big deal of a property".
is said that the biggest investment
Australians will make in their lives is the purchase of a
house. The majority of Australians by the age of 17,
already have a foot out the door of their parent's
home, or are intending to leave and share an apartment
with a couple of friends. In this period, some of
them will change address many times including the cities,
in accordance with the jobs offered.
them, will start saving money to buy a car or plan to buy
a house. Buying property in Australia has became
very easy, since the government started offering a
"First Home Buyers Grant". If a person has saved
a 10% deposit on the value of the property and a steady
job, the banks will finance the mortgage. Many cases
exist, where two or more friends buy a property in
partnership to get profits in the short term reselling the
property. With the profit shared between them, they go
solo, each one purchasing their own property.
financings are known as Mortgages, and are offered
directly to the public by most Australian banks. The
average Australian mortgage is for 25 years with
repayments often being cheaper than a normal rent. The
Australian interest rates are currently sitting at 5.25%
(Feb, 2004). The interests are adjusted periodically
by the banks in accordance with the market. Each bank has
the freedom to charge interest at different rates, so it
is a great idea to shop around for the best rates before
signing any contracts.
in accordance with your financial possibility, you may be
able to refinance part or the whole debt. You can
pay higher installments each time you have an excess of
money in your pocket, which will decrease the debt
and the period it is paid off in.
in Australia went through a boom in 2003 with houses
increasing in value somewhere between 10% and 55% in just
one year. How are you going to earn that much? Real Estate
agents and other experts in the market are advising
caution before selling your home to purchase another one.
In some cases, if you take longer to buy something else,
you may have to increase the amount of money that you want
to spend, due to the rapid acceleration of the market.
Also, some experts are advising that interest rates will
rise in the next 5 years or so.
important thing to be aware of, is that certain small
cities may present a negative growth due a closing of a
factory, lack of medical assistance and other factors.
This can represent a loss to you if many people sell their
properties and leave town. This is rare, but it is
important to be aware of it.
To have an
idea of the size and importance of the housing market in
Australia, a person who initiated the purchase of a
property at 23 years of age, when reaching 35 years of
age, will have repaid approximately half of the
debt, and by 40 years of age practically the entire debt.
The result is that by settling the property earlier, you
will be able to get another mortgage, by re-mortgaging
your first property.
retirement, you can have paid off two homes with a
market value superior to one million dollars. Who Knows?!
Notice: yesaustralia.com has changed in January
2007 into a newer and more comprehensive
The English version on the new website is not
completed yet, so we recommend you stick with this
one for a while.