Interest rate announcement – May 2017

Today the Reserve Bank of Australia met to review the official cash rate. After last cutting rates in August 2016, the RBA have again decided to leave rates on hold at 1.50% this month. Nonetheless, we have seen some lenders starting to increase their variable and fixed interest rates and we expect others to follow suit.

Choosing a property to purchase can be a difficult. We have put together some of key issues that we recommend you consider when assessing whether a particular property is right for you.

Make your own enquiries before purchasing

It is important to remember that your contract of sale contains the entire agreement between yourself and the Vendor. You can therefore not rely on any representations made by the agent or the marketing material that are not included within the contract of sale. It’s very important therefore that you make and rely on your own enquiries prior to agreeing to purchase a property. Some of the key general items of enquiry include:

  1. What financial return can you expect to receive from renting out the property?
  2. Is there any nearby development that may impact your views or your use and enjoyment of the property?
  3. Is the property located within the defined local enrolment area for the school you wish to send your children to?
  4. What are the annual strata fees and levies?
  5. Are you entitled to a parking permit from Council if parking permits are required in the area?
  6. For strata properties, do the by-laws restrict pet ownership?

Things to take note of when inspecting a property

  1. Have there been any recent significant additions or alterations (e.g. new kitchen)?
  2. For strata properties, are you purchasing subject to a strata renewal plan?
  3. Are there any major repairs required to the property or building (look for things like cracks in the wall).
  4. Check that all expected inclusions are specifically identified in the contract of sale and are in good working order (e.g. air conditioning, appliances, garage doors).

 

Our Current Best Interest Rates

The best home loan rates we currently have available:

  • Variable rate of 3.79% pa
  • 1 year fixed rate of 3.69% pa
  • 2 year fixed rate of 3.69% pa
  • 3 year fixed rate of 3.89% pa