Dear Elk Member,

It is cheaper to own than rent. Achieve the great Australian dream of home (property) ownership. With interest rates at record lows, there has never been a better time to borrow; and if you wait – you may well miss the timing to own; or at a minimum suffer opportunity cost through rising property values – this could result in you being priced out of areas. Further to this, you will have higher hurdles to satisfy: such as increased deposit equirements; having to pay more; having to borrow more – basically you will pay more or miss out, or have to compromise on location.

If you are a renter, that pathway forward that you need to follow is obvious – that’s if you do want to achieve the great Australian dream of home ownership, and to stop paying someone’s else’s mortgage (which cost less than it does to rent that same property).

By the way, those mortgage payments are principal and interest repayments, meaning each payment is building equity via reducing debt.

For the astute investor, what this means is just as obvious.

Contact elk to discuss. Send elk a quick communication and we can go from there.

Email: servicecentre@elkcorp.com.au

Continued good financial management,

Ian Kebblewhite 
elk 

Source data:

Property Pulse, CoreLogic. Analysis suggests servicing a mortgage is now cheaper than paying rent on 36.3% of Australian properties, which is higher than the pre-COVID proportion of 33.9% reported in February last year. 

The increase in areas where it is cheaper to service a mortgage than to pay rent across Australia, when compared with pre-COVID analysis, is a reflection of much lower interest costs on mortgage debt since the onset of COVID-19. Average new mortgage rates for owner occupiers have fallen from 3.21% in February 2020, to 2.40% as of May 2021, according to RBA data. 

General Information and General Advice Disclaimer:

This communication together with all its content, links and attached files have been prepared for general information purposes only (including educational purposes). This communication does not constitute credit assistance, credit advice, personal financial advice or tax advice. Nor is this communication share (stock) advice, and it is not a share (shares / stock) recommendation. This communication is not financial product advice and should not be taken as legal advice; and as such the specific needs, circumstances, investment objectives or financial situation of any particular user (reader) have not been taken into consideration. Users (individuals) should therefore talk with an appropriate Elk Advisor before acting on any information provided, presented, explained or illustrated in this communication. For full disclosures, visit: www.elkcorp.com.au or contact Elk Concierge on 1300 669 363.