Get your Home Revalued

THERE’S quite a lot of discussion about the rising property market, how difficult it is for first home buyers and when it will stop. 

But there really should be more discussion, or at least some, on the major opportunities coming out of these capital gains for home owners. I organised a catch up with a mate of mine and his wife about two years ago. He had full time work, she worked part time, they have two kids and they hadn’t yet purchased a home. After much encouragement they went and saw a mortgage broker , got approved and then started the painstaking task of competing in this hot market. 

They bought about a year ago. Last week they had the house revalued. It had risen $100,000 since they bought it. He marvelled at the amount of time it would have otherwise taken him, likely well over a decade, to save that sort of money. Further, I pointed out to him that due to that increase in value his original loan was now a lower percentage of the value of the home. This means he might be eligible for a lower interest rate from his bank or have better options with another one. This all meant he now has even lower costs per week than when he was renting (nearly $1000 per month!) 

Bridging the gap to purchase is a stretch. Saving the deposit is tough. It might even be tougher now than before. But with current interest rates, it means once that purchase is achieved the servicing is easier than it’s ever been and in many cases less than renting. This week’s tip: See a broker and get your home revalued – that exercise might save you thousands!

This article is from the July 18 issue of The Courier Mail Digital Edition. To subscribe, visit https://www.couriermail.com.au/.

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