All About Realestate

By Lawrence White

The figures prove the point. Those of you who had the vision to invest in advertising French properties over the last couple of decades would have surely got a rich return on your investment since real estate as an asset class has done particularly well in a country like France.

The question now is whether this good run will continue in the years to come and should you be investing even at this point?
The answer is not a simple one. Nobody will or can now advise you to invest just about anywhere in France since some dynamics have changed. Certain regions have seen a rise in prices while some have seen a decline that is expected to continue. The appreciation over the last couple of years has been a tempered one and if you are expecting a 20% return in the next couple of years, then you should pare your target and be more realistic.

Unless you have a lot of money to shell out and enter into leaseback deals or buy expensive properties by the coastline or in the Alps, where the returns could be higher both by way of rental income as well as by way of capital appreciation, you should weigh your options when it comes to putting your money in other regions.

Options include investments in renovation of houses and holiday homes that have come up. While it would appear that renovating an existing property is better than buying a new one, recent changes in regulations pertaining to builders, developers, electricians and other skilled professionals have made it difficult for correctly estimating the cost that would have to be incurred for such projects. Two decades back, you could get labour a lot cheaper and get into such renovation projects knowing that your upper limit by way of expenses may not be crossed. Today, that is not the case and once you commit to a project without having an accurate fix on the costs or by getting to know the situation on the ground, you could be heading for trouble.

The next option is holiday homes. As mentioned, those by the popular coastline are pretty expensive and may not be within reach of the common man. The trick is to look for places that have the potential to certainly appreciate over time and be patient with the investment. France will continue to be a popular tourist destination and therefore the potential to earn rental income as well as gain from appreciation of the property over time certainly exists. It is only a question of looking for cheaper deals in areas where tourism potential has not diminished and will sustain or even become better as the years roll by.

Alternately, the rural areas of France are becoming popular and you may want to look at certain options there. One thing is certain though. Advertising French properties continue to be popular and as long as you have the patience to wait for some years, they will prove to be great investments.

About The Author

AccessU2 advertise and promote a vast range of French properties for sale and rent and also offer arrangements for mortgages & finance in France. To view the full range of services available from AccessU2, visit http://www.accessu2.com

By Howard Ogollegos

The property market in the UK has arguably been the sector worst affected by the recession of the last three years. With lenders still acting with caution and their tighter grip on lending criteria, property prices are at their lowest recorded levels. This has also, by no means, been helped by the extremely low base rate of 0.5 per cent, which certainly shows no signs of shifting any time soon. According to the 2010 Property Price Index released by the Land Registry, the lowest dip in property prices occurred in October last year. This is undoubtedly due to the increase in consumers looking to sell up at that time before the Christmas period. This clearly had an adverse affect on the supply/demand ratio. November showed little signs of improvement either as property sellers looked particular desperate to offload by offering their property at an average 3.2 per cent lower price.

There are currently no signs that the property market will ever regain its pre recession strength, especially with house prices still fluctuating. Many economists highlight that these prices have actually been slowly but surely increasing from their ultimate lowest back in 2007. However, any hope is further quashed by a recent report by Nationwide Building Society which highlighted that any signs of growth in house prices were substantially weaker in the second half of last year. This definitely does not bode well for the property market going into 2011. By looking at some of the biggest property price increases in the past five years (believe it or not, there have been some!) we can look to highlight any trends that could mark the pathway for the property market throughout the rest of 2011.

The first, most obvious trend to notice, which I am sure will not come as a surprise to you, is that the largest property price increases between October 2009 and October 2010 was in the Capital city, London. And this was not just in central London, every single borough of the totalling 33 saw property rises, the highest being seen in Redbridge where the average increase was +10.2 percent. As a region, The Capital saw prices rise from an average 316,943 GBP in October 2009 to 341,105 GBP in the second half of 2010. When comparing these with the top property tycoons that have the biggest presence in London, it is clear that underpinning this growth is international buyers looking to make secure investments in properties outside of the crumbling Eurozone.

