Ask Me For Money

$10,000 Boost extended

The Queensland government has extend the $10,000 Queensland Building boost for another three months.

Deputy Premier and Treasurer Andrew Fraser says the decision follows industry demand and a significant momentum in applications in recent weeks.

Mr Fraser says the program is beginning to make headway in the housing industry, with the $10,000 grant available to all home purchasers buying or building a new home worth less than $600,000.

He says with official interest rates lowered in recent months, and the possibility of more rate cuts, the grant for buying or building a new home means it's never been more attractive to get a new home and support the state's housing industry.

The government says a first home owner also gets the $7000 state-funded first home owners grant and pays zero stamp duty if the home is worth less than $500,000.

Mr Fraser says state Treasury says the initial budget allocation of $140 million will cater for the time extension

Can stalled house prices be attributed to population?

The Adviser website recently published an article about how population may be affecting property prices, particluarly on the Sunshine Coast. See below for full article..

The recent stall in house prices can be largely attributed to the population, new research has revealed.

According to RP Data’s research analyst Cameron Kusher, house prices have stalled in 10 of Australia’s regional cities over the past 12 months. At the same time, these markets have been hit by slower population growth.

Mr Kusher said the results are more pronounced in a number of the larger regional markets.

“Wollongong and Newcastle have been the exceptions due largely to housing affordability constraints where we have found that Sydney-siders are moving to more affordable areas but still within commuting distance of the city,” Mr Kusher said.

While the Gold Coast, Sunshine Coast and Cairns have traditionally been the fastest growing council areas, these too have experienced a slowdown which has been extremely pronounced over recent years.

According to Mr Kusher, this is reflective of the slowdown in both sea and tree change migration flows as well as weaker tourism and retail markets.

Looking at the impact slower population growth has had on housing, Mr Kusher noted that across the detached housing market, all 10 of the regions have recorded a decline in median prices over the past 12 months.

The weakest performing market is currently Townsville which, for the past 12months, experienced a drop in median house prices of 14.3 per cent.

The Sunshine Coast followed with a drop of 8.2 per cent while the Gold Coast dropped by 6.5 per cent.

Although minor, the best performances were recorded in Greater Geelong (0.7 per cent), Wollongong (1 per cent) and Newcastle (1.6 per cent).

What can a rate reduction do for you

On Melbourne Cup day the race winner was overshadowed by news that hasn't been seen in 2.5 years. Finally we get a reprieve from Mortgage payments with a cheaper monthly comittment. How does that sort of thing pan out for you?...

A typical $250,000 mortgage at 30 years on say 7% as a guide would set you back about $1,663 as far as a monthly repayment goes. So you are set for a 30 year ride of payments, bank woes, economic worry and a financial juggling act spanning three decades.

There are ways of reducing the pain. If that 0.25% transpires next week then your payments would reduce to $1,621 a month, and your 30 year struggle continues. That $42 difference is GOLD for you. Say you kept it going and told your lender not to reduce your payments then that $42 could potentially save you nearly 2.4 years of angst and some $40,000 in repayments, and all for not making any changes next Tuesday. And that's only one rate reduction. If you said, "you know what, I want to really save more than $100,000 on this home loan"!, then you simply only need to up that payment from where it is now by less than $15 a week, and you're done in 25 years - WOW!

What would 5 years of $1663 a month buy you? That is effectively what you would have in your pocket each month. Its a great goal don't you think? Why would you want to have a house paid off in 30 years and then have a couple of thousand dollars a month to spend, when you can add $15 to your monthly mortgage now AND have nearly $2000 a month to spend 5 years earlier. No brainer, isn't it.

And a parting thought. If you could do an extra $50 a week on that sized mortgage we are up to 10 years off the loan, which is a saving of $200,000 in payments. You are then young enough to enjoy it. So the plan is then - (are you with me on this?) call your bank TODAY and ask if you can please increase your loan repayment by between $15 and $50 a week. Then sit back and (not miss it) let the good times roll a lot earlier than expected. You'll be glad you did.

And, what's a way of saving in percentage even if the RBA don't come to the party? Refinance to a cheaper rate! I am pretty sure that I caould save yu that or even more to make those dreams come just that little bit closer for you. Call me on 07 5474 4100.

