According to the Bank of International Settlements, house prices in Australia have increased by 6,556% since the 1960s. This amounts to an impressive average annual growth of 8.1%. Long story short, property investors have certainly made millions through buying and selling property, and that’s before we even take into account the earnings from rental properties.
The Great Aussie Dream, the one where we all own a home, can be challenging in reality. With housing costs on the rise, paying the full amount in cash simply isn’t an option for most people anymore and this is the reason home loans exist.
The median house price has gone up yet again and has now reached a whopping $1,000,500 in Sydney and $715,549 in Melbourne. With the rising cost of housing in Australia’s capital cities, it’s becoming increasingly challenging, even unaffordable to get into the property market. Given the recent housing pricing trends, investors and aspiring homeowners have begun looking elsewhere for their next property.
Mortgage insurance, also commonly known as lender’s mortgage insurance or LMI, is used to protect lenders in case a borrower defaults on their loan. It is important to understand that LMI does not give the borrower any protection and in fact the insurer could come after the borrower for any shortfall in recovered funds.
When you have invested big money in buying a property with the aim of earning rental income, it is sensible to protect your investment with a well-structured landlord insurance. This protects your property against damages and keeps you financially prepared to meet emergency repairs.
A property title is a legal document that indicates the owner’s right to possession or ownership of the property. Whether you are new to property investing or an experienced investor, it never hurts to gain more tips on investments you are making and likewise, know more about the type of property that you are purchasing.