It’s been said that Australians love to invest in property. As one of the most urbanised countries in the world, our familiarity with ‘bricks-n-mortar’ offers a sense of security compared to other investment types. A number of factors have combined in recent times to increase demand for investment properties.
Some of these are:
- Lending competition
- Negative gearing
- Foreign investment
- Self-managed superannuation funds
The potential impact on availability and affordability of housing in Australia has caught the attention of media and regulators alike. Consequently, new property investors will find it harder to enter the market.
The average household has watched-on in bemusement at the sensational world of property investment and hair-raising headlines. In the meantime, an air of uncertainty and record-low interest rates has prompted Australians to pay-down their home loans faster than required.
Do you feel that financial freedom through property is the domain of a select few?
Many people externalise property investment without realising that perhaps the best investment decision they ever made was buying their home. Increasing your wealth by adding value to your home is not as challenging as you might think.
With an excellent payment history and record-low interest rates, people will be amazed at how much financial freedom they may have, by simply re-financing to a better home loan deal.
Refinancing to renovate is the most popular reason for refinancing according to the Mortgage and Finance Association of Australia (MFAA). Fresh competition amongst lenders for owner-occupied home loans means today is the perfect time to ask for an amazing new deal on a home loan.
Related Reading: 'Don’t give up on your dreams. Simply use a bridging home loan'
Why refinance?
First and foremost, the loan you applied for then may not be the best structure for you today. Improving your home is a great opportunity to review your home loan and see if it still meets your needs.
Contact your lender now and ask them about the best option for you today.
Secondly, using a new home loan finance package to improve your family lifestyle by renovating, such as creating more space, is a common reason.
Handled well, home improvements can also increase property value. Lenders will ask for a detailed explanation of your plans. Carefully consider your options by talking with an accredited finance professional with experience in the local property market. They will consider your individual circumstances and advise the most effective improvements to make and the right home loan package to support your wealth creation goals.
Handle with care
We spend our days talking to people about refinancing. In our experience people should carefully consider the following situations:
- Personal
- Have I done my homework on costs?
- Is my budget driven by emotion?
- Am I overcapitalising i.e. sunken money?
- What if my financial position changes?
- Repayments increase.
- Interest rates increase.
- Property prices fall.
- Redundancy.
- Property
- Not all renovations add value.
- Don’t overcapitalise in the wrong location.
- Only add functional space.
- Improve outside space before tackling inside rooms.
- Use different scenarios to choose rooms.
- Consider builder and materials wisely.
One simple conversation about your current situation could improve your financial position; improve your lifestyle; and the value of your home - all at the same time.
Now that’s financial freedom.
Related Reading: 'Boost your home loan chances'
Got some home improvement ideas?
If thinking of home improvement, it pays to know in advance how much you’ve got to spend. Talk to us today about a great deal on a new home loan finance package.
At Loan Avenue we know one size doesn’t fit all. It pays to have a conversation with a real person who wants to hear your story and run through some examples with you. Why not incorporate a discussion about refinancing as part of our free no obligation home loan review?
It’s just one of the many features and benefits included in a tailored home loan from Loan Avenue – affordable home loan solutions for everyday Australians like you.
Let us show you. To make an appointment with one of our experienced and accredited finance professionals call 1300 56 26 28 today or leave a message here.
