Author: devadmin

Welcome to our July newsletter

A shaky few months have seen many would-be home buyers and investors sitting on the sidelines, waiting patiently for some economic certainty to arrive. Thankfully, July is shaping up to be a positive month, with some early signs of economic stability starting to emerge. The Reserve Bank of Australia (RBA) left the official cash rate on hold at 3.50 per cent earlier this month after rate reductions in May and then June saw the cash rate cut by a significant 0.75 basis points. While the RBA appears to be erring on the side of caution, the decision to keep rates on hold can be seen as an early indicator of a stabilising economy. Speaking about the decision, Reserve Bank governor Glenn Stevens said recent data suggest that despite widespread media concerns, the Australian economy has performed relatively well in the first part of 2012. “In Australia, recent data suggest that the economy continued to grow in the first part of 2012, at a pace somewhat stronger than had been earlier indicated,” Mr Stevens said.

Welcome to our June newsletter The Reserve Bank of Australia (RBA) this month cut the official cash rate by 25 basis points, the second consecutive rate reduction this year, marking a 0.75 per cent reduction in the cash rate since April. The RBA’s decision to lower the official cash rate to 3.50 per cent was largely attributed to the continuing European debt crisis and poor consumer sentiment. “Financial market sentiment has deteriorated over the past month,” RBA Governor Glenn Stevens said. “Europe's economic and financial prospects have again been clouded by weakening growth, heightened political uncertainty and concerns about fiscal sustainability and the strength of some banks. “[In Australia], both households and businesses continue to exhibit a degree of precautionary behaviour, which may continue in the near term,” Mr Stevens said. Earlier this month, Australian shares hit a six-month low,

Welcome to our May newsletter

The Reserve Bank of Australia (RBA) this month cut the official cash rate by 0.5 per cent, the biggest cut seen since the GFC-fuelled one per cent rate reduction in February 2009. The move, designed to ease monetary policy, brings the official cash rate down to 3.75 per cent, its lowest level since December 2009. The RBA said the decision was largely due to weaker than expected inflation data as well as ongoing weakness in both the international and domestic economies. While economic “shocks” appear less prevalent, conditions remain decisively sluggish across the board, with the economy in serious need of a “boost”, RP Data economist Cameron Kusher said, welcoming the rate cut. “We have seen a lot of softness in the economy of late,” Mr Kusher said. “House prices are down on where they were, retail activity has slumped and headline inflation was just 1.6 per cent for the year.” Other property and finance commentators were also quick to welcome the RBA Board’s decision.

Welcome to our April newsletter

The start of the year might have been rocky, but 2012 might just prove to be a year of stabilisation – welcome news for home buyers and investors alike. For the third consecutive month, the Reserve Bank of Australia (RBA) left the official cash rate on hold when it met on Tuesday April 3 and while the road to recovery for Europe still looks like being a long one, expectations of a major shock for the Australian economy are declining. The official cash rate now sits at 4.25 per cent, with forecasts from leading economists suggesting this could remain so until at least mid-year.

Welcome to our March newsletter As we head into autumn, the outlook for the Australian economy appears to be reasonably favourable. But let’s not kid ourselves: while the domestic economy seems to be weathering global volatility quite well, we’re not out of the woods yet. The ‘GFC 2’ may no longer be imminent, but a majority of economic commentators expect the road out of the global financial crisis to be a long one. At its monthly monetary policy meeting on 6 March 2012, the Reserve Bank of Australia (RBA) left the cash rate unchanged for the second consecutive month, at 4.25 per cent. The Bank’s governor, Glenn Stevens, provided some cause for optimism,

Our February 2012 Newsletter is now out. In this issue I cover:

- Property Vs. Shares

- House and Land Considerations

- Getting to Know non-Banks

Welcome to our February newsletter, The cash rate remains the same this month after the Reserve Bank of Australia (RBA) decided the current rate of 4.25 per cent is “appropriate” for the time being. The February 7 decision, marking the first Board meeting for the central bank in 2012, followed two consecutive rate cuts in the lead up to Christmas. While the announcement surprised a few mortgage and property industry pundits, with many economists having expected a 0.25 per cent rate cut, Deloitte Access Economics’ Chris Richardson said he wasn’t surprised to see the Reserve Bank “err on the side of caution”. “The rate cuts haven’t necessarily stimulated the property market as the RBA would have hoped,” he said. “So the Board may prefer, moving forward, to leave rates on hold and see what happens in Europe.” RBA governor Glenn Stevens said acute financial pressures on banks in Europe had eased considerably during the latter part of 2011, as a result of the actions of policymakers. “Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made,” he said.

Hello Fans, Followers, and Family of LMM! By now you may be familiar with my Monthly Newsletter which focuses on the latest news, trends, and happenings in the financial world. To round out the information we at LMM provide you, I’m pleased to announce “The Builder’s Blog”, LMM’s latest edition to our series of blogs! At the helm, will be Dan Coperich, a Professional Building and Development Consultant whom I’ve known and had the pleasure of working with for the past three years; providing a full suite of building and financial services to our clients. Over to you Dan! Thanks for the warm introduction Nick, and I’ll begin by saying I’m very excited to have the opportunity to share whatever information and tips I can through this blog. I’m always one to keep a positive attitude toward the market, reminding myself there are always opportunities in any climate. With interest rates stabilizing, this is a great time to step back and examine your own personal finances by meeting with your accountant, your financial planner, your partner (who may very well be your accountant and planner too!), and a certain broker who I may have mentioned at the start of all this =)

Even with an uncertain economy, rental yields are still expected to continue to increase in most capital cities. As the population in these cities continues to grow, demand for housing will also increase. However with the recent economic conditions this increase in demand has not been satisfied with an increased supply of housing, resulting in a shortage of housing stock. Falling vacancy rates and higher rents have made it more difficult and expensive to find rental accommodation.
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