Home Loans and Property News:
The initial costs of buying a home are usually to expensive for most buyers to consider investing in property. But with interest rates set to remain at its current low levels, and banks more welcome to approve 100% mortgages, home loan applications are increasing as many first-time-home-buyers begin enter the property market.
The past 3 to 4 years as seen property prices grow at a tremendous rate, which has attracted many buyers to look to property as an investment. Many investors snapped up properties with the intention of renting them out â€“ a buy-to-let investment. But, the supply of rental properties grew to fast and because of the low interest rates more people are looking to buy than rent.
This situation has once again thrown the question of whether you should Buy or Rent under the spotlight.
Letâ€™s consider the facts:
- Low Interest Rates means home loans are easier to manage. You monthly repayments on you homeloan are lower because youâ€™re paying less interest.
- The low rates are boosted Property Prices and they are increasing steadily, this means that youâ€™ll be paying more for your new home and youâ€™ll need a bigger home loan, but if you do decide to buy â€“ you investment should grow at a steady rate.
- When it comes to renting the supply is beginning to out weight the demand. This means that although you may be able to afford your home loan payments, renting may still be a better option since rental costs are dropping and should continue to getting cheaper.
Before deciding, speak to a home loan consultant and find out f youâ€™ll be able to qualify for a large enough home loan. Get yourself a pre-approved home loan certificate which you can then use to assess if youâ€™ll be able to afford a home of your own. Complete this Short Form online and a consultant will contact you.