What is the role of Reserve Bank?

This week, I am going to talk about Reserve Bank and why Reserve Bank increase its interest rate. We pay more interest.

In summary, the Reserve Bank of Australia's (RBA) main responsibility is monetary policy, the Governor and the Treasurer agreed that the appropriate target for monetary policy is to achieve an inflation rate of 2-3 per cent on average, over the cycle, a rate sufficiently low that it does not materially distort economic decisions in the community.  Continue reading »

Wow, We are ready to retire, what can we do !!

One of the ways to enjoy the rest of your life with your loved ones is selling your house and downsizing so that you can travel and do whatever you like.

How many of you understand the potential social security impact?

Your house is your biggest asset, now you have paid off the mortgage and you are looking forward to retirement. However, you cannot sell five bricks here and sell another five there to live in the lifestyle you deserve.  Continue reading »

What happens when the renovation cost is way more than budgeted?

You bought this slightly run down property and you thought you could replace the kitchen, update the bathroom, a coat of paint, and new carpet will do the job. Your plan was to complete everything in a month and sell it for a profit. You had a budget which was enough to cover the cost.

When you started the work you found water leak to the timber floor and your worst fear, yes, termites found and those little ants eating your asset.  Continue reading »

Bad tenants can destory your investment property value and cause major headaches, regular inspection is the key !

We have all heard the phase 'tenant from hell' and most of you say it doesn't happen to me. It is true if you know what are you doing?

The big question is, do you or do you not......

I have a friend and her long term tenant left and moved out. She went back and inspected the property after the tenant had left. The property is managed by an agent, but guess what, not all agents do what they are supposed to do - 'Regular Inspections'  Continue reading »

What happens if the man can no longer afford the castle?

I wrote this article after I watched a TV interview and it mentioned a house is a man's castle. It was interesting to watch the interview because it sums up how important the Australian dream to own their own home.

People need to understand that a mortgage loan is normally 30 years, therefore, it is very likely you have things change or happen within the 30 years term.  Continue reading »