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February 2014

House vs Unit: Which is the better investment?

It is a common debate among investors about whether units or houses are the best dwelling to purchase. Nationally 58% of all units are owned by investors compared to 21% off detached houses. Both have their pros and cons which you need to consider. Houses Due to the size and facilities of a house one of their key advantages is that they can accommodate a wide range of tenants. From families and roommate sharing to retired couples, houses have a large market. As you also own the land it is a lot easier to renovate and expand if your plan …

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First Home Owner savings in WA

If you are a first home buyer there are a number of incentives in Western Australia to make purchasing a new property easier and more affordable. First Home Owners Grant (FHOG) First home owners purchasing or building a new home may be eligible to receive a grant of $10,000. First home owners purchasing an established home may be eligible for a $3,000 grant. There are no income or assets tests to qualify for the FHOG.  It is a genuine grant that you don’t have to repay; nor do you pay interest on it. The FHOG applies to residential dwellings only …

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Why you need income protection insurance

Income protection insurance is designed to provide up to 75-85% of your monthly salary in case you are unable to work due to an illness or injury. While it can easily be seen as an extra expense, there are a number of important reasons why you should seriously consider it. For example, it can help you: 1. Stay financially secure. When you’re unable to work for an extended period, your employer might be forced to let go of you. Or if you have your own business, you might have to put it aside to focus on your recovery. Either way, …

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12 Packing tips for moving

1. Have all necessary supplies for packing. Male sure you have boxes, tape, bubble wrap, markers, tape measure and anything you may need. 2. If you have the original boxes for your electronics such as televisions, computers and DVD players it is recommended you use them as they are safer and are easier to identify. 3. Pack each box by the room and label them. So for example put everything being transported from the kitchen in the same boxes. If possible try and highlight them with different colours so it’s easy to identify which boxes belong to each room to …

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How an Equity Guarantor can help with your deposit

This type of loan is appropriate when the applicant/borrowers’s (your) income is enough to cover the loan and repayments but they do not have the required savings for a deposit. The maximum lending usually available is 95% of the property’s purchase price so generally a 5% deposit is required. Saving this amount can often be difficult, especially when paying rent, so a guarantor can service minimum 20% of the loan to allow the applicant to borrow up to 100% of the purchase price. Guarantors are usually limited to immediate family members. Another benefit of having a guarantor is that the …

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February 2014: Interest Rate Bulletin

Statement by Glenn Stevens, Governor: Monetary Policy Decision At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. Since the Board’s previous meeting, information on the global economy has been consistent with growth having been a bit below trend in 2013, but with reasonable prospects of a pick-up this year. The United States economy continues its expansion and the euro area has begun a recovery from recession, albeit a fragile one. Japan has recorded a significant pick-up in growth, while China’s growth remains in line with policymakers’ objectives. Commodity prices have declined from …

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Top Sydney Suburbs 2013

Sydney had the strongest year of any capital city nationally in terms of rising dwelling values with a growth rate of 13.7%. It is also home to the richest suburb in the country, Point Piper with a median value of $6,312,475 while units are most expensive in Dawes Point ($2,452,651). Ungarie situated in Central West NSW is the most affordable in Australia with a median value of just $62,000. Woollahra has the top three dearest suburbs and is the only council area to have a suburb with a median home value of over 3 million. At the other end of …

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10 Steps to buying a home

1. Research the market To make a wise investment you will need to do research to make an informed decision. This includes learning as much as possible about the area you plan to buy into. Study the local property listings of similar houses, in the paper or on the internet,  and attend property viewings to get an estimation about what purchase price you should expect to offer. 2. Do the figures After you have an idea of what properties are worth it’s important you work out what you can afford. Use our calculator http://rdfinance.com.au/rate-calculator/ to determine how much you can …

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Top Perth suburbs for 2013

The Perth housing market had a strong twelve months recording the second highest increase in dwelling values (8.6%) of all capital cities nationally. The latest statistics from RP Data reveal the top Perth suburbs for 2013, to briefly summarise: Peppermint Grove is the richest suburb in Perth with the highest median house value and for weekly rent. In fact the median house value was over a million more than Dalkeith which was the second most expensive. Kwinana and Armadale have eight of the ten placings on the list for both most affordable house values and weekly rent, Rockingham make up …

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