Mozo’s 8 resolutions for property success
Resolutions give us the chance to improve our quality of life physically and mentally. But for a lot of us, bettering ourselves begins at home, literally. If your home is your pride and joy, you might spend your days scrolling through Pinterest on the hunt for your bedroom’s next decorative piece. But if success is what you’d like to bring your property in 2018, Mozo’s Property Expert, Steve Jovcevski has 8 property resolutions for you that could help bring property success.
Get a property market education
No matter if you’re an ametuer or a pro, when it comes to the property market, throw yourself headfirst into everything property in 2018. But if you really are a newbie and don’t know where to begin with your education, recent property developments, price predictions, interest rate forecasts and regulation changes are just some of the many places to start. All this knowledge will then help you make better property decisions in 2018 and the years to come.
Give your home loan a checkup
For a lot of Aussies, our health becomes a big priority in the New Year, so why not make your home loan just as big of a priority? Dedicate a day to reviewing your home loan to search for any opportunity to save money. For example, depending on your circumstance, you might be better off downgrading to a basic loan if you’re currently paying for features your don’t use or need, like service fees.
Consider refinancing your loan
In 2017, tougher and stricter lending criteria saw interest rates feel the pressure, particularly for Aussies repaying a principal and interest loan. And you might be surprised to know that rates are expected to stay at record lows this year, which for savvy homeowners, could mean the perfect opportunity to refinance their home loan. According to Mozo research, the average borrower with a typical 30-year loan could save up to $2,039 a year by switching to the most competitive rate.
Add a granny flat
These were all the rage in 2017 and rightly so. Adding a granny flat is a great way to earn some extra cash and add value to your home which, depending on your area, could be anywhere between $100,000 to $200,000. Granny flats are also a great option for parents with newly married kids as it can help them save for a deposit, without invading their privacy.
Cash in your equity
Due to the increase of property prices in Eastern seaboard cities, many homeowners are currently sitting on some decent equity. This might be the perfect opportunity to grow your savings pile by taking out a line of credit with the bank and putting it towards a deposit for an investment property or share portfolio.
Embrace the property investor mentality
Even if the closest thing you’ve had to an investment is a KeepCup, it doesn’t hurt to think like an investor. It’s always a good idea to constantly think about ways you can add value to your home, like transforming an unused room into an extra bedroom or trying your hand at AirBnb.
Fast track your deposit
There’s no denying that saving for a deposit is tough, especially when we all enjoy our little luxuries every now and again. But this year, make a commitment to put aside at least a third of your income each week. While you’ll turn into an incredibly frugal spender, you’ll also be getting closer to a deposit everyday. And if that’s not an incentive to start a tighter budget, remember, buyers with a 20% deposit avoid paying LMI and have a better chance at negotiating interest rates with a lender.
Become a rentvestor
Did you know that Australian property prices have risen by 618% in the last three years? So it’s not surprising that Aussies have taken to rentvesting as a way of getting into the market. Rentvesting involves renting in the area you want to live, while buying somewhere more affordable. According to Jovcevski, potential investors looking to rentvest in 2018 should research beforehand and pay close attention to suburb vacancy rates and proximity to amenities, like public transport or shopping centres.
If you’re ready to make 2018 your year for property success, you might need Mozo’s home loan comparison tool, which compares 500 home loans from 80 lenders.