With the New Year upon us, it’s time to reflect on 2012 and think about what we wish to achieve over the coming 12 months
The New Year is the perfect time to evaluate your past decisions and assess your plans for the future.
Whether you’re looking to build an investment portfolio this year, renovate your existing home, or simply stay on the financial path you paved in 2012, planning is essential.
When creating your mind map for the year ahead you will need to consider a few factors from the year that was
First off, the cash rate took a tumble in 2012, and this is expected to remain relatively low for the foreseeable future. In December, the Reserve Bank lowered the official cash rate to 3% – the fourth reduction for the 2012 period.
With the cash rate now currently standing at record low levels, there are plenty of savings available, with many lenders opting to pass on some, if not all, of the December rate cut to borrowers.
Two days following the Reserve Bank’s monetary policy announcement, 13 lenders reduced their standard variable interest rates.
We received more good news in December, with new research suggesting Australia’s housing affordability woes are on the mend.
According to the Adelaide Bank/REIA Housing Affordability Report, the proportion of income required to meet loan repayments fell by 2.6% in the September quarter 2011/2012 to 31.8%.
This could encourage more buyers into the market, Adelaide Bank’s general manager Damien Percy said.
“Median weekly family income has increased from the September quarter in 2011 by around $250 per month,” Mr Percy said.
“The current low interest rate environment is encouraging many people to re-visit and weigh up the ‘buy vs rent’ equation,” said Mr Percy.
There are certainly many places in Australia where it is now cheaper to make loan repayments instead of paying rent
All things considered, now may be the perfect time to snag an affordable property with a low interest home loan.
Whether you are applying for your first loan or you want to reassess your current rate, the historically low cash rate and strong lender competition has paved the way for some lucrative savings.
On the other hand, if you’re looking to freshen up your existing property this summer, we look at the top five ways to add value to your home without costing you excessive time and money.
To discuss financial aspirations or new home dreams for 2013, contact us today.
Sincerely,
Dallas Shores and the team at Simplified Finance Broking.
