We enjoyed a fabulous day last Saturday and we are sorry if you missed it. Fantastic updates on depreciation from the extremely entertaining Tyron Hyde from Washington Brown and the extremely knowledgeable Leah Supple from Ban Tacs’ new Melbourne Accounting office.
Greville Pabst from WBP Property Group and “The Block” showed us the ins and out of what property to buy and how he values real estate, plus Terry Ryder from Hotspotting gave us the nitty girtty on why areas increase in value. Bernadette Janson proved the value of AirBNB when renovating and I gave an update on latest concerns in finance and there are PLENTY!
So what is happening with Interest Rates?
If you have owner occupied debt – and you are paying it off through principal and interest repayments, then you can get the “BEST DEALS” on offer. Please note, the rates in brackets are the Comparison Rate*. Rates for these types of loans range from 3.69% (5.16%) fixed through to 3.74% (3.88%) with no offset, 3.79% (4.01%) if you have great servicing ability and want an offset and finally, 3.99% (5.31%) for three years fixed but must be P & I.
HOWEVER, if you are an investor who simply wants to pay interest ONLY, heaven help you! You are in for a nasty surprise as almost all lenders (except for some very keen second tier lenders) are making it as tough as nails to get a great rate below 4%. One lender is offering 3.88% (5.10%) if you pay principal and interest when fixing for two years and some second tier lenders will give you the same rate on your investment loan as on your home loan, if you borrow against them at the same time – even with individually secured loans for around 3.84% (3.87%)
*A Comparison Rate is to help you compare loans with all the regular fees and charges included over the course of a 30 year loan term. The headline rate is not everything but the comparison may include other features you cannot get on a standard loan.