Annual Reviews - Does it really matter?
Every year we make a New Year's resolution such as to get fit, eat well, learn a new skill, find a new job etc. How many of you have thought about reviewing your financial situation and how many of you have set goals for your Finances?
Whether you are a first home buyer or a seasoned investor, annual review is a must. For first home buyers a review will simply reflect whether they can afford a higher mortgage when compared to what they pay as rent. Usually first home buyers will be required to pay almost double the amount as mortgage repayments. On top of it additional expenses such as Council rates, house insurances and risk insurances etc will create additional costs. Your review could be a classic example of doing a budget. Creating a budget will help you to achieve your dream to purchase your home.
For seasoned investors it is better to review their financial situation and check whether their existing loan is appropriate for their current situation. Reviews should be taken seriously like your regular health check up or Warrant of fitness for your vehicle. With my experience people who have done their reviews on a regular basis have achieved their financial goals of paying of their mortgage in shorter period than the standard 30 year loan term. Many investors are not aware of what options are available currently in this market. Knowing your equity position and net worth will allow you to pursue your goals further.
Don't delay your annual review, the onus is on you to take your first step.