The total value of Australian residential real estate has now passed the $8 trillion mark, reaching $8.1 trillion at the end of April, according to CoreLogic.
CoreLogic head of research Eliza Owen said that puts the value of residential property at:
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4 times the size of Australia’s GDP
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$1 trillion more than the combined value of Australia’s stock market, superannuation savings and commercial real estate stock
This valuation landmark is an important reminder that whether you want to refinance an existing loan or buy a new home, it’s vital to know the value of the property.
If your loan-to-value ratio (LVR) is less than 80%, your mortgage broker will have a better chance of getting you a lower interest rate. Also, you won’t have to pay lender’s mortgage insurance (LMI).
Existing homeowners can borrow against the equity in their home, and use it to fund the deposit on an investment property.