Property tips and tools

Homeowners who fixed their rate back in 2007 are paying around $650 a month more on a $300,000 mortgage and probably still have another year of being locked in. Chances are these homeowners have already been dealt the harsh reality that if they break their expensive fixed-rate loan in favour of another, cheaper fixed rate, they’d be no better – if not worse off.

The extension of the First Home Owner Boost, announced in the May federal budget is a two-edged sword. There is no doubt the boost, which doubles the grant on existing homes to $14,000 and trebles it on new homes to $21,000, has helped many people buy their first homes.

A surprise move from the NSW government to slash stamp duty on new homes has been lauded by industry experts as a vital step in alleviating the chronic shortage of housing in the state.

I’ve had a money reader gripe about redraw which really surprised me, but before I get to that I should explain what redraw is for those who may be hazy about it Redraw is a facility that’s available with most home loans. It allows borrowers to make extra loan repayments when their cash flow allows, and access to the funds whenever, and for whatever, they like. It’s a great feature to have on a loan because it saves you money.

Tenants who don’t pay the rent and cause damage are a landlord’s worst nightmare. If you own investment property the key to success is to choose good, reliable tenants. Whether you select them or use a property manager to do it for you is something you need to consider. No matter who does it, do not let anybody occupy your precious premises until they’re thoroughly checked out.

Interest rates are a major talking point for Australians and rightly so: after all a mortgage is often the biggest financial responsibility facing families.