Research shows property still the best investment

Australia was one of the countries that came out of the GFC on top. Research now indicates that the housing market looks like it is going to take off again. Mortgage and Finance Association of Australia (MFAA) and BankWest recently conducted surveys finding that almost three in four  (73%) of respondents expect house prices to rise, which is the highest level of confidence in more than three years. 

Below is an excerpt from RP Data with relation to the research carried out.

“Phil Naylor, CEO of The MFAA said confidence in the housing market is not only pre-GFC – it’s back where it was during the height of the housing boom.

However, he warned that the recent interest rate increases are negatively impacting households.

The proportion of respondents who are struggling to meet their mortgage repayments have increased to 15.9% from 11.7% in May 2009.

About half of the respondents believe now is a good time to buy a new home, with almost two-thirds (63%) of South Australians saying now is a good time to buy. Queensland was the least optimistic at just 41.4% of respondents believing it was a good time to buy.”

First National Metro sales team is confident that this increase is a realistic expectation and sales results over the last three months are showing the trend towards this outcome.

Do you think the GFC is over for Australia? Let us know your thoughts in the comments.

Fundamentals Top Of Mind For Property Investors

Written by Michael Cant, Commonwealth Bank Executive General Manager Retail Products, for RP Data

Recent months have certainly been interesting for property investors. With the Australian economy turning the corner onto the road of recovery and three successive cash rate increases by the Reserve Bank of Australia between October and December 2009, it’s becoming more important for property investors to focus on having the fundamentals right when it comes to managing their investments.

No doubt that some, if not the majority, of property owners are feeling some impact from an increase in their mortgage repayments. However, if you’ve got the right fundamentals in place, you’ll find managing interest rate fluctuations a lot easier.

A simple way to assess how well you’re managing is to constantly review your budget. Do you have a strong, but realistic budget that allows for you to make extra repayments on your mortgage? Prepaying your mortgage when you can afford to will help knock off a lot of interest, especially during the first seven years, since the majority of the first years’ payments go towards interest only.

In addition, can you alter the frequency of your loan repayments? Going from monthly to fortnightly or weekly will deliver a positive impact on your repayments. This will not only be kinder to your cash flow but will pay a little extra off the home loan each year as there are more repayments calculated on a weekly or fortnightly basis in the calendar year.

Finally, and most importantly, always keep sight of your long term investment goals. By implementing strong fundamentals into your property investment plan now, you’ll make a big difference to your financial future.

For more information on property investment visit: www.commbank.com.au/propertyinvestor