Property website LSL Property Service/Acadametrics figures showed November 2010 saw the highest average price yet for London at 383,243 GBP, the fourth month in a row a peak was reached in 2010. While it might seem out of control to most people, the websites statistics also show the rate of growth is decreasing in London also, in line with the rest of the British property market.

With transport links into Central London continuing to improve, with Underground upgrades and Crossrail under construction, it actually slows house price growth instead of improving it. Better commuting means people are looking to live further and further outside of London in the suburbs for a bit of the quiet life away from the never ending buzz of the city, these properties are more popular with young and starter families.

As we can expect, the 2010 report by the Land Registry showed a different story in the North of England than the south. Collectively, the North West saw a decrease in the average property price from 118.838 GBP in October 2009 to 117,868 GBP. While this is not a life shattering change, it is still not quite the news any of us were hoping for. However, silver linings shone throughout Wales though as Merthyr Tydfil was recognised as having the biggest price increase between October 2009 and October 2010 of 10.2 per cent, that is on the same calibre as the state of the property market in London. In the rest of England, the best monthly growth was seen in Darlington with a pitiful average price increase of just 3.1 per cent.

While the North and South have always been divided when it comes to culture, accents and banter, this latest contributor of the property market divide marks more interesting debates. Especially when more recent figures suggest that the north and south property markets are, in actual fact, parallel with one another. For example, the driver of the UK property market as a whole is in fact Durham according to the Land Registry. Country Durham saw an increase in property sales by a massive 11.6 per cent and Northumberland saw an average increase in sales by 25.9 per cent in 2010 alone. You could not get much more northern could you really?

Returning back to property price increases though, and considering the UK as a whole, the largest rise in the average property price increase was seen in October 2007. However, these price increases are largely determined by the relative demand for different types of property. For example, the highest demand over the last 12 months was seen in detached properties; hence they saw price increases of around 4.8 percent. Next came semi detached properties which saw a rise of 3.3 percent and lastly terraced houses which saw an average property price increase of 2.5 percent.

So what does this mean for the property market in 2011?
While a few areas have clearly seen some slight decreases in property prices, the majority of the statistics released by the Land Registry point towards a slow but sure improvement in the UK property market as a whole. This could potential mean a year of growth and further improvement in 2011, fingers crossed of course! Economists at the Centre for Economics and Business Research (CEBR) have implied that these price increases will continue; they have published predictions that London will see a growth of 1.2 percent and the rest of the UK will see a rise of around 0.8 percent. So all in all, there is definitely still hope!

For budding property magnates and investors out there, going straight for the obvious market in London might not be the best course of action. The areas bordering both sides of the M25, as well as other solid commuter areas in the suburbs of major cities seem to be the best bet for growth, expansion and improvement in 2011.

About The Author

This article was written by financial expert Howard O”Gollegos. Howard works at http://www.JustCommercialMortgages.com who specialise in finding the best commercial mortgage rates for all its customers.

By Kelly Fox

Not all can manage to buy a house or any other property, big or even small without taking support from any of the financial or mortgage company or any bank. Mortgage is a handy tool when one thinks to buy a particular property. The maximum benefit to take the support from the mortgage company is that one gets a complete liberty to purchase and stay in the house even without paying the exact cost of the particular property without shelling a huge amount at once. The debts can be paid gradually according to the installments or the mortgage rates which are fixed according to the deal.

Many people who go in for the mortgage sometimes also need a down payment to reach the target or the price of the property he/she has to buy. In some cases the amount of the down payment costs about 20%, then this is considered as a conventional mortgage. And in some cases the amount of the down payment is less than 20%, of the property cost price and then is considered as a high ratio mortgage. There are many facilities and also varieties of mortgage types and each has its own benefit and value.

The best mortgage rates are planned meticulously so that the customers can get the highest benefit from their procedures. From many months I was planning to buy a shop in one of the leading complexes of the town, but was worried about the high cost of the shop. The shop mall was situated in a flourishing area and I think that was the cause, why the cost of the shop more that the other shops.

