Problems and Answers to Rent or to Buy...?

Often we get asked 'Why should I buy?', and fair enough.. chances are you will buy something that will cost you as much per month for the mortgage repayment as it would to rent, but you'd be able to rent something a lot nicer for the same amount. So, here's some more of our thoughts;

Problem #2: I'd rather rent and wait to buy what I really want.

This sounds all well and good, and it means you get to live where you want, enjoy the lifestyle your dream of and so on. But in the broad scheme of things, is this really what you want?

As you spend this time of life, 'saving' to buy the dream apartment or house in the dream location, what is actually happening to you money? Are you really saving? While the bank balance may be going up, remember that you're still paying rent to live. And that rent, is filling someone else's pocket or paying off someone else's mortgage.  

So, is it better to rent or buy? Well, The way we see it is it's always better to buy, whether its the dream home or not. Find something in your budget, do some research and buy! Live in and make your mortgage payments be your rent! Then if you want to move, do so, pay rent, but have tenants pay off your mortgage while you pay off someone else's with your rent. 

This is fool-proof, it keeps the world going round and your money safe. And if you choose wisely, while you're saving for the dream home, the place you own may just double or triple in value while you wait. 

Easy.

 

Posted on May 27, 2014 .

Interest Rate Announcement - APR 2014

Another month goes by and as usual, www.domain.com.au update us with the current market analysis regarding the home buyers and interest rates. So please read through the following to get updated on whats been happening!
 

Interest Rate Announcement

• Rates remain on hold in a mixed economic landscape
• Unemployment steady as other factors continue to improve
• Housing markets remain generally active

The Reserve Bank has decided to again leave official interest rates on hold at its regular monthly meeting today. Rates have now been steady since the decision by the Bank in August last year to cut rates to a 60 year low of 2.5 percent.

The national economy continues to provide positive signs of improvement although outcomes remains mixed between regions and sectors.

The national seasonally-adjusted unemployment rate remained at 6 percent over February - the highest monthly rate since July 2003. Despite a flat unemployment rate, 47,300 jobs were created over the month. Steady rises continue in retail sales and construction with export activity also improving. The stockmarket continues to rise gradually although the recent upward trajectory of the dollar is contrary to the Banks preferred position.

Although official rates remain on hold, mortgage costs continue to fall as competition amongst banks for market share intensifies in a generally positive environment for home buyer activity in most housing markets.

Buyer activity in the Sydney weekend home auction market remains at record levels with the Melbourne auction market continuing to report solid results.

"The Reserve Bank has unsurprisingly decided to leave official interest rates at current settings over April. Although recent economic data has been generally positive with emerging rising trends in retail sales, construction and exports, outcomes remain mixed between states and regions.

Home buyer activity continues at the highest level for nearly four years, although recent strong prices growth particularly in Sydney and Melbourne is expected to moderate.

Although more positive signs continue to emerge on the economy, official interest rates are likely to remain on hold for the foreseeable future with any future move heavily dependent on the state of the jobs market.", says Dr Andrew Wilson Senior Economist for Australian Property Monitors.

 

Until next time!
The Wise Loan team. 

Posted on April 13, 2014 .

Interest Rate Announcement - FEB 2014

Each month, www.domain.com.au update us with the current market analysis regarding the home buyers and interest rates. So read through the following to get updated on whats been happening!
 

Interest Rate Announcement

• Rates steady in a mixed economy
• Unemployment up but other factors improving
• Housing markets rising on falling mortgage costs

The Reserve Bank has as expected decided to again leave official interest rates on hold at its second meeting for 2014. Rates have now been steady since the decision by the Bank in August last year to cut rates to a 60 year low of 2.5 percent.

Recent economic data however remains mixed with the Bank likely to remain on the sidelines until a clear trend in economic activity emerges - particularly in regard to unemployment.

The national seasonally-adjusted unemployment rate increased to 6 percent over January - the highest monthly rate since July 2003. Rising unemployment was however offset by recent increases in dwelling construction and retail sales together with a rising sharemarket and a positive export performance.

Although official rates remain on hold, mortgage interest rates and costs are falling as competition amongst banks for market share intensifies in a generally positive environment for home buyer activity in most housing markets.

Buyer activity in the Sydney weekend home auction market remains at record levels with the Melbourne auction market strengthening since last year.

"The Reserve Bank has as expected decided to leave interest rates on hold at its second meeting for 2014. Recent economic data remains mixed for interest rate policy with rising unemployment offset by improvements in a number of key areas of economic activity. The Bank will also be aware of generally strengthening housing market activity, particularly in Sydney where prices growth has approached record levels.

Continuing rising unemployment will be the catalyst for any future cut in interest rates although as a lagging indicator of overall economic activity the Bank will nonetheless be more positive about the prospects of an improvement in the general economy over the medium-term.", says Dr Andrew Wilson Senior Economist for Australian Property Monitors.
 

Until next time!
The Wise Loan team. 

Posted on March 19, 2014 .

Interest Rate Announcement - DEC 2013

Welcome to the end of 2013!! 

Well, for the last time month of the year, after a big year of a dropping market, the Reserve Bank has decided to keep interest rates on hold. No surprises there! So we are still hanging around  at that 60 year low of 2.5%

Posted on January 21, 2014 .