Rates remain unchanged for now
By · CommentsThe Reserve Bank Board has decided to hold rates at the current levels for the time being. However, further rises are expected if the economy continues to develop as expected. Read the Reserve Bank Governor’s Monetary Policy Decision. http://www.rba.gov.au/media-releases/2010/mr-10-02.html
The year ended with the process firmly in place t0 return interest rates to more normal levels. As a property investor I ask myself, “What will be the impact of rising rates on my property investments in 2010? I’m excited by what I see!
Many suggest that rising rates will reduce residential price growth and in a normal market this may be the case. However, the residential property market in Australian is very different from most other countries and there are a number of factors which are likely to cause rising rates to have the opposite effect to that which is predicted. Read More→
Reserve Bank Raises Rates by 25 Basis Points
By · CommentsThe Reserve Bank at it’s October meeting decided to raise the cash rate by 0.25% to 3.25% believing that it is now prudent to begin gradually lessening the stimulus provided by monetary policy. Of interest to property investors is the observation that, “Housing credit growth has been solid and dwelling prices have risen appreciably over the past six months”. Click here to read RBA Governor Steven’s statement on monetary policy .
A client asked me today whether it’s better to have all your borrowing with one bank or to spread it around. I intend to address this subject in my next blog.
Record August growth in home values
By · CommentsRP data has just reported record growth in home values despite the First Home Owner grant being wound back. Check out the full report. Click here to read the full report
Offset Account
By · CommentsUse of an offset account can markedly reduce the interest paid over the term of a loan and enable a borrower to more rapidly accumulate equity to which they have easy access. Most lender’s have a product or products within their product range that feature an offset account. With a 100% offset account, the balance upon which the interest is calculated is Read More→
Here’s an opportunity to learn about property investment
By · CommentsInvestor Finance in conjunction with Investor Property is conducting free information sessions on how to make money from property in the current market.
Coffs Harbour – Novotel Pacific Bay Resort 7.00 pm Thursday 1 October 2009
Maroochydore – The Sebel 7.00 pm Tuesday Tuesday 6 October 2009
Sydney – Crowne Plaza Paramatta 7.00 pm Wednesday 4 November
Check out the Investor Finance Website at www.investorfinance.com.au for other session locations and times.
6 Tips for would be Property Investors
By · CommentsI read some tips for property investors in a publication the other day that was a thinly disguised plug for business. If you are considering property investment, here are a few things that I have found to be important in my own property investing journey. I hope they are helpful.
1. Educate yourself about property investing.
My father always told me that, “Experience is the best teacher but the tuition fees are high”. This is nowhere more true than in property investing. While you rarely forget the costly mistakes you make, there is much that you can learn from others to avoid those costly learning experiences. Subscribe to a good investing magazine eg “Australian Property Investor” , read books, watch DVD’s, attend seminars, ask people who are doing what you want to do. Property Investing is a learned skill!
2. Understand your motivation for investing
Property investment is rarely Read More→
Time to move?
By · CommentsThe following from RP Data suggests that further delaying your next property purchase may not be the smart thing to do.
RP Data’s Market Activity Index has continued to climb over the last week indicating the market is still heating up. With market dynamics changing, first home buyers have fallen from 29 percent of the market to 27 percent. Buyers seeking to upgrade or invest are now growing in numbers and we expect this trend to continue leading up to the wind back of the First Home Buyer Boost which is halved on the first of October and scrapped entirely at the start of the New Year.
National Home Value Index Release 31 August 2009
By · CommentsRP Data recently released the following report on home values in Australia showing that Australian homes have now risen 1.8% past their February 2008 peak.
Over the first seven months of the year Australian home values increased across every capital city, rising by 5.9 percent nationally.
Based on Australia’s largest property database, owned by rpdata.com which includes roughly 145,000 sales for the first seven months of 2009, Australia’s housing recovery has continued in the month of July with solid across-the-board capital gains.
According to the market respected RP Data-Rismark Home Value Index, Australian home values rose by
To Fix or Not to Fix?
By · CommentsTo fix or not to fix? – that is the question.
There is an interesting article titled “Borrowers in a fix” Read More→