But if one attempts to buy a property, then he/she can afford to spend once but not again and again and especially if it is a business premises, then the property has to be bought with utter wisdom. I took the advice of my uncle because he was an owner of a vast business empire and I knew that he had taken financial assistance from the mortgage rates Mississauga. He knew all their procedures very well.

After a long discussion, I and my uncle decided to take the financial assistance from one of the leading mortgage companies for further details. Finally we decided to go in for the mortgage rates Toronto because we found the terms and conditions suitable and the conveniences to repay the debts was given in the efficient mortgage rates. We got the home mortgage rates.

About The Author

Kelly is an expert in the field. For more information on Mortgage Rates and Mortgage Rates Canada Please visit: http://www.ratesupermarket.ca/

By Kelly Fox

Not all can manage to buy a house or any other property, big or even small without taking support from any of the financial or mortgage company or any bank. Mortgage is a handy tool when one thinks to buy a particular property. The maximum benefit to take the support from the mortgage company is that one gets a complete liberty to purchase and stay in the house even without paying the exact cost of the particular property without shelling a huge amount at once. The debts can be paid gradually according to the installments or the mortgage rates which are fixed according to the deal.

Many people who go in for the mortgage sometimes also need a down payment to reach the target or the price of the property he/she has to buy. In some cases the amount of the down payment costs about 20%, then this is considered as a conventional mortgage. And in some cases the amount of the down payment is less than 20%, of the property cost price and then is considered as a high ratio mortgage. There are many facilities and also varieties of mortgage types and each has its own benefit and value.

The best mortgage rates are planned meticulously so that the customers can get the highest benefit from their procedures. From many months I was planning to buy a shop in one of the leading complexes of the town, but was worried about the high cost of the shop. The shop mall was situated in a flourishing area and I think that was the cause, why the cost of the shop more that the other shops.

But if one attempts to buy a property, then he/she can afford to spend once but not again and again and especially if it is a business premises, then the property has to be bought with utter wisdom. I took the advice of my uncle because he was an owner of a vast business empire and I knew that he had taken financial assistance from the mortgage rates Mississauga. He knew all their procedures very well.

After a long discussion, I and my uncle decided to take the financial assistance from one of the leading mortgage companies for further details. Finally we decided to go in for the mortgage rates Toronto because we found the terms and conditions suitable and the conveniences to repay the debts was given in the efficient mortgage rates. We got the home mortgage rates.

About The Author

Kelly is an expert in the field. For more information on Mortgage Rates and Mortgage Rates Canada Please visit: http://www.ratesupermarket.ca/

By David Scheuring

Historically, investing in real estate and stocks has been two of the more popular choices in the marketplace. Both investment vehicles can help you achieve your investment goals. In either case you should analyze the inherent risks versus the potential reward of each investment to determine which is appropriate for your portfolio. Although stock investing tends to garner the bulk of the media attention, you may find that investing in real estate as a Private Lender actually provides better return with less risk.

Here are the three salient reasons why Private Lending should be considered as a viable investment option.

1. A Secured Asset
Real estate is a physical asset unlike shares of a publically traded company. You can see and feel a property and this tangibility makes for peace of mind as a Private Lender. Real estate has intrinsic value because people use property for a specific purpose (i.e. a home to live). It is this inherent value that causes real estate to retain its value. Rarely will a property be considered worthless, although this is not necessarily the case with stocks (i.e. Enron/Lehman Brothers).
2. A Necessity
Owning real property is a necessity. People need a place to live and locations to operate their businesses. This need is ongoing, in every town and city in the United States regardless of economic highs or lows.
3. Allows for More Control

You generally have more control investing in real estate as a Private Lender as opposed to directly investing in the stock market. You are able to approve or disapprove any deal that is presented to you. Always require an investing professional to show you their plan for generating revenue with a particular property. Make sure they detail, and you understand and approve, their buying, repairing, and exit strategies for each property. Look at the numbers, if you don”t like what you see – walk away.

