There’s a lot more to a home loan than just the interest rate. The features of the loan can also have a big impact on your total mortgage costs and repayment flexibility, which is why it’s important to understand the potential benefits of a redraw facility and an offset account.
More and more Australians are turning to property investment, new analysis has revealed. CoreLogic’s head of research, Eliza Owen, found that the number of investors entering the market was exceeding the number exiting, by comparing home loans data with listings data.
Are you considering renovating? If so, you’re not the only one, because renovations are incredibly popular, with homeowners investing $2.84 billion on alterations and additions in the June 2024 quarter, according to the Australian Bureau of Statistics. Typical costs range from about $2,000 to $5,000 for bedrooms, $15,000 to $30,000 for bathrooms and $25,000 to $50,000 for kitchens, according to JDL Constructions.
Are you looking to purchase a property in Australia? If so, you’ll likely need to take out a home loan and are looking for tips as a first-time borrower. By the end of this article, you should understand how home loans work in Australia and what factors you need to consider when taking out a loan.
The latest home loans data from the Australian Bureau of Statistics reveals that home loans in Australia reached $29.19 billion in June.
Over the past five years, property investors in Australia have seen significant gains, with the national median rent increasing by 39.7%. However, in July, rent growth slowed to just 0.1%, marking the slowest pace since 2020, according to CoreLogic. While rental prices are still on the rise, the growth rate is beginning to ease across the country.
Home loan volumes have significantly increased over the past year, especially among investors. Investors committed to $10.67 billion of mortgages in May, according to the latest data from the Australian Bureau of Statistics. That was 29.5% higher than the year before.
Many Aussie expats use their time overseas to accelerate financially. Here’s how Australians living abroad are buying property back home and building long-term assets. Moving offers higher earning potential, global career experience, and the ability to accelerate financially in ways you can't back in Australia. Expats also recognise something else- the overseas window is powerful, but it isn’t permanent. This naturally raises the question: "How do I make the most of that time whilst I am here?"
Rental yield often attracts the first attention, especially for Australians living overseas who want stable income from their property. But yield alone rarely reflects long term performance. The stronger approach is to balance income, capital growth potential, and your broader plans while living abroad.
TLDR SMSFs can work for Australians overseas, but only if strict residency rules are met. Most issues come down to control, contributions, and time spent abroad. If those break, the fund can lose its tax status.
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