Industry News

Adelaide Property Update

South Australian Government statistics indicate the Adelaide Metropolitan median house price has finally reached $300,000.

Interestingly, it was in the March quarter, exactly 4 years ago, that the median metropolitan house price broke the $200,000 barrier for the first time.

As a Nation, the weighted average of established house prices of 8 capital cities grew 1.1% for the quarter and 8.6% for the year.

Perth recorded an outstanding annual growth of 32.1%, Darwin 15%, Hobart 10.5% and Brisbane 10.2% over the year. Australian Property Monitors in conjunction with the Reserve Bank Australia expect Adelaide to be one of the “Stand Out” capital cities over the next 12 months, with forecast growth of 10%.

Investor interest in the residential market displayed signs of improvement in the March quarter with 27.4% of new mortgages issued to existing property owners.

On a seasonally adjusted basis, National Housing approvals fell 2.2% for the quarter but approvals for the other dwelling such as units and apartments, increased by 2.6%.

The Mining and Defence sectors continue to flourish in our State creating employment and business opportunities.

Short to medium term predictions suggests demand for housing stock in South Australia should remain strong. Article provided by Kel Spence, Stanley Thompson Valuers.

If you are interested in property investment here or interstate, please don’t hesitate to contact me.

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Product News

New Product Alert! - Equity Finance Loans

A new product has hit the market that is receiving lots of press and it’s called an Equity Finance Mortgage (EFM). Whilst not for everyone, the EFM provides an avenue for struggling borrowers to reduce their mortgage repayments and for buyers to purchase a more expensive property than they may otherwise be able to afford.

This is how it works. An EFM works in conjunction with a traditional home loan. You buy a house for $500,000. 75% (or $375,000) of the purchase price is provided by way of a traditional mortgage, 5% ($25,000) by way of client deposit and the other 20% ($100,000) by way of an EFM.

If refinancing and your house is worth $500,000 up to $100,000 can be provided by way of EFM. If your existing mortgage was $400,000 you could use the $100,000 EFM to reduce your interest paying mortgage to $300,000 and therefore reduce your monthly interest bill.

In either case no interest is charged on the EFM loan and you don’t have to make any repayments throughout the term of the EFM loan. However, when you sell the property or repay the EFM, you repay the EFM plus up to 40% of any increase in the value of the property.

There is much more to know about this product including what happens if the property value falls or what if you require additional borrowings in the future?

If you are interested in finding out more, email or phone me as listed above and I’d be pleased to explain the EFM in more detail. If you keep adequate tax records to substantiate your income and expenses all will be Ok.

Cars, Trucks, Boats, Equipment... We Can Help!

Mortgage Force has recently completed adding several lenders to our panel of equipment finance lenders. This means that we are now able to provide finance to assist you and your business with finance for any equipment purchases, such as trucks, tractors, farm equipment and or course, cars.

If you are interested in leasing or hire purchasing a vehicle for business purposes, we now have dedicated specialists that can offer very competitive products and will provide you with a quick, professional service.

Contact me today to discuss any requirements that you may have.

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