This is not typical with the stock market. An individual investor has no control over how a company operates; therefore you will never be able to directly affect the profitability of the company and maximize the return on your investment.

Overall, investing in stocks or private mortgages can be profitable when proper due diligence is applied. As a Private Lender, it is critical that you evaluate the After Repaired Value (ARV) of the properties in which you are thinking of investing and rely on your real estate professional for current data. Compare the risk versus reward profile on this type of investment with that of the markets in general and you may conclude that Private Lending should be part of your portfolio.

About The Author

David Scheuring is President of Pembroke Property Solutions, Inc., a professional real estate investment organization. More information is available at www.privatemortgagenow.com. Please send any comments or requests for more information to: info@privatemortgagesnow.com

By Jack Landry

Buying a home is one process that takes a great deal of preparation, mostly financially. There are a number of ways that one can prepare themselves for this exciting time and be sure that they are full capable to make this huge commitment.

Purchasing a home is a completely different avenue then renting an apartment or condominium. It involves many steps and processes, and unfortunately not all individuals have the ability to do it.

The process involved depends on the area where you live and the real estate laws that are enacted there. However, there is still a great deal of standard steps that every person who wants to buy their own house must go through.

You will feel more prepared and ready for this process once you understand the steps and commitments that are involved. The main thing that you must do before you make any decisions or take action is checking on your finances.

If you do not have the financial capability to go through with the home-buying process, then there really is no point in beginning it and trying to receive a loan. This may sound like common sense, but there are plenty of people who want to buy their own place so badly that they do not pay attention to how much funding it will really take.

Not only do you need to have enough to make a monthly mortgage payment, you will also have to pay a down payment on the actual home, as well as paying for other expenses here and there when moving and purchasing. Probably the best advice that one could give is do not let your head get under water, meaning if you are unsure about whether or not you will be able to pay for it, do not risk it.

Those that feel ready to take on this project will want to receive an estimate, otherwise known as a pre-approval, from a mortgage company. According to your credit, debt, income, and some other factors, a lender will be able to tell you the lowest or highest home price that you will be able to afford while still staying afloat.

Make sure to take this information into great consideration and not go above your means. Having this documentation can be helpful when you are applying for a place; those that are already pre-approved are more likely to be accepted than those who have not submitted any documentation.

You must also decide which aspects of a residence are the most important to you. Hopefully, if you are lucky, there will be a fair amount of available places in your price range.

If you are unsure about what you want and need from a home, it will be difficult to make decisions regarding which one is the best for you. Narrowing down your wants to a few specific aspects and then choosing residences that contain those will definitely make the process much easier.

Choosing whether or not your prefer to buy and sell with a real estate agent will also be a big step in the overall progression of obtaining your dream place. There are many who wish to sell their home or find a new one without the help of an agent.

Though this is perfectly acceptable, you may miss out on potential houses that you were unable to find yourself if you choose not to utilize the help of a professional. Some sellers only prefer to get referrals from agents, so there could be a fantastic choice that would be perfect for you but you are unable to find it or look at it.

Working with a real estate agent does have both benefits and drawbacks. They do usually receive a commission on the sale if you decide to purchase, meaning that a small percentage of the price of the house will have to be paid to them to compensate them for their work.

However, working with someone who is experienced and has access to a number of different residences does usually make everything easier, because they are the one that is responsible for putting in the work and helping you to do a large portion of the paperwork.

No matter what you decide, these steps will help you prepare to find the perfect place that you have been waiting and hoping for. Just make sure that you are financially capable and willing to take on the commitment of a years-long mortgage before you choose to buy.

About The Author

Jack R. Landry has worked in real estate since 1992 as an expert on home buying and construction. He has written hundreds of articles on real estate and recommends (http://www.manufacturedhomesutah.com) for new construction.

By Jack Landry

At one point or another, most people have examined some of the most expensive homes in the world and compared them to their dream home or the home they have. These homes are quite impressive, even though they are out of the budgets of most of the population.

