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Your Borrowing Capacity Has Probably Improved

borrowing capacity covid email header

The current historically low interest rates have bumped up the borrowing capacity for most people, which in turn is allowing them to get into the market. Increased borrowing capacity also allows people to release some of their equity, to help them through tough times. It’s important to understand how banks lend money. They want to know who is borrowing the money. They want to know if you’ve got dependants and what the purpose of the funds is for. But as you can see in the image below of a bank calculator, banks are primarily interested in your cash flows. They’re…

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The Property Market Turns Cash Flow Positive

graph of the cash rate

Note: If you would like to learn about the impact of low interest rates, you may prefer to watch this video instead.   Globally, we have are facing some challenging times. But it’s not all doom and gloom. There is some good news worth sharing, in particular for investors. This unique situation we are all in has created some amazing opportunities. Impact of low interest rates Let’s first talk about what the impact is on our property market with regards to these record low interest rates. As you can see in the graph below, Currently we’re sitting at 0.25% in terms…

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Q&A: What does walk score have to do with property?

people walking

Question: I keep hearing about “walk score” in relation to property. What is it and does it matter? Answer: Walk Score is becoming increasingly significant in terms of property value. Firstly, Walk Score is a measure of a community’s walkability. That is, how easy it is to walk from your home to key amenities – shops, parks, schools, work. Population density and block length are also taken into account. Walk Score ranks properties on a scale of 1 to 100 with a high Walk Score estimated to add between $30,000 to $50,000 to a property’s value. While the proximity of key facilities has always been important to homeowners and renters, it’s becoming even more…

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