27 Sep The September Burning Topic
About the author
Jane Slack-Smith has been named one of the Top 10 Property Experts in Australia by Money Magazine, one of the Top 4 Financial Influencers by Qantas and been awarded the Australia’s Mortgage Broker of the Year twice.
Jane looks into September’s hottest topic in the Your Property Success Community
This months ‘Chicken Little’ award for the most alarming news story goes to…
For there program called ‘Bricks and Slaughter’ which put the case forward a ‘looming housing market crash!’.
This was a clear and outright winner. It sparked heated commentary across the country and had homeowners shaking in there lounge chairs.
So I have 2 thoughts on this. Firstly yes a media hype – even the Researcher (who I have never heard of) says his comments were completely out of context and his 45% price drop was only 1 of 4 options discussed and not the most likely (and it involves a bank collapsing). https://www.propertyobserver.com.au/…/89508-45-percent…
Secondly, the importance of location and having a firm financial footing is paramount. Look where the properties were that were profiled. Location is key, research can’t be overlooked. I talk to people every week as clients of Investors Choice Mortgages when we have our strategy calls. We talk about the long-term plan, the exit strategy, their ability to pay the mortgage and life the life they want and equally importantly where they are going to buy to achieve this. I look at the fact finders and I can tell from where they have bought which property guru/expert they have followed. Buying wrong is the fundamental #1 reason I see things go wrong.
Regardless of the sensationalism of this story, it is true people will get into trouble, mortgage delinquency rates are still below 1% and not rising – as yet – but it is tougher to get money from lenders and IO to P&I loan switches can hurt. It is important to be aware of these issues and minimise your risk against them.