Interest Rates Remain on Hold with no Movement in Sight. “Stable and unwavering.”
Not a campaign slogan, although it could be the current motto of the Reserve Bank of Australia’s monthly meetings to discuss the official cash rate. Once again, the board has chosen to keep interest rates on hold with no movement on 1.5%pa since August last year. Although officially winter, the Australian economy hasn’t cooled down. It’s not unusual for housing prices and the share market to drop slightly at this time of the year.
However, it’s nothing to be concerned about. The Australian economy, stresses Industry Super economist and former Treasury forecaster Stephen Anthony, is still growing, but slowly. Steady as she goes – RBA keeps interest rates on hold. The first few months of 2017 has seen the RBA forming a holding pattern on interest rates – the cash rate remains at the record low of 1.5%.
While economists speculate about when (and what) the next move will be, most expect there will be no change for quite some time, and there is even speculation that the move could be down and not up. This is, of course, is good news for mortgage holders. Steady as she goes – RBA keeps interest rates on hold. Melbourne Cup interest rates decision – on hold at 1.5% The Reserve Bank of Australia (RBA) has met today to decide upon the November monetary policy, and although The Melbourne Cup and RBA rate movements have been closely linked in recent years the board has decided to keep interest rates at a record low level of 1.5%.
To many, the decision today involved weighing up continued weakness in inflation against recent strength in east coast property markets and Australian commodity export prices. “September quarter inflation was low on an underlying basis, but probably not low enough to trigger another cut just yet as it is in line with the RBA’s own expectations,” said AMP Capital chief economist Shane Oliver. “Economic growth in Australia looks reasonable, with the worst of the mining investment slump behind us and a rise in commodity prices is starting to boost national income again.” Prices in Brisbane and Adelaide also increased by 3.6% and 3.3% over the same period, meaning nationally, the index has risen by 9.1% year to date. Like this: Another record low as interest rates fall to 1.50% In the lead-up to the Rio Olympics, a new Australian record has already been shattered, with the RBA once again cutting official interest rates from the historic low of 1.75% to an all-time low of just 1.50%.
This is on the back of the fact that the Australian property market remains strong. Knight Frank’s Australian Residential Review July 2016 indicates that, in the past 12 months, some regional areas have actually overtaken and eclipsed capital cities, with up to 17.8% growth over the past 12 months. If you live in a city, there’s no need to panic according to Core Logic data, the Home Value Index rose by 0.8% last month, with the already strong city home prices rising 6.1% overall since one year ago.
RBA keeps Interest Rates on hold at record low. It’s the first Tuesday of the month, and that means that the Reserve Bank of Australia (RBA) has met to determine its June interest rates policy.
Following their decision to cut rates to a record low-level of 1.75% in May, members have chosen the ‘steady as she goes’ option, keeping rates on hold. This continues the spate of good news for mortgage holders and investors alike. The Australian economy continues to show promising signs, with consumer confidence reaching its highest levels in 2½ years on the back of low interest rates and a surprisingly strong GDP report last week, which showed quarterly growth of 1.1% for an annual rise of 3.1% – the fastest pace in three years. Is it time for a home loan review? 3 ways to benefit from the low interest rate environment. No change in interest rates again. It’s the first Tuesday of the month, and that means that the members of the Reserve Bank of Australia have met over lunch to discuss the official interest rates.
Today (and as predicted by the majority of Australian economists) the members have decided to keep the cash rate at 2%, which continues to be good news for all mortgage holders. In fact, there’s only one topic that everyone is talking about at the moment. The housing market is front and centre – not just in capital cities but all across the country as well. There is a distinct trend in price growth between houses and units nationally – compared to this time last year, house values are up 11.6% and units 7.2% increase across the board. Make sure you get the right accountant for your investment property.
You’ve secured your investment property, the tenants are in and paying rent and everything is running smoothly, it may only be mid January but now is the time search out the accountant that will give you the best possible support over the coming years.
Finding a good accountant that will help you to maximise your tax deductions is imperative. Here are a few things you can do to make sure your find the right one; Do they know their investment property stuff? Everyone is entitled to claim expenses which have legitimately been incurred in the course of earning their taxable income and the expenses on your investment property are no different. The tax office even has a breakdown of costs which are claimable for certain industries. Are You a Proactive Rental Property Landlord? If you own a rental property or have ever considered investing in the real estate market you should know that the value of your investment can be significantly impacted by the way it is treated by your tenant.
While disconcerting knowledge, it is useful to know. The obvious way to protect your investment is to select the right tenants and to be proactive in your approach to your investment. Property manager for your rental property Choose an agent who is thorough in their tenant selection process and enthusiastic about maintaining a good relationship with your tenant. Product Focus – Combination Loans or Split Loans. Property or Shares - where should you invest? Sit around a dinner party table or barbecue in Australia and the subject of property will almost certainly come up. This often leads to the question – one that is even more relevant post-GFC – “What’s the better option – investing in shares or real estate?” Shares The pluses for shares – they are very easy to buy and sell.
They can be readily sold either online or through a stockbroker. You can buy small parcels of shares, and diversify rather than putting ‘all your eggs in one basket’. A Beginners Guide to Real Estate Property Investing. Loan Product Focus – Family Pledge Loan. Saving for your first home can be a huge hurdle for some first home buyers, who may not have even heard of a family pledge loan.
Can you NOT afford Mortgage Protection? Imagine what would happen if you couldn’t pay your mortgage.
You just never know what’s around the corner…you might be made redundant, you or your partner could become ill, or have an accident – or worse. Meanwhile, there’s your home – the bank still expects those monthly mortgage payments to be made, even if you’re not earning an income. However, this isn’t all about doom and gloom – it’s about reassurance. Mortgage Protection is a simple and cost-effective way to ensure you have peace of mind. Mortgage Insurance vs. 3 Compelling Reasons to Get a Pre-Approval.
If you are in the market to purchase a property, it is a good idea to be pre-approved by a lender for your loan for three good reasons. Going through the pre-approval process is an important step in evaluating your financial situation. It gives you the opportunity to discuss with your broker the loan products available and to address the loan amount and repayments in terms of your affordability. Doing this before you have found a property allows you to be calm and objective in your decision making process.Knowing how much you can borrow means that you don’t waste time looking at the wrong properties.
You will know exactly what price bracket to look in and thus avoid frustration and confusion.It gives you the edge in a competitive market. Should you renovate or demolish and do a full construction. So, you’ve decided that your current home doesn’t meet your needs and it’s time to do something about it, maybe a full construction or large renovation. The next big decision is whether your best course of action is to renovate and increase the size of your home, or consider demolishing the house entirely and build something completely new withy a full construction - a project home, or architect designed property. Step One – what do you really want? This might sound obvious, but it’s surprising how confusing the situation can become when you take all of the options into account.
What is a 100% Mortgage Offset Loan Account? A 100% mortgage offset loan is very similar to an all-in-one loan. Rather than putting all your salary and other income into your loan, it goes into a mortgage offset loan account that is directly linked to your home loan.