V o l u m e 6 I s s u e 7 J U L Y 2 0 1 5 H A R C O U R T S N O R T H G E E L O N G N E W S L E T T E R

HARCOURTS NORTH GEELONG 127 SEPARATION STREET NORTH GEELONG 3215

P: 03 5278 7011 F : 03 5278 5555 E:NORTHGEELONG@HARCOURTS.COM.AU

WWW.NORTHGEELONG.HARCOURTS.COM.AU WWW. FACEBOOK /HARCOURTSGEELONGNORTH

The new financial year is the monetary

equivalent of January 1 – a time to take

stock, a time for plans and resolutions, a

time for changes. The financial review that

inevitably accompanies the approach of

June 30 and tax time is a great opportunity

to also review property holdings and plan any

changes. This applies to all homeowners, not

only to those with investment properties.

For investors the new financial year is the ideal

time for a portfolio review, to think about divesting

underperforming assets, adding value to holdings,

for example through improvements, and effective use of

equity and tax effective loans. Don't let your portfolio stagnate.

Look ahead to 2015-16. Research vacancy rates and yields,

prices and affordable locations with scope for capital growth.

For homeowners planning for the financial year ahead, take into account whether your existing

home serves your needs. Is it the right size, in the right location, the right school zone, is it where

you want to be in five years? If not, why not and what can be done?

Coinciding changes such as a move from the city, to a bigger house, better suburb or downsizing to

an apartment with the start of a new financial year makes sense. Of course the change does not

have to happen on July 1, but accounting for it in financial planning for the new business year will

Michael Altshuler

ARTICLE EXTRACT WWW.COM.AU ENZO RAIMONDO (CEO Real Estate Institute of Victoria)

The cold snap has swept across the south / east coast of Australia, and Geelong has felt every bit of it, which is almost like real estate, with Sydney, Mel-bourne, Brisbane & Adelaide experiencing strong market growth (in that order) (RP CoreLogic). When the markets are so strong around you, there has to be an effect, and it has filtered through this CIty by the Bay. The government is trying to stop the ex-tended increase in prices by pressuring the lending institutions and in particular, area of lending require-ments on investment properties. The banks have obliged by not lending over 80% (you can still cross-collaterate) and by not discounting on their market-ed rates. This will in turn mean less competition for investment properties, so there will never be a better time to buy your next (or first) investment property. The RBA has constantly indicated there are no intentions to lift interest rates in the near future and most economists believe it will be well into 2016 before rates are moved. So it is a great time to buy and bed down your investments, in preparation of market cycles and interest rate rises. We can help by appraising your investment property or even your

home to help you discover what equity you may be holding in the current market. Here are a few properties worth examining:

GEELONG WEST 54 Weller Street 3 Bed, 1 Bath, 1 Car Rental Potential $300 PW Highly Sought After Location

AUCTION 8th August at 1.30pm

CORIO 14 Canadian Parade 3 Beds, 1 Bath, 1 Car 595 sqm in Growth Zone Current Rental $235PW With excellent tenant $215,000-$235,000

BELL PARK 2B Libau Ave 2 Beds, 1 Bath, 1 Car Brand new double storey townhouse with expected rental of $330pw

$336,900

2 & 5 Inc. is a social enterprise set

up to address food insecurity in the

Northern Suburbs of Geelong by im-

proving access to affordable, sustain-

able, fresh and healthy food.

This is achieved by providing high

quality fresh produce through prod-

uction and retail.

WHAT THEY DO:

Fresh Food Shop & Café located @

13 Labuan Square, Norlane

Corporate Fruit Boxes delivered to

your workplace

A large range of Jams & Chutneys,

available at the shop and selected

shops in Geelong

A Market Garden

FOR MORE INFORMATION:

Phone: (03) 5278 9292

Web: www.twoandfive.org.au

HARCOURTS NORTH GEELONG 127 SEPARATION STREET NORTH GEELONG 3215

P: 03 5278 7011 F : 03 5278 5555 E:NORTHGEELONG@HARCOURTS.COM.AU

WWW.NORTHGEELONG.HARCOURTS.COM.AU WWW. FACEBOOK /HARCOURTSGEELONGNORTH

Disclaimer: Information in this newsletter is believed to be correct at the time of publishing and is not specific advice. No guarantees are provided by the publisher.

