I interpret this data to mean that our residential property market will bounce back strongly over the medium to long term particularly in the beachside and leafy established suburbs.

My mail is a good percentage of the migrants are reasonably well healed folk looking for a little sunshine and a little less militant religious fervor.

Consider taking on a little debt and get yourself a piece of this good earth is my tip. I will not be surprised if values doubled in these areas over the next 5 to 10 years, because of demand.

Find a decent mortgage broker you can make a professional conection with. Even consider an equity finance mortgage. Remember, if the property value doubles, you will be sitting pretty.

I also recomend you take some insurance on your income and look to diversify your income.  A hobby can sometimes be a great way to supplement your family income.

Pay off your mortgage using the internet and your home pc.

Major Australian Lenders.
Investment property home loans.
Interest only, one year fixed interest rate.

No comparison rates are supplied as the rate is for investment purpose only. Borrowing costs and other fees may be tax deductible over one or several years.

Lender, rate, max LVR with mortgage insurance, application fee, monthly service fee.

ANZ 8.34% 97% $600 $10

CBA 8.69% 95% $600 $8

NAB 8.69% 100% $600 $8

St George 8.54% 95% $600 $10

WESTPAC 8.69% 100% $750 $8

This is just a snapshot to give you an idea of what’s currently available, the terms and conditions of each loan are available from your mortgage broker or direct from the lender. Products may vary from lender to lender, but are for one year fixed, interest only, investment home loans advertised by the lender as at 21/09/2008. I think Interest Only Home Loan one year fixed rates compare favourably with the standard variable home loan rates of the major lenders and give the borrower some flexibility in times of mortgage stress.

Remember, your home loan funding is an important part of your plan to create wealth through property investment. Interest only home loans can give you the edge.

The real question here is how comfortable you are with being in partnership with your mortgage holder. It is very likely you will make a profit when you sell your house, so will you be ok cutting the Mortgage Lender a check for 40% of your profit. I mean if you buy a house today for $400,000 (including all fees and stamp duty) with the help of an Equity Finance Mortgage loan and sell it for $500,000 in six months, will you be happy to send your Mortgage Lender a check for $40,000? If you think this will be ok, then I say you can have a chance at a successful partnership with your Mortgage Lender and an Equity Finance Mortgage should be one of your options.

An Equity Finance Mortgage has great potential to help owner occupiers leverage their current buying power and afford a better address or even survive a credit crisis. For example, a first homebuyer who may only afford a property worth $400,000 may be able to purchase a property for $500,000 with the help of an Equity Finance Mortgage. A current home owner may be able to refinance to reduce current monthly mortgage repayments by as much as 20%, and free up their cash flow for other important family expense’s or to top up their superannuation.

The new Equity Finance Mortgage needs to be evaluated whatever your situation. I suggest you ring your Mortgage Broker and find out if you can make it work in your favor. Mortgage rates will always fluctuate, just look at the historical rates, but the right sort of Mortgage Loan will make life easier.

If you are thinking of buying a home, adding to your property portfolio or about to embark on your first investment property purchase, it is time to get to know a competent finance professional. Your finance can make or break you, It is as important as location is to your property choice.

There is little doubt that we are in the midst of a credit squeeze. Banks and other lending institutions have tightened their assessment criteria for new loans and refinance across the board. It is now much harder for Mortgage Brokers to get approvals for Low Doc and No Doc loans. Some lenders have stopped taking applications for No Doc loans altogether and many have reduced the maximum LVR for Low Doc loans down to around 65%. Even full disclosure (Full Doc) loans are being scrutinized more thoroughly. So it is harder to get new money and generally you will be paying more for it.

My advice for owner occupiers and current/prospective property investors is to renew your friendship with your mortgage broker or find a new one. Invite them around for a cup of coffee and have them bring you up to date with how the current lending environment effects your situation. Get close to them, make yourself their favourite customer so they will give you the good service and advice you need and deserve. Remember, the finance is as important as the property you purchase with it.