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Recently we wrote about what will happen to all those people who have a fixed rate loan expiring soon. You can read that article here … What happens when a fixed rate home loan ends? We received quite a few questions about what type of loan is best, so today we will try to summarise and simplify things. Of course, it is important to understand that the information here is of a general nature, and it does not take into account your financial circumstances, financial goals, or needs. Before you make any decision it is important that you seek personalised professional advice. If you are considering a home loan and you’re wondering which type of loan is best for you, fixed rate or variable? Or even a combination of both, it is important to understand what the difference is. And of course, what are the pros and cons of each? Fixed Rate Loan A fixed interest rate loan gives you certainty about what your interest rate is. And therefore what the repayme...

When deciding which type of lease is right for you and your rental property, it’s important to consider your needs as well as those of the tenant. Furthermore, if you’re a landlord, it’s important to remember that a fixed-term agreement provides more security and the potential loss of income is far lower than with periodic tenancy agreements. As a Property Manager, we recommend these should be kept to a minimum in your portfolio. Ultimately, whichever lease agreement you choose will depend on your own individual requirements and those of the tenant. What is a periodic leasing agreement VS a fixed term agreement? When it comes to renting a property, there are two main types of tenancy agreements: fixed-term leases and periodic leases. With a fixed-term tenancy agreement, the tenant agrees to stay in the property for a set period of time, usually for six or twelve months. This agreement is not flexible and any changes would need to be re...

As a local real estate agent, we are fortunate to be able to talk with a lot of people every day. The topic of conversation that is most often discussed at the moment is about rising mortgage interest rates.  Especially what will happen when a fixed rate loan (at a low rate) expires? In 2020 and 2021, many borrowers in Australia locked in low-interest fixed rate home loans due to the historically low cash rate. However, the fixed rate period of most loans is typically between 1 and 3 years, and as a result, borrowers who took out these loans may be fast approaching the end of their fixed term. If they let their fixed rate home loan expire without taking any action, it will revert to a variable rate that the lender offers, which could be much higher than other variable interest rates on the market.  As of today the big four banks have variable loan rates around the 6.24% range.  This is a massive increase on the fixed rates that may have been as low a...

Since the start of 2023, we have seen a large increase in the number of people looking to buy properties on larger blocks, with a view to developing them further. This is a trend that is being seen right across Brisbane. Sales data on realestate.com.au shows 88 properties sold for more than $1.6m in Brisbane in the past month.  Most of these were larger block properties. Interestingly the rising interest rates do not seem to be having an impact on these investor buyers. There are two factors at play here.  Firstly investors are buying these properties with an eye on splitting to block into smaller lots.  The second factor is as these larger blocks get developed then the ones that remain become more and more scarce, so other investors are looking to buy and hold for the long term. Some of our neighbouring suburbs have gone down the road of having the blocks split and the houses cut up to be fitted on the block and then thrown in one next door. In...

Something very interesting has been going on In our local area. Since interest rates have started to move up we have seen a decrease in property prices.  This has been going on for 12 months now. Everyone knows that. What it means is that some suburbs have become great opportunities for wise investors. This becomes even more obvious when we study median prices in suburbs and then compare them to the neighbouring suburbs. It is for this reason that we are declaring Everton Park and Everton Hills as the Best Investment Suburbs on Brisbane’s northside in 2023. Take a look at these numbers. Everton Park, which is just 8km from the CBD and close to the airport, great schools and hospitals, has a median house price of $886,865.  Next door Everton Hills (still only 10km from the CBD) has a median house value of $868,000. A factor that many property investors take into account is what is the potential for capital growth when they ...