MILLION DOLLAR SUBURBS ARE ON THE RISE
- Written by Melanie Toye, March 16, 2014
The market is showing signs of growth with the recent weekend's market result. In Victoria alone, there were 809 auctions, with 594 selling and 215 being passed in. Reported from the Real Estate Institute of Victoria (REIV).
"After this week's auctions, around 3,500 homes will have sold under the hammer so far this year. We have had a big rise in the number of homes being sold by auction this year which continued on from the strength in the second half of last year," said Enzo Raimondo, CEO of REIV.
Compared to last year's total transactions, this year is tracking lower with a decrease in private sales. The premium end of the market is showing strong signs. The top five houses auctioned were in:
- Camberwell for more than $3 million,
- East Melbourne for $2.4 million, and
- $2.3 million in Malvern, Brighton East and Templestower Lower.
The top five flats/apartments auctioned in Victoria were set at Carlton for $3.4 million, Hawthorn $2.7 million, Glen Iris $1.5 million, Toorak $1.45 million and Richmond for $1.3 million.
With the continued growth of these million dollar suburbs and properties, it shoes Victoria is going strong with the economy and the State is being well invested in, drawing wealth into Victoria.
Another great decision by the Reserve Bank of Australia Board that all Australian home owners will be cheering about. On 2 September, the Board decided to leave the cash rate unchanged at 2.5 per cent.
This gives mortgage owners a chance to continue to add additional money into their mortgage without the funds being chewed up by high interest charges.
And because of this, mortgages will be paid out much quicker. In some cases, if a mortgage owner adds an additional $200 a week into their mortgage. They might be able to chop five years, off their total loan amount. Can you imagine not paying a mortgage repayment anymore? Well, if you pay extra in your mortgage while taking advantage of the low interest rates, you could be living without a mortgage much sooner than you except.
The things you could do with that extra money. Maybe even put it towards a holiday home, or investment property, or building your super, or just taking a wonderful holiday somewhere.
Sooner or later, interest rates will climb again. There is no doubt about that. So taking full advantage of the low interest rates now, is in your favour.
Pending on who your mortgage is with, you might be able to put the additional payments into a redraw facility, in case down the track you need to use it for an emergency.
Some mortgage owners put their additional funds into a savings account to earn interest. But say $5,000 in savings a year, you earn $100 in interest and then taxed from the interest you earned. Would it be more for your end pocket if your savings were put against your mortgage?
- Million dollar suburbs are on the rise - March 16, 2014
- Saving initiatives for first home buyers - February 28, 2014
- ANZ put their cards on the table - February 2, 2014
- Fixed-rate mortgages are the trend - January 10, 2014
- Always be diligent with your research - November 8, 2013
- Lowest interest rates ever yet mortgage stres.. - October 26, 2013
- More mortgages lodged in 2013 - October 19, 2013
- Selling and your mortgage - October 11, 2013
- September records show a rise - October 4, 2013
- Reserve rates hit record low - August 11, 2013