The most expensive house in America is located in Bridgehampton, New York. Its current price is about 75 million dollars.

The location of this home is in the middle of beautiful, lush, and green farm land. Today, it is surrounded by other resort-like homes.

This home is called the Three Ponds due to the three ponds of stocked fish that are found on the property. The house itself is about 25,000 square feet in space and every part of it is very high quality.

The property features a 75 foot long swimming pool, a United States Golf Association rated golf course, grass tennis court, orangery, and fourteen gardens. A few of these gardens include a crabapple allee, vegetable garden, lily walk, rose garden, hydrangea garden and butterfly garden.

This home is situated on 60 acres of land. The second most expensive house in America is only five million dollars less and it is priced at 70 million dollars.

This home is also located in New York, New York. It is a triplex penthouse and also serves as a hotel.

This multimillion dollar home features a grand original Pierre ballroom with 23 foot high ceilings. From this ballroom, you can get a 360 degree view of New York City due to the windows that surround the room.

Masterpiece black marble staircases lead up to this ball room. Twenty foot French windows are also a noticeable feature of this home.

It also has double reception rooms and paneled library. Due to the expensive price of this home, the property was split into two parts.

This will allow potential buyers to purchase it as a whole, or only a part of it depending on their budget. One piece of property is worth 11 million dollars and the other is worth 59 million dollars.

The third most expensive home in America is worth 65 million dollars and it is located in Malibu California. Malibu is a common residence of many movie stars and moguls.

As a result, this is one of the few homes with a significant amount of property that comes with it. The home itself sits on a bluff which has a wonderful view and it is surrounded by seven acres of land.

This house is quite extravagant as well. It contains seven bedrooms, 11 bathrooms, wonderful ocean views, a riding ring, gym, swimming pool, tennis court, guardhouse, and a private stretch of beach.

The fourth most expensive home in America is worth 60 million dollars and it is located in the snowy Incline Village in Nevada. It is located on the very popular vacation location of Lake Tahoe.

This home is dubbed with the beautiful name of Sierra Star due to its location in the mountains. It is a very modern home with the beautiful wood and stone cabin exterior.

There are four acres of property that come with it. The home itself is 11,000 square feet in space, but it is accompanies by two guest homes as well.

The three buildings provide a total of 18 bedrooms. Due to local skiing and snowboarding opportunities, this home is considered to be a sporting retreat.

The next most expensive home in America is priced at 53 million dollars and it is located in Bel-Air California. In addition to the home, you are buying a piece of the most expensive neighborhoods in California if you purchase this home.

This home features the Mediterranean style and it covers over 34,000 square feet. It features nine bedrooms and 20 bathrooms on its four floors.

The most notable indoor feature of this house is the nine foot tall French crystal chandelier that is located in the entry way. The next most notable indoor feature of this home is the domed ceiling in the formal living room.

This domed ceiling is 20 feet tall and it is covered in painting of sky scenes which look very different depending on how you choose to light it up. In addition, this expensive villa has a bowling alley, game room, screen room, racquetball court, fitness room, and a sauna.

As with all expensive homes, this home also features several gardens and orchards. It is very interesting to see what expensive homes offer the rich on occasion.

About The Author

Jack R. Landry has worked in real estate since 1992 as an expert on home buying and construction. He has written hundreds of articles on real estate and recommends (http://www.manufacturedhomesutah.com) for new construction.

By Art Gib

Whether you are considering property management in Salem Oregon or any other location, you should consider the benefits that come with a property management company. A management company can make life easier on the property owner. As a property owner it can be beneficial to free up time from the day to day tasks associated with managing a property or various properties.

A property management company will become the main contact for the residents. They will handle the day to day concerns, maintenance needs, and emergency that may arise. These can include issues concerning rent, plumbing issues, snow removal, or concerns regarding HOA costs. These are just some of the possible concerns that a management company can handle. As the point of contact you can be relived of the stress involved in resolving issues with the tenants.

