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1

May

2015

Low interest rates

The current housing market has interest rates at historic low levels. As an investor in this market, it would be prudent to take advantage as much as possible from these low rates. Below are some ideas that may benefit the current property investor and or the first timer.

It goes without saying that a regular review of your finances is not only a good idea, but nearly imperative especially in a market that has good competition. The various banks and financial institutions are currently very competitive and fighting hard to win your patronage. As with most specialized fields, an expert in this area is always recommended. Financial brokers will work for you and get paid brokerage fees from various institutions. It is therefore important to know someone you can trust who will find you the best deal and not themselves.

Please read the link below from a previous newsletter to find a reputable mortgage broker. MORTGAGE BROKER

When making an informed decision about your finances, always remember to make sure you include an offset account as an overall strategy. Again your mortgage broker can advise you in this regard. 

 Please read the link below from a previous newsletter to find a reputable mortgage  broker. MORTGAGE BROKER

 When making an informed decision about your finances, always remember to make sure you  include an offset account as an overall strategy. Again your mortgage broker can advise you in  this regard.


One of the lessons a successful investor learns is not to take on bad debt. The temptation is there to now borrow against your equity for those few luxuries in life such as a holiday, new car or boat etc. Remember, these items do not create wealth and as such should be paid in cash or taken out of your current cash flow. Another important factor is to consider to reduce and payout these loans or bad debt if you have already succumbed whilst interest rates are still low.

Another important aspect of low interest rates is to take advantage by reducing your overall debt. This can be achieved by making extra payments or regulating your payments as if interest rates where high. End result will be more equity and less debt.

Lastly, it is a contentious issue for some, but whether to fix rates while they are low is another aspect of your finances for consideration, especially when interest rates are this low. A previous article can be read on this matter by the link below

Fixed or variable

 

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