Industry Watchdog ASIC Concerns Over Interest Only Loans

A recent review by ASIC found that lenders providing interest-only (IO) mortgages need to lift their standards to meet important consumer protection laws. ASIC found that demand for IO loans had grown by 80% since 2012. Click here to read the full report and findings by ASIC. The purpose of my blog today is to set the record straight in layman terms and to discuss the pros and cons of IO loans. What is an Interest Only loan? As the name suggests, and IO home loan requires you to only pay the interest on the amount you have borrowed. Usually for a pre-determined term (5 years is the most popular). At the end of the IO term, the loan reverts to P&I repayments which means you start to repay

Property Investment Strategy at Glance!

When it comes to property investing, a sound investment strategy is to buy a property that has lost its mojo! A property may have lost its spark because its dated, however with a quality renovation the property could turn into an overnight success for you. I’m sure you’ve heard the saying before, buy the worse property in the best street! Many of our investor clients have been following this strategy for some time and most have made a small fortune from it! Some clients chose to buy, renovate and hold. Whilst others buy to renovate and flip for a profit. I’m a strong advocate of buying to hold as property is a long term proposition (if you want to create massive wealth in a predictable wa

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