LEVELS OF INTEREST

Money expert Effie Zahos reveals how not to let interest rates eat up the value added by a renovation

Personal finance commentator, financial literacy campaigner and author Effie Zahos is @effiezahos “A HOMEOWNER WITH A $500,000 MORTGAGE COULD SEE REPAYMENTS PER MONTH INCREASE BY ABOUT $650 COMPARED TO BEFORE THE RATE HIKES” A good renovation can add tens, if not hundreds, of thousands of dollars to the value of your home. A bad home loan (with a high interest rate), however, can add thousands of dollars to what it will cost you, and in a rising interest-rate environment such as the current one, you don’t want any profits on renovations to be eaten up in interest payments. Forecasts show that the cash rate could rise to 1.75% by the end of the year, and keep rising to 2.5% by the end of 2023. If that’s the case, then a homeowner with a…

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Inside Out (Digital) - 1 Issue, July 2022

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