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Fixed rates at lowest levels in 3 years
August 2012
An analysis by financial comparison firm ratecity found 46 different lenders have dropped their 3 year fixed rate loans since July - including the big four banks. “Three-year fixed home loans, which is the most popular term among borrowers, currently average 5.95 per cent"
There are other deals as low as 5.5 per cent. “We haven’t seen three-year fixed rates this low in more than three years, when we were hit by the GFC.”
While variable home loans are still the popular choice among borrowers, she expects the take-up of fixed rates to increased over the coming year.
According to the Australian Bureau of Statistics, fixed home loans finance in June accounted for just over 10 per cent of all mortgages. That represents an increase from 6.9 per cent in the same period last year.
Extract: Australian Property Investor News
Is it advisable for a landlord of a strata-title property to have insurance?
May 2012
Unfortunately, a large number of landlords think they are not required to take out some form of insurance for properties that fall under strata title, assuming that the property is fully covered by the owners corporation.
While the insurance policy taken out on behalf of the owners corporation does protect the actual building it does not provide protection for individual owners and their fixtures and fittings. For example if a burst pipe in the wall cavity causes considerable damage to the carpeting within an apartment, an owners corporation is only liable to repair the pipe and not the damage to the carpet.
Without insurance in place, a landlord is leaving themselves exposed potential liability claims, as the owners corporation policy will only cover common property areas and does not extend to individual lots.