Take advantage of the current market
There are several benefits of the market this month, and it’s worth being aware of them so you can invest accordingly, or alter your approach.
Interest Rates
With historically low interest rates from the Reserve Bank, investors need to make sure they’re cashing in on the potential savings on the market and hanging on to them for as long as possible.
Independent mortgage broker network 1300HomeLoan managing director, John Kolenda, has noted that investors can now compare the rates they are achieving via www.testyourloan.com.au and see where they can get a better deal.
"The Australian Lenders' Index is exposing lenders to greater consumer scrutiny by proving monthly data on the major banks' performance," he said.
"We will continue to track and report on exactly what rates major lenders are delivering and whether consumers are benefitting or getting ripped off.
With rates changing out of sync with the RBA, it’s worth being on top of how your lender is responding to the rate movements.
For instance,"The Australian Lenders' Index has found that if you are a Westpac customer over the last five years, you have been delivered the most uncompetitive home loan compared to the other major banks," Mr Kolenda said.
"Data from the index has found that while Westpac increased its package discounting in 2013, it has been consistently the worst performer for the past five years."
"Westpac is now blatantly playing catch up to try and bridge the gap with the other major banks in order to boost market share," he said.
Winter Months
The other positive for the current market is the buyer frenzy we’re seeing in the winter months. This is leaving the door wide open for investors who are wanting to sell an underperformer, or really get a gauge on what the demand is for properties in their area.
Georgia Cleary, of BradfieldCleary, explains that “The hive of activity in the market has been well documented but with auction clearance rates in Sydney, as a whole at 10-year highs, shows people are back out to play. A few days ago we saw our clearance rates hit 88 per cent. Not a big deal? Think back to when the Sydney property market was sub-twenty percent, just 6 months ago.”
Motivated buyers, couple with people holding their stock out of the market until spring, is making it ripe to sell-on properties that are holding your portfolio back.
Just be aware of the conditions of winter, Ms Cleary warns, “Open times are very important.
"Keep the property warm and definitely take advantage of features such has fireplaces. Invigorating the senses with burning oils and candles can give a fantastic feeling of comfort. It is really important you draw inspiration from a stylist or your agent to give your property the competitive edge in winter.”