Ruralni turizam

Is the Rural Property Market in Australia on the Move?

After more than 18 months in a very subdued property market there appears to be increased buyer interest and activity in farms and rural properties in Australia with sales on the increase.

Prior to the recent Global Financial Crisis the market for farms and properties within Australia was quite strong with values increasing each year since 2001.

It was during these times when financial institutions were flush with money who lending criteria was based upon the assets owned by the borrower that we saw increased competition from such institutions towards the lending of funds to acquire rural holdings in Australia.

With the relative ease of securing funding for property purchases came increased competition from buyers for farms and properties within rural Australia resulting in increased property values.

After the Global Financial Crisis the financial institutions operating within the rural sector of Australia changed their lending policies to one where the property being purchased had to have the ability to pay its own way and not rely upon any other asset owned by the purchaser. That policy is in general still in place today.

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It was also after the Global Financial Crisis that intending purchasers decided that the market had become too hot and the values for rural properties had become too high to seek a return on investment and as a result of these two factors the Australian rural property market almost came to a standstill and has remained stagnant for the last 18 months.

With the breaking of one of the worst droughts to affect Australia and the rise in most commodity prices for wool, lambs, beef, grains and sugar cane on the domestic and international market some confidence was looks like being restored back into the property market.

During the last 18 months property owners have been reluctant to accept that in order to sell their farms they needed to accept that values for their properties had fallen and the market had changed from a seller’s market to a buyer’s market. Those property owners who have accepted the new values have in general been more successful in finding a buyer for their property.

Rural property agents across most states of Australia are reporting increased inquiry and sales from both local  and international buyers who see Australia as a secure country to hold land in and in general land prices being generally still fairly cheap.

Whilst there has been increased buyer activity we will not see a rise in values coinciding with this increased activity, although as usual those rare blue ribbon properties that become available to purchase from time to time will as always attract a premium price.

For those looking to buy a farm or a larger rural holding the time right now could not be much better with good seasonal conditions, strong commodity prices and a wide selection of properties on the market at fair market values.

Source: ArticlesBase.com

8 Benefits of Rural Housing Loans

Many properties can be classified as rural housing and accepted under the USDA Rural Housing Loan Program. This program guarantees rural housing loans for lower to median income applicants for the purchase of owner-occupied single-family homes and gives buyers the opportunity to buy a home in the country or the outskirts of a town

Loans are offered in two separate categories. Rural housing direct loans are funded by the government for very low-income families, and applicants may obtain 100 percent financing to purchase a home or purchase a site and build one. Rural housing guaranteed loans can be used to build, repair, renovate or relocate a home. Applicants with income up to 115 percent of the median income for the area are eligible, but credit requirements are more stringent

The USDA Rural Housing Loan Program offers several benefits.

Down payments represent the most immediate expense and hurdle to purchasing a home. Avoiding this requirement can make a major difference in the type of dwelling a family can afford.

Closing costs are another upfront expense in home purchases, and the ability to finance them means the expense can be lessened according to ability to pay. If the appraised value of the property is higher than the purchase price, the USDA allows some of the closing costs to be financed.

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The monthly expense of a mortgage insurance premium can become a burden for many homeowners. USDA Rural Housing saves the buyer from that expense.

While it’s always good to maintain some financial flexibility, today’s homebuyer is often pressed to make ends meet. The need to tie up some of your assets is avoided in rural housing loans.

The seller is allowed to contributed six percent of the purchase price to cover closing costs, pre-paid taxes and insurance. A savvy buyer can negotiate to ensure some of these expenses are covered.

Currently, borrowers with a minimum credit score of 620 can be accepted.

Just another potential expense avoided under the USDA Rural Housing Loan Program!

The ability to spread costs over time is key to any successful mortgage application and payment. By allowing the maximum of 30 years, the USDA Program gives the buyer the maximum amount of time possible to repay the loan.

The USDA provides an interactive web site at:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

to help you determine your eligibility for its Rural Housing Loan Program. The first step involves determining whether the dwelling is located in an acceptable area. The second evaluates your income eligibility. For more information, you can also contact the USDA directly at a variety of phone numbers organized by program type and state on the web site.

Source: ArticlesBase.com