Invest
Property investors should stay positive about borrowing
Changes to how lenders are allowed to loan money to investors have made borrowing more difficult and more expensive, but if the property is right for the investors they shouldn’t be dissuaded.

Property investors should stay positive about borrowing
Changes to how lenders are allowed to loan money to investors have made borrowing more difficult and more expensive, but if the property is right for the investors they shouldn’t be dissuaded.

A number of major lenders in the market have reduced their lending value ratio to 50 per cent as part of a move to constrain investing, and the gap between the interest rate on interest-only and principal and interest loans is now large enough to offer as much as a 70-basis point saving depending on the lender, according to James Grima.
Mr Grima, a managing partner for mortgage and finance at Omniwealth, said these changes “are making it more difficult for borrowers to refinance their loans”, especially for those seeking interest-only repayments.
“There is not enough financial incentive for these clients to change lenders unless they opt for principal and interest repayments,” he said.
However, Mr Grima said investors shouldn’t be put off buying a suitable property despite the increasingly difficult borrowing environment.
“On the positive side, lenders are offering very attractive rates, fixed and variable, for principal and interest loans secured by owner-occupied property,” he said.
“The interest rate difference between interest-only and principal and interest-only loans is approximately 30 basis points and for this reason, an increasing number of clients are choosing to change their repayments to principal and interest.”

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more