How an offset account could cut years off your home loan

Looking for ways to pay off your mortgage in record time? Whether you’re a seasoned investor or buying your first home, an offset loan can help you reduce interest payments, save on tax and pay your mortgage off years ahead of schedule. What is an offset loan? With an offset loan (also called an offset account, interest offset account, mortgage offset account or offset home loan) the borrower takes out a home loan and opens a linked savings or transaction account. The balance in the savings account is then ‘offset’ daily against the home loan. How an offset loan works With an offset loan, instead of receiving interest on your savings account each month, the account balance is offset against

Overcapitalising: what it is and how to avoid it

As a home owner or property investor, you may have heard the term ‘overcapitalising’. But what exactly is it and why is it considered bad? While adding a new deck or kitchen can increase the value and enjoyment of your property, overcapitalising can end up costing you more than you planned. Here’s a closer look at what overcapitalisation is, why it’s bad, and how you can avoid it and still increase the value of your property. What is overcapitalising? Simply put, overcapitalisation is when the cost of a home improvement is more than the value it adds to your property. For example, if you buy a property for $500,000 and spend $100,000 on a new outdoor kitchen area with timber decking and fanc

Herron Todd White - Month in Review May 2017

We’re approaching mid-year, the weather is cooling and, as at time of writing, our federal budget is about to be released – weather, time and politics – all agents of change. It’s with this backdrop that we discuss the factors that drive change in our markets across Australia. If you have a market of interest and you want to stay ahead of the things that move property prices, then we have the answers for you. Our commercial team have also provided detailed, local assessments of entry level industrial investment around the nation. Industrial property is often the first purchase for anyone wanting to step into commercial investment, so our team’s thoughts will prove invaluable to new players.

RBA Interest Rate Decisions May 2017

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. There has been a broad-based pick-up in the global economy since last year. Labour markets have tightened further in many countries and forecasts for global growth have been revised up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia’s national incom

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