As one of the most dramatic years this century draws to a close, your upcoming holiday break is a terrific time to consider your role as a landlord or homeowner and to establish some real estate resolutions for 2021.
Before you ring in the new year with champagne and firecrackers, you will probably take some time to list some goals such as exercising more or growing your savings.
This year take some time to add some property goals to your list of resolutions. If you’re a first home buyer, you might want to increase your savings, while if you already own a property, speak to a finance specialist such as Our Broker about using your existing home equity to purchase an investment.
Whether you’re a landlord or an owner-occupier, refinancing could be a sensible strategy for improving your financial situation in 2021.
Review your current lender’s rate, and if it starts with a 3 or 4, then it’s time to check out the competition with the help of Our Broker. Perhaps you could be saving money by switching between a fixed and variable rate. For example, with Commonwealth Bank, you can negotiate a fixed rate of 1.99% for four years, while the big bank’s variable-rate was 3.85% at the time of writing in early December.
Be mindful there are fees associated with refinancing; however, Our Broker will do this research upfront for you.
Even if you refinance into a low rate loan, it’s easy to fall into the trap of thinking there will always be an extra bit of cash around if needed with interest rates so low.
But the economy changes quickly as we saw with COVID- 19, and at some stage interest rates will rise. Therefore, setting aside some cash for a rainy day is a sensible course of action.
It will also be helpful if you have a clear view of how much you are spending on your property. Start by monitoring and documenting every expense over a month, and then look for savings. This will help you create a budget and identify any expenses you can trim back.
Renovations can substantially add value to your property and build equity.
However, renovating can be an expensive exercise, so start with one room in the house that you want to update. An upgrade might be as simple as buying new furniture for a bedroom or adding a new shower in the bathroom. If your budget extends, perhaps you could tackle a bigger project such as a kitchen upgrade.
If you want to trim the expense involved in a bigger renovation, find some creativity online and even try designing the layout with the help of software such as Planner 5D yourself. Draw a visual plan and then seek quotes from a few tradies.
No matter what your goals are for 2021, make sure you get the best advice and assistance from your local Raine & Horne agent, or a finance specialist from Our Broker on 1800 913 677