Rates steady but signals remain mixed
As anticipated the Reserve Bank has decided at its final meeting for 2013 to again leave official interest rates on hold. Rates have now been steady for the past 4 months following the August decision by the Bank to cut rates to a 60 year low of 2.5 percent. The decision to remain on hold has been underpinned by apparent signs of moderating activity in the housing market.
Unlock the Secrets - The Power Of Equity
Many people have a fear of using their property as leverage to purchase an investment property as they fear risking their own home. However the risk can be somewhat minimised by having a decisive plan and exit strategy from the outset. As the investment property increases in value the Bank in normal terms would no longer require your own home to be part of the overall security hence the investment would be able to be considered as “stand alone”. As always buying in the right locality and the right type of property is crucial to your plan so be sure to carry out extensive research yourself in the first instance.
Also remember to obtain independent advice on what would work best for you is an important part of setting up any finance platform that you are considering.
As always, please feel free to call us at any time if you wish to review your current finances
Adrian Rogers - Director / MFAA Credit Adviser
Peter Cleary - MFAA Credit Adviser
Until next time...