 

RBA October decision - hits a record

Today you may have already read elsewhere that the RBA has left official interest rates on hold for a year now, the longest stable stint in rates since 17 months straight in Jul 2002 to Dec 2003.

People are now asking is there now room for an official rate cut? Well....watch this space, because based on the rickety nature of our northern hemisphere friends there may be room and more for a loosening of policy in coming months if commentary around the country is anything to go by.

Some are saying that the strong Aussie dollar in recent months has in fact been compared to a rate cut but I doubt it has had the same effect as a fully fledged announcement from Glenn Stevens himself. Last month the RBA decided there was not enough flow-through data to confirm the effects of the global financial instability, this month they are saying that near term growth is not going to be as robust as expected and the non-mining sectors are lagging a fair way behind their in-ground, wealthy neighbours. 

Whatever the reason, any movement sideways or down is always welcome. Combine this with a realisation slowly creeping in locally that perhaps the property cycle is somewhere near the bottom and it seems to be a gauge that now may be a good time to begin looking around for that next cheap property, whether it be for investment or as a step up to something better for the family. is the time right. Have your view here.

As far as fixed rates go we have had a bit of enquiry about fixed rates and what to do. Remember that fixed rates take a lot of thinking about and how they will meet your current ones and future ones, so give us a call and avoid being starry-eyed about rates until you find out how they will affect how you can live with them. They are on the slide and it may still not be time to make the move yet. every situation is personal so give me a call or drop me an email here.

About our special offer 9.95% for car loans and also 25 RP Data Reports (valued at $79 each) to give away. Call or EMAIL for details of either.

 

Buying a house with no money down

For those of us lucky enough to have some equity in our existing property, buying a home with no money as a deposit is a real bonus. Some people are unaware that the equity they have is as good as cash and the road to a further investment property just becomes a whole lot easier.

Using existing equity is a great way to leverage your goals toward property ownership and can often make the difference between having a small deposit and paying dreaded Mortgage Insurance, and having sufficient assets to be able to negate that sometimes horrid cost.

So if you have been considering capitalising on the cheaper house prices that are around now and buying into property to create your wealth, then using built-up equity may be the best way to do it.

Give me a call to see how much equity you need to have available in order to realise your dreams of creating a better lifestyle through investing. Our service costs nothing to use and our advice is free too.

Interest Rate Decision Sept 2011

The RBA Governor, Glenn Stevens has said that as far as the RBA can determine Interest Rates should remain on hold for the foreseeable future. This month saw the longest stable cash rate run for 5 years, a sure sign that things globally are giving concern to the nation's rate-setters.

Mr Stevens cites the uncertainty surrounding the events in Greece, Spain and Ireland enough cause to remain cautious for the time being. This of course is good news for borrowers who may have thought rates are going to continue to rise. There are still many schools of thought that the next move in rates may, in fact - be downwards!

Locally the Sunshine Coast Agents continue across the board to find going tough as home buyers remain cautious and consider what is happening on the market. House prices have come back on the Sunshine Coast by a small degree over the last 12 months but speculation on a meteoric rise in property values in coming years is all but quashed. Analysts have stated that the property market was over inflated to begin with and that the current shrinkage is a result of a market that has resumed some normality rather than a detraction through any related GFC hangover, although economic commentary often fuels buyer's negativity.

That being said, house prices have become very attractive nowdays. This combined with the fact that lenders are being very competitive in the market - particularly with fixed rates, means good buys all round. People who are selling need though to be mindful of the fact that unless their property represents great value in comparison to others around it, or is special in nature or location - then waiting time for an offer may be somewhat protracted.

There are definitely a few more first home buyers around and also a few first home builders now coming out of the woodwork to take advantage of the additional $10,000 building boost giving them a $17,000 head start....at least until January when the Boost offer expires.

It is not Investor central out there, that is for sure! People looking to property to stabilize any volatility in equity markets are still more cautious than ever, most likely to the capital growth prognosis for the immediate future.

What we are seeing in our office is a concerted effort from people to look at Debt Consolidation and returning their cash-flow to more manageable levels by tidying their loans into one repayment. Increased lender competition has made it easier to save lots of money by doing so.

