Real Estate, Mortgages, Home Loans and Interest Rates - Do you get it?

Real Estate, Mortgages, Home Loans and Interest Rates - Do you get it? Is it all too much to take in? For somebody like me who is just starting out in the investment market, it seems like there is a lot to understand before you take the first big step.

Finding the right investment or home to live in is becoming increasingly difficult in Sydney. Not only due to pricing but the lack of available properties and land. What was considered farm land 10 years ago is now becoming heavily built suburbs and its stretching more and more inland from the centre of Sydney. Another question you have to ask yourself which is popular with people I know is that would you rather live in the best home in a not so good area or would you rather live in the oldest or run down house in a top area?

With mortgages it seems every Tom, Dick and Harry can offer you a loan. Ive had a home loan application and talk with both a bank and a mortgage broker and they were quite different but I would say the broker has helped me out more than anyone has so far and they visit you for free in the comfort of your home.

My bank home loan meeting was quite confusing to be honest. They kept mentioning personal insurances and stuff like that which I still dont really get and will need to look into.

What about these interest rates. Are they going to keep going up or has it peaked and it should spiral down? Will a change of government this year change this? The reserve bank says that for rates to go down, we need to cut down on spending but this is difficult in today' World with so many goodies like TVs, computers, MP3 players and etc readily available at amazing prices and with great technology advances.

And is Real Estate still the right investment? Would you rather put your money in stocks and shares? Australia is a place that is fascinated with Real Estate and this will never end, I just hope I can get on the bandwagon before the next boom hits.