Many management companies also offer accounting services and rent collection. They will take responsibility for assuring that rent is paid on time and the proper action is taken if rent is not provided. They can also handle deposits and other possible finances related to the property and tenants.

Handling maintenance issues can be demanding and stressful. Management companies can make sure that issues with plumbing, snow removal, lawn care and other concerns are resolved quickly and professionally.

Having a representative on-site is a valuable asset to many property owners. Apartments benefit from having personal at the apartment complex. This can assist in filling vacancies and handling tenant issues quickly and responsibly. This can allow your properties to run more efficiently and successfully. Assuring that vacant apartments or properties are filled quickly is extremely important to any property owner. Many property management services specialize in filling vacancies fast and applying best practices for renters.

Ultimately, as the owner you will want to know how your properties are doing. In depth reporting can be provided by a property management company. This can help an owner identify possible concerns and also verify the progress of the management company and the satisfactions of the tenants. There are many benefits that a management company can offer. Contact a few in your area and see if they offer the services that you need.

About The Author

Centurion Real Estate Management offers property management in Salem, Oregon. They specialize in a wide variety of real estate management services in the Willamette Valley area. (http://www.c-rem.com)

By Emma O”Garrity

With the private sector cutting back on recruiting new bodies and the public sector remaining blissfully unaware to the beating it is about to receive, it is difficult to know where to turn. The current economic climate has left no one unaffected. Although comfort can perhaps be taken from the recently released job loss predictions for 2011 which suggest that losses stand at 400,000, as we start the New Year, which is down a huge 90,000.

Even though the country are warned against a change in career path due to a lack of openings, there are many who have absolutely no other option. Enforcements such as wage freezes and jobseeker and benefits cuts, as introduced by the coalition, are forcing individuals to look for other ways to secure a stable income. The British Economy is undoubtedly in a worse than dire situation which has caused a lack of available credit and huge amounts of debt. Among Britain, the US and Europe, there is barely a country left that does not either owe someone else money or who are owed capital themselves; it is a vicious cycle that all are struggling to break free from.

However, after speaking with Jonathan Davis, a wealth management expert and regular media advisor, our minds have been eased slightly. He emphasised that sever wounds such as these take a long time to recover so an element of patience is essential, “The big picture is that for 30 years, we have had a growing debt problem, not just in the UK but right across the West. That bubbled in 2006-2007, and now we are experiencing the hangover of the debt party. I refer you to the 1930s, and the depression based upon de-leveraging effects following, by then, the biggest debt bubble in history during the 1920s. This time it is from the biggest debt bubble of all time”.

“The banks are, technically, insolvent themselves. You would be hard pushed to find a bank or building society in the UK that is solvent, when real assets are taken into account. It is all well and good to have property, but if that lies vacant, and there is a loan outstanding, then it is a loss. Look around in every town, in every city. Look up, and you see To Let everywhere. 10 per cent, or at least 10 per cent of shops are lying empty, then you have got warehouse, office and manufacturing facilities. “In other words, you have got an enormous swathe of bad debt coming down the line. That is one of the reasons banks are reducing lending, because they know they will be cutting red ink right across the balance sheet in due course. On top of that they also have the wider G20 issue, of what is called Basel 3, which is a change in the regulations of international banking,” said Davis.

As we call for tighter banking regulations, it still seems as though the average British Citizen is the one bearing the brunt of the current state of affairs. Amidst the bailout controversies lays the Basel 3 agreement, which emerged from the G20, which calls for banks to have a higher level of constant cash reserves. As a result, the banks are limiting what they lend, a level that is unlikely to return to its pre-recession levels for quite some time. Davis reiterates this, “Basel 3 is to prevent a future bubble emerging, followed by a crash. We are still in one crash right now, and it will continue for years”.

