General

Welcome to our April newsletter The Housing Industry Association Summer Report indicated that housing starts increased by 11.7 per cent to 161,970 during 2012/13, following two consecutive years of decline. Activity is forecast to rise again in 2013/14 by 2.8 per cent, going on to reach...

Welcome to our March newsletter The decision came as no surprise to market analysts, who expect the RBA to continue their policy of low interest rates for the remainder of 2014. In his statement after the meeting, RBA Governor Glenn Stevens confirmed these expectations by saying...

Welcome to our February newsletter

Just as many leading economists predicted, the Reserve Bank of Australia decided to leave the cash rate on hold at 3.0 per cent at its February meeting. As the effects of last year’s rate cuts continue to filter through the Australian housing and financial markets, the Reserve Bank decided to err on the side of caution. “Sentiment in financial markets has continued to improve, with risk spreads narrowing and funding conditions for financial institutions becoming more favourable,” Reserve Bank governor Glenn Stevens said. “The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand.” The central bank’s decision comes on the back of some encouraging news in both the residential housing and mortgage/lending markets.

Welcome to our January newsletter

With the New Year upon us, it?s time to reflect on 2012 and think about what we wish to achieve over the coming 12 months. The New Year is the perfect time to evaluate your past decisions and assess your plans for the future. Whether you?re looking to build an investment portfolio this year, renovate your existing home, or simply stay on the financial path you paved in 2012, planning is essential. When creating your mind map for the year ahead you will need to consider a few factors from the year that was. First off, the cash rate took a tumble in 2012, and this is expected to remain relatively low for the foreseeable future. In December, the Reserve Bank lowered the official cash rate to three per cent ? the fourth reduction for the 2012 period. With the cash rate now currently standing at record low levels, there are plenty of savings available, with many lenders opting to pass on some, if not all, of the December rate cut to borrowers.

 

Welcome to our December newsletter

Mortgage holders and home buyers received an early Christmas present this year, with the Reserve Bank slashing 25 basis points off the official cash rate and taking it to an all-time low of just 3 per cent. In terms of interest rates, it has been a good year for borrowers, with more than 125 basis points cut from the cash rate over the past 12 months. In fact, we haven’t seen a cash rate this low since September 2009. So, while the news came as little surprise to many leading economists, home owners and potential buyers have an extra reason to celebrate this festive season. Several lenders have been quick to pass on the rate cut, with many more expected to make a move over the coming weeks. Whether you are an existing mortgage holder or are looking to enter the property market soon, rate reductions can only mean one thing – savings.

Welcome to our November newsletter

Just as Green Moon was a surprise winner on Melbourne Cup Day, the Reserve Bank’s decision to leave rates on hold at 3.25 per cent left many industry pundits shocked and surprised. For the past six years, the RBA has been determined to take some of the limelight from Australia’s race of races by adjusting the cash rate each November. This year however, they have broken tradition and seem happy to leave rates on hold – employing a ‘wait and see’ approach for the next few months. Speaking of the decision, Reserve Bank governor, Glenn Stevens, pointed to early recovery signs in both the European debt crisis and Australia’s lacklustre housing market. “Financial markets have responded positively over the past few months to signs of progress in addressing Europe's financial problems, but expectations for further progress remain high,” Mr Stevens said.

Welcome to our August newsletter

Earlier this month, the Reserve Bank of Australia (RBA) chose to leave the official cash rate on hold at 3.50 per cent, taking a ‘wait and see’ approach to rates, as many economists predicted. 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 especially for retail sales and house prices. Reserve Bank governor Glenn Stevens said inflation was expected to be consistent with the Bank’s target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the Bank’s stance on monetary policy remained appropriate. “In Australia, most indicators suggest growth close to trend overall,” Mr Stevens said. “Labour market data show moderate employment growth, even with job shedding in some industries, and the rate of unemployment has thus far remained low.”
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