Refinancing a consideration for investors in 2012
Research from LJ Hooker has shown that 46 per cent of first home owners who entered the market less than two years ago are looking to refinance.
The survey conducted by Galaxy Research* on behalf of LJ Hooker Finance found that more than one in five (22 per cent) of those active in the property market were looking to refinance their home loan in the near future.
Of those planning to refinance their home loans, 20 per cent cited interest rates as their primary concern, with a further 17 per cent needing to refinance to consolidate their debts. Twenty-eight per cent of all home owners stated that they tracked spending through a strict budget. Almost half (42 per cent) claimed they were living within their means but felt that an unexpected large bill would put pressure on their finances.
However, not all new home owners are worried about their financial future. Almost one third, 32 per cent, of those looking to refinance were hoping to purchase a second, or investment, property.
A lot can happen to an investor’s living and financial circumstances over the years. Property owners should aim to meet with their broker or lender every twelve months to ensure that their loan product still suits their needs.
*Galaxy Research conducted on behalf of LJ Hooker Finance in September 2011. The study was conducted among 1017 Australians, aged 18-64 years and over who were active in the property market.