So it does not look like we are going to see much change in how much we can borrow, or at least how easy it is to find a loan, anytime soon. But does this mean the UK is set for a dramatic rise in high-interest or, worse still, unscrupulous loans? “People are already massively in debt. The amount of debt in society is more than there ever has been. I read surveys from big financial institutions that say if the cost of living goes up 100 GBP per month, people could not afford to live, that is how bad it is,” said Davis.

He continues, “So, I do not believe, in fact, I cannot see that people will be getting even more into debt, simply because society is already maxed out.” Indeed, banks are now off-putting consumers from obtaining more debt but Davis emphasises that, “it is all they can do, it is not because they want to.”

His prediction is that “people will not be taking on more plastic credit, they will not be increasing consumer spending, they will not be taking on mortgages, because they simply cannot.” Returning to our original point, the issue is that the banks just do not have the money any more. According to recent statistics the number of mortgages obtained is at its lowest level for 10 years.

The biggest worry when it comes to a lack in lending by the banks is the increased potential of an emergence of unscrupulous loans that can scam the vulnerable. Davis warns that “once you start dealing with those types of businesses you are on a hiding to nothing, they will just take your house off you for the sake of a few thousand pounds”. Unfortunately, such companies can, on the face of it, have attractive offers, but they will take no prisoners when it comes to repayment. However, MP Stella Creasy is currently on a mission to place restrictions on these so-called legal loan sharks.

It will be an imperfect and imprecise art trying to predict the future, but the reasoning behind Davis predictions is grounded in common sense, the gravy train was going to come off the rails at some point with hindsight. It is a culture shock, one we have no choice but to get use to, but the long term benefits on peoples attitudes to spending and budgeting can only be a good thing. Is there credit to be had after the crunch then? No, well yes, there is, but the way to success and better finances is by reducing debt and overspending then plugging the gap with credit lines to keep level. If you are stuck, just man up, admit you have a problem and get much needed help.

About The Author

Emma writes for http://justclearmydebts.com/free-debt-advice/, one of the UK”s top websites offering free debt advice, IVA information, and resources to help with credit card debt.

By Michael Leach

There are many different repayment options available but you should sit down with a lending manager to work out what is best for you and your situation. The repayment options that are available include:

Principal and Interest- repayments are made up of your principal (the amount you borrowed) and your interest.

Interest only- repayments are made on the interest, with the principal balance unchanged.

Repayment cycles are usually monthly, fortnightly or weekly and can usually be matched your pay cycles or cash flow. If you are paid weekly or fortnightly, making loan repayments fortnightly or weekly repayments may mean you can link your loan repayments with your salary cycle. It also means that over the course of a year you will make extra repayments compared to paying monthly, which will help you pay your loan off sooner.

Extra repayments – If possible is good to try and make extra repayments because it gives you the comfort of knowing your loan is in advance, that you are saving interest, and you can get it back through redraw if you home loan allows this option. Even if it is only a small amount on top of your minimum repayment, it can reduce the interest you pay off your loan over time. If you make additional repayments on your loan, you can apply to redraw (withdraw these funds) if your home loan allows this.

Lump sum payments such as using your tax return refund or bonus payments, can also help reduce the interest you pay in the long term. Making lump sum payments are a great way to get your loan down – with the additional repayments on your loan, you can apply to redraw (withdraw these funds) if your home loan allows this.

Repayment holidays- Some loans may offer you the option of a repayment holiday. This enables you to take a break from your loan repayments if your personal circumstances change. In most cases, the loan would need to be in advance before a repayment holiday can be taken.

For more information visit newcastlepermanent.com.au or drop into any Newcastle Permanent branch and pick up our Guide to home loans brochure.

Any advice contained in this material has been prepared without taking into account your objectives, financial situation or needs. Because of that, before acting on any advice, you should consider the appropriateness of the advice having regard to your circumstances.

About The Author

Michael Leach is the Head of Marketing at Newcastle Permanent Building Society Limited (http://www.newcastlepermanent.com.au) ABN 96 087 651 992.

Newcastle Permanent Building Society is a provider of home loans and mortgages.