Buying a property requires at least 5% deposit and that will need to be added to the stamp duty required in the state where the property is being purchased. Lenders Mortgage Insurance (LMI) will also be required however this premium can be collateralised. Collateralisation means the insurance premium will be added to the principal loan amount which will be paid with the normal repayments. Also, just to be clear, LMI is insurance for the lender not for the borrower. This is an insurance premium put in place to ensure the lender, who is believed to be taking on greater risk with a high loan to value ratio, doesn’t fail or go out of business. The borrower is required to pay this to protect the lender.
Depending on your circumstances it may be a good idea to get into the property market as soon as possible thus buying with as little as 5% deposit. Based on average Australian growth in the property market, can you afford to wait?
While most of us don't play in the same league as Mr. Buffett. Investors worldwide try to mimmick his strategies in hopes of achieving even a fraction of his success. So, when Buffett hands out free investment tips, the world takes note. Recently in a TV interview, Buffett surprised those whoJun 2011 READ ARTICLE
Property as an asset class dovetails right into an Australian investors psyche as Australians are true believers in brick and mortar. It's not just a belief but it's a trust that over time, property will appreciate. The standard protocol for an Australian property investor is to purchase the properJun 2011 READ ARTICLE
The median U.S. home price has declined 26 percent since a June 2007 peak to $170,500, according to data from Washington-based National Association of Realtors. Photographer: Chris Rank/Bloomberg Vincent Selleck, whose Sydney-based 888 U.S. Real Estate started finding foreclosed U.S. homes a yearDec 2010 READ ARTICLE