How to find your ideal property

Even though the Reserve Bank held back on another rate cut economists urge consumers not to take it as a negative message for the market, as it is actually becoming more affordable. In New South Wales we have seen the ration of household income spend on home loans decreasing, indicating that the pressure of mortgage stress is easing up in some areas of the country. And, excluding rate cuts that were passed during 2009, implemented to delay the global financial crisis, house prices are at their most affordable in the last five years so there is no reason for home buyers to hold back. Here are some useful ways you can leverage the recent sequence of rate cuts to work for you and some innovative ways to save money.

Rate Shopping for the Best Mortgage Deals

For consumers the best practical advice is to look into the rates that are on offer from your financial provider as there is a very realistic chance you are not getting the full benefits of the rate cuts passed down to you. What you have to establish is where better deals are on offer. Your interest rates will be calculated on a number of factors like the size of your loan, if you are a new or existing client, what the provider’s funding costs are and what the market competition is offering at the time.

It is during times like these that going to the effort of checking whether you are getting the best available deal can pay off, because there is always a chance you could save a significant amount by switching to a similar product with a more attractive interest rate.

Make sure you conduct a fair comparison and compare the short and long term costs of the different accounts. We undertook such a comparison via http://www.bankwest.com.au/personal/home-loans/home-loans-overview and found that applicable terms and fees can differ greatly between types of mortgage loans – not to mention from one provider to the next. You also need to take into account costs such as the charges for application and registration, discharge fees and monthly fees before you can make a decision based purely on interest. If you ascertain that the costs of switching might just lose your potential savings take an attractive comparative offer to your bank and see if they will be prepared to match it.

Shop According to Area Performance

And while the property market may have shown some signs of a revival in certain areas, it was lacking considerably in others. While the number of loans approved for new homes may have increased, the construction industry saw a 6.2% dip in activity, which is its lowest level since January this year.

In terms of areas, loans for new homes and construction for new homes saw a 5.1% increase in New South Wales, a 2.89% increase in Queensland, a 1.6% increase in Western Australia, a 28.1% increase in Tasmania and increases by 2.9% and 2.1% in the Northern and Australian Capital Territories respectively. Victoria saw a 9.1% decrease in new homes while South Australia also saw an 11.8% dip for September.

Building Your Own Home from the Ground Up

The Housing Industry Association has acknowledged the increase but has conceded that it has not been as broad based as what was anticipated. For those who are shopping on the market and want to ensure they get a good deal building a new home could be one of the most profitable options available in the current climate. Because of the industry slow-down the market has become more competitive and there are more contractors available to finish a job relatively quickly.

With the markets being so competitive home sellers are also pretty negotiable at the moment and you could find yourself in a position where you are in a position to afford a new home, especially as the jury is still out on whether further rate cuts will be issued this year.

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