The age-old question; rent or buy?

The Sunshine Coast Daily 19th April 2013.

THE great Australian debate: to rent or buy?

Lower interest rates, easing prices and improved affordability are all positive signs for Australians considering purchasing property. In fact, these aspects can often be the tipping point for previously content tenants to consider choosing home-ownership over paying rent.

Mortgage Choice investigated the rent versus buy equation and offers some helpful guidance to anyone considering their options in this regard.

"With changes to government incentives for first homebuyers and weaker-than-expected consumer confidence around personal finances, it is not surprising that many renters have recently closed the door on the idea of home-ownership,'' Mortgage Choice franchise owner on the Sunshine Coast, Linda Ireland said.

"However, those who are dedicated to the cause often find it is within reach, sooner rather than later.

"Making your first property purchase requires careful consideration of a range of aspects and detailed planning before you even commence the hunt, let alone think about applying for a home loan. Tenants who know their financial limitations and options are more likely to confidently leave the rental roundabout.

"Recent Mortgage Choice research shows that, for houses in most capital cities, the weekly repayments on an average home loan could be less than or only slightly more than the median weekly asking rent.

"For example, in the December quarter for a house in Brisbane the median weekly rent was $390 per week. Brisbane's first home buyers on the other hand paid only $375 per week on a 30-year average loan of $274,100, at a basic variable interest rate of 5.9%.

"Of course, home-ownership costs such as land tax, strata fees, council rates, water consumption, insurances and maintenance need to be factored into the equation, but the small difference between rent and loan repayments within some areas is encouraging for many potential buyers.

"It is important to keep in mind that at present, there is higher than average property listings and lower than average competition between buyers. But it is a cycle, and as positive consumer sentiment grows so too will property demand, making it a good time now to do your sums.

"First homebuyers should explore their property and finance options carefully before making a quick decision to buy.

"If the idea of paying your own home loan instead of your landlord's is too good to refuse, then put a property purchase plan into action, get professional home loan help and make 2013 your year."

Coast makes property hotspot list after years of 'stinking

Sunshine Coast Daily 18th April 2013 Anthony Brand.

A PROMINENT property expert, who believes the Sunshine Coast market has "stunk for years", has added it to his highly regarded Hotspotting List.

Real estate journalist, author and researcher Terry Ryder, who lives in the Coast Hinterland, said he believed the Coast market's time had come.

Mr Ryder outlined his optimistic outlook for the Coast and surrounding regions in his weekly column.

"I've been a long-time resident of the Coast region, but have never been able to include it in a top-10 hotspots list because, frankly, the market has stunk for years," he wrote.

"The local tourism economy was struggling, there was over-supply and affordability was poor.

"I've been watching the Coast market, awaiting the optimum time for investors to consider this location. I think that time has arrived."

Mr Ryder highlighted a strengthening tourism industry, a drop in property prices and an increase in FIFO mine workers moving to the Coast as the catalysts for a market revival.

Identifying future employment opportunities in the health and education sectors, Mr Ryder contributed expected growth to major infrastructure such as the university and private hospitals.

UDIA Sunshine Coast branch president Andrew Stevens echoed Mr Ryder's sentiments. He said he had seen the expected growth coming for more than a year.

"As well as the health hub, there's the Big Top redevelopment which will reinvigorate the CBD and the Sippy Downs super clinic which all add to the momentum we are experiencing," he said.

Credit Card limits - Limit your borrowing power

Sunshine Coast Daily 13th April 2013.

CREDIT card holders routinely receive applications and offers to increase the limit on their cards, however, few realise the impact an increased credit limit has on a home loan application.

Loan Market mortgage broker Carol King said that in the past year she had seen many home loan applications adversely affected by clients who have accepted a seemingly innocent credit card limit increase.

"Automatic credit card increases are common these days but these increases can have a big impact on your borrowing power, especially when you don't use the limit you have been granted," Mrs King said.

A limit of $10,000 on a credit card can reduce your borrowing limit by up to $30,000 and with a reduced borrowing power many buyers can find it more difficult to purchase their preferred property, even with a healthy income and significant savings.

"When you're going through a home loan application, lenders are going to look closely at your savings and income, but they also place a huge emphasis on the amount of credit you have available, which could potentially affect your ability to make future repayments," she said.

Mrs King offered the following tips for those considering increasing their credit card limit and potentially purchasing a property:

Reduce your credit card limit to the maximum limit you regularly use.

If you ever need to increase the limit for an "emergency" a quick call to most lenders will increase your limit as long as you have good conduct on that card.

If you can, limit your credit cards to one or two at most. Having several credit cards will impact your credit file and will also not score well with lenders. Become an additional card holder with your partner if you can as this will save you on fees but also the credit limit will only impact the borrowing capacity of the primary holder and not the secondary.