Choosing a fixed rate is about managing your future risk. Will rates continue to fall or will they start to rise in the future? The question needs to be asked, how far into the future are you planning for? You actually have many options, you can fix your whole loan amount or choose to split your loan into various portions. For example, a portion of the loan fixed and a portion variable or even have multiple fixed portions over different time frames e.g. a portion fixed for four years and a portion fixed for three years etc. People considering fixed rates, need to be aware of possible exit fees. Although it is widely promoted that exit fees have been banned on all new home loans in Australia, this isn’t always the case. Lenders can still legally penalise you for exiting a fixed rate loan during the fixed rate period, but this fee is usually called a ‘break fee’. Break fees can easily be upwards of $10,000, but you won’t necessarily see it written in your loan con-tract as a dollar amount, so be aware and ask if you’re unsure. WHY OPT FOR A FIXED RATE MORTGAGE? The main reason for taking on a fixed rate mortgage is it eliminates the risk to you that comes with a variable rate mortgage, offering you a fixed repayment amount, with a known interest cost for a definite period of time. However, what you need to consider is what might also happen during this fixed rate period. Will you need to sell the property? Are you planning a family & may need to reduce your loan repayments down? Or worse still if you have a joint loan with your partner how strong is the relationship. Divorces are sad, messy & expensive and with a fixed rate to break they can be more expensive. IS NOW A GOOD TIME TO LOCK IN A FIXED RATE? At the moment there are many lenders offering low fixed rates that are even lower than the standard variable rates being advertised. A fixed rate mortgage is an insurance policy against financial pressure brought on by mortgage rate movements, especially rapid ones that could cost you the farm. In the last 15 years there have been two periods of sharp rate increases. The recent one kicked-off in August

BY CEO MORTGAGE EXPRESS, SIMON DEHNE

2007 and another in October 2009. There have also been two periods of moderate increases starting in November 1999 and again in May 2006. So again, the point is, it does happen and you should think through your position carefully before deciding what is right for you. THINGS TO CONSIDER There is no doubt that in a climate of so much uncertainty, cheap fixed rates have become increasingly attractive. However you should remain mindful of the limitations of fixed rate loans before you race to sign on the dotted line. Check to ensure what limitations apply to extra payments and redraw and remember, just like the chance that rates will rise, there is a chance they will fall as well. Regardless of whether you choose a fixed rate mortgage or not, how you arrange your loan and the features you choose will have a significant impact on your finances and your life, whether you notice it or not. Looking for the best home loan rate on the market? Why not take a look at the top three loan products for your needs? Head to www.helpcompare.com.au for your free report. The above should not be considered as financial advice. We encourage you to seek independent financial advice for your situation.

WHEN: MONDAY 3RD AUGUST

TIME: 7PM TO 9PM

WHERE: VINES ROAD COMMUNITY CENTRE

(37-61 VINES ROAD, HAMLYN HEIGHTS)

REGISTER: PH 0407-874-549 OR EMAIL

FIONA@WISESELFDEFENCE.COM.AU

WEB: WISESELFDEFENCE.COM.AU

WHO: FIONA SKENE

In JUNE, the REIV Average

Vacancy Rate was 3.2%

The HARCOURTS NORTH

GEELONG RATE was a LOW 0.71%

The Festival runs throughout the entire month

of August and offers over forty seminars,

events & networking opportunities for those

seeking to start a business, grow their busi-

ness or up-skill. The festival provides an oppor-

tunity to access a range of technical infor-

mation & expertise at no cost or minimal cost.

The Festival is part of the broader and highly

successful Small Business Festival Victoria.

MORE INFO: enterprisegeelong.com.au/gsbf

Fiona is one of Australia’s leading self-defence instructors and a 4 time Australian

Champion In Taekwondo, who has represented Australia and became a bronze

medallist internationally. Fiona also studied at one of America's leading Universities

on behavioural change and human psychology and worked with people from the FBI.

We have had Fiona Skene educate and empower our staff on two occasions now,

and we highly recommend her. Fiona is passionate in doing what she can to assist

and to prevent violence in our community. Fiona is generously running this FREE

class so that everyone has the opportunity to have access to this vital information.

THIS IS NOT A MARTIAL ARTS CLASS! Martial arts teach you how to fight. Self Defence

teaches you how to defuse, not escalate. It works on physical, emotional, mental and

linguistic tools that will have the ability to address and change behaviours into some-

thing powerful and positive. powerful.