Time for property borrowers to take action
In the wake of rising interest rates Australians need to be more commercial and make sure they are getting the best deal on their mortgage, according to Count Financial founder and chairman, Barry Lambert.
In an announcement, the LoanDolphin shareholder said record house prices and elevated debt meant that Australians would be working for longer to clear the heavy mortgage debt load, limiting capacity for investment outside of the home property, which was necessary to build a retirement nest egg.
Lambert said investors should secure the best deal for their mortgage, put their loan up for auction to get banks and brokers to fight for their business, set clear targets to pay down their mortgage, and reconsider if holding excess investment properties was an appropriate wealth creation strategy.
He noted that the issues that could negatively impact borrowers in the future were the increasing interest rates on owner occupied and investment property loans, rising interest rates in the US, reports of pending oversupply of apartments, potential changes to capital gains tax and negative gearing rules, the potential expansion of the land tax, and banks reducing their lending to investors to curb demand.
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