In essence with rates on hold and relatively low, and house prices cheap in comparison to more recent times people are still thinking about moving and some of the more bullish players are doing just that...and potentially cleaning up!

 

 

Fixed rates hit a new low

It has been quite a number of years since I have seen fixed rates below 6%. Recently lenders have been battling for market share by slashing rates in the fixed rate field. With rates now from as low as 5.99% it may seem attractive to make a move to a fixed rate - but is it?

Whilst 5.99% may sound pretty good it should be noted that there may still be room to go yet for more cuts to fixed rates as a slowing environment leads to further competition that is sure to lead to more cuts that can only be more enticing. I have many of you on a mailing list to alert if fixed rates seem at their best, if you want to go on that list then email me here.

I always say though, be very careful if you want to fix because it has been shown in the past to be quite debilitating financially if you are not a 'fluid' as you may want to be. If there is ANY uncertainty around income, job security, moving houses or potentially selling then fixed rates are not for you. If there is a urgency to pay off your loan quick then maybe it is not the best option either.

Always call me before making a move, there have been some horror stories of clients making a decision on fixing in what they thought was a cheap rate only to find it costing them money in the long run. I am here to help and it is no bother to me to chat to you to set a straight course.

How to finance a new car

We've all sat in a new car right? What's the first thing we notice? That's right, the smell! New leather and carpet, new trim and the fresh smell of an interior that has hardly ever been touched before. It tends to overwhelm the senses. That seems to be when the sale is made for me. Of course looks, the drive and feel, and any prior research will always have its place...but from a kinesthetic point of view then the sensory satisfaction is the kicker that cements the relationship and says to me, "this is the one!".

Of course the purchase of a new vehicle isn't something that comes totally without stress. Sometimes a few months after the sale one comes to the realisation that the purchase has been financed incorrectly. Did you know that the cheaper finance in car yards isn't always the best for you, or your hip pocket? The deal you strike when a salesman knows you will be financing it in-house may not be the deal you get if you told the salesman you were buying of your own accord and often the differnce between the two is big bucks!

So consider this test...

If you are proposing to buy a new car in the future, go into the transaction with the salesman in the understanding that you are a cash buyer and get your price. Then have a change of heart and mention that you have decided to finance it and see if the price stays the same, it should, shouldn't it? But nooooo. You will find that they may offer a cheap finance deal but it has to be paid for somewhere, right? So the most logical place to make up any shortfall is in the price of the car.

So how can you have the best of both worlds?

We have just introduced our own car finance at rates so competitive that  it beats all majors and others for rate. Finance can be for up to 7 years, is fixed at 9.95% (some 2 - 4% below others in the market), and can be utilised for new or used cars (that are going to be no older than 14 years at the expiry of the finance).

Assessment is quick and we look after invoicing the dealer and payment of the vehicle.

Call today on 07 5474 4100 for a quote  and start smelling that new car aroma in your own garage.

Win $20,000 a month

 

In assisting Queensland to overcome a slump in its economic activity, one bank (Suncorp Bank) is giving six lucky home loan customers the chance to win $20,000 a month over the next six months with the new Home Loan Mega Boost promotion

All you need to do is to apply for a building loan with our office over the next six months and have that loan approved and you are in the draw for the monthly prize.

Oh, and ask us about the special rates that also apply with this promotion.

Call our office on 5474 4100 at anytime, seven days a week.

Terms and conditions apply: suncorp.com.au/megaboost

Insurance and your mortgage

Did you know that Critical Illness insurance was invented by a doctor and not an insurance company?

Dr Marius Barnard a South African Cardiac Surgeon developed the concept of
"dread disease" insurance and it was launched in October 1986 in South Africa. He was motivated by the financial distress his patients were experiencing following the diagnosis of a critical illness.

"We save them physically, but let them die financially"

He talks about a young single mother with lung cancer who literally worked "till she died" as she had no choice but to continue to provide for her family.

Don't let this happen to you. We have access to easy insurance coverage and very competitive rates to cover your loan amount for death or diagnosis of several conditions. It also includes an 'unemployment benifit' in case you lose your job. Call us for a no obligation quote to allow you pice of mind and family protection. 07 5474 4100.