Australian Dollar Update
The Australian dollar is experiencing significant seller pressure today in response to a soft reading on the closely watched ‘flash’ manufacturing output index out of China. A ‘warning’ from S&P that it may downgrade Australia’s credit rating if political deadlock precludes meaningful repair of Canberra’s budget is also cited as contributing to the selling pressure. […]
Want an Interest Rate Cut? Don’t Hold Your Breath
The Reserve Bank meets in a few days, already we are getting speculation on the future for interest rates. If you are holding out for a cut in interest rates, you may be disappointed. But the good news is that interest rates are likely to remain low for a considerable time. On Wednesday, there were […]
7 Tips to Making a Profit from Cool Markets
I am in Perth. It is 3.00am and I cannot sleep. So, what do all good mortgage brokers do in such instances? Reflect on the diverse nature of Australia’s property markets and where best to invest of course! According to RP Data, Perth property declined 0.4 per cent last month. And, conversations with WA colleagues […]
Yes, The Screw Has Turned
You heard it here first. In May I said that the screws were being turned to cool down lending on investor properties. You can read this by clicking here. Now, the Australian Bureau of Statistics has reported that the number of home loan approvals fell by 6.1 per cent in May. Financial regulators have expressed concern […]
Rates on Hold
As capital city house prices continue to heat up, The Reserve Bank of Australia has announced the result of its monthly board meeting. As expected, the Reserve Bank left the official cash rate at a record low of 2.0 per cent for the third consecutive month. All 33 economists and commentators surveyed by comparison website […]
Winter’s A Good Time To Buy Property
Its winter, there are fewer properties on the market and prices are at record highs, can you still buy property? The answer is yes – if you are organised. When it comes to the quieter months, it is likely that there will be fewer properties on the market to choose from, however there […]
Case Study – Steve and Colleen Pocknall
Steve and Colleen contacted me in February 2014, wanting to buy their first home together. They had a strong saving’s history. But their loan application was complicated by the fact that Colleen was new into her teaching contract and they were dipping their toe into the Sydney property market just as it was going into […]
The Money Is Still Flowing
Despite recent changes to investor lending introduced by the banks, many borrowers can still get a loan – and at great rates. Prompted by pressure by the Australian Prudential Regulatory Authority (APRA), many lenders are reducing the amount they will lend to investors. However, a buoyant property market, combined with a competitive banking system, means […]
Time to Fix?
A recent surge in the cost of funding term loans has triggered a wave of repricing in the fixed rate mortgage market in the past week. Unlike variable rate mortgages that are linked to the Reserve Bank’s monthly decisions on the cash rate, fixed rate mortgages are priced according to movements in rate benchmarks […]
Your Bank May Not Allow You To Invest Where You Want To Invest
Due to government pressure, banks are making it tougher to buy investment properties. Now, one bank has decided to restrict lending in one particular state. This decision will have a profound impact on which property markets will thrive and which go sideways. This week, ING announced a reduction in the amount it will lend […]