple concept to get your head around. More than that, it’s an important option in an investor’s toolkit when looking for a property to invest in. Gear yourself up for a lesson in the basics of this investment system!
Australians have a few options when it comes to financing a car, and you should make sure you know what each finance option entails before committing to one or the other. Different types of financing can cost more or less depending on the details.
We have put together some pros and cons of the two most prevalent options – car loans and dealership finance.
If you’re ready to buy your first home, congratulations! You’re about to put your foot onto the property ladder, gaining a valuable asset and reliable investment. A home in the suburbs is a great start for young families who may not yet be able to afford properties near major business districts.
That said, not all suburbs are made equal. When hunting for your first home, take some time to consider if the suburb of your choice will benefit you in the long-run.
Starting July 1, 2018, Australians over 65 years old will be able to channel up to $300,000 of the proceeds from the sale of a single home into their superannuation.
This is an exciting change, offering massive benefits for older Australians who are ready to downsize. However, in order to move on from your home you need another place to go.
Here are a few things you should look out for when hunting for that perfect downsizing home.
Are you thinking about putting your home on the market this autumn? March through to May are the most active months for prospective buyers, with 26.7 per cent of sales over the past 30 years transacting within this year, reports CoreLogic Australia.
Now may be the best time to consider selling – but is your home market-ready? Check out these three tips to get your slice of Australian real estate fit for sale.
- How millennials are affording to buy their first homes August 29, 2018
- Reasons why you should refinance your home loan August 21, 2018
- What is negative gearing for property investment August 14, 2018
- How to purchase your next car with a car loan August 8, 2018
- 4 things to think about when choosing which suburb to buy in August 1, 2018