SHARP falls in oil prices have dragged inflation to near three year lows.
THE price of Australian consumer goods and services rose just 0.2 per cent, in the December quarter, for an annual rate of 1.7 per cent, official figures on Wednesday showed.
Thursday, March 12 2015
(Source: AFG Mortgage Index) Mortgages processed last month by AFG, Australia’s largest mortgage broker, surged 58% higher than in January, and 16% higher than in February 2014, according to the latest AFG Mortgage Index. The $4.3 billion of mortgages processed in February included a record $280 million processed on the last Wednesday, 25th February, the largest single day’s volume AFG has recorded in its 21 year history. Mortgage volumes varied significantly from state to state, with South Australia showing the greatest increase of 31% on February 2014, with NSW up by 25%, VIC by 21%, QLD by 15% and WA going backwards, processing 4% less in volume than in February 2014. Mark Hewitt, General Manager of Sales and Operations (pictured) said the figures were encouraging. ‘February is the real start to the mortgage year and overall we’re off to a flying start this year. No doubt the February rate cut has made borrowers more confident, but it’s important to recognize the significant variations from one state to another,” Mr Hewitt said. “We’re also keeping a close eye on the proportion of investors, but this hasn’t changed on the levels we’ve been seeing for the past twelve months.” Loans to investors comprised 39.6% of all home loans processed last month, a similar figure to those reported each month for the past year. Fixed rate mortgages declined as a percentage of all home loans to 13.6%, its lowest since August 2011 when only 9.4% of borrowers chose fixed rate loans. The rise of Introductory loans continued to a fresh high of 7.9% last month, indicating the proportion of borrowers. Wednesday, March 11 2015
(Source: The Urban Developer) Australia’s population is likely to greatly exceed the Intergenerational Report’s (IGR4) forecast of 39.7 million people by 2055, according to advisory group MacroPlan Dimasi. The baseline assumption in the IGR4 is that net overseas migration will average 215,000 people per annum. However, MacroPlan Dimasi Chairman Brian Haratsis believes the annual increase is likely to be closer to 300,000 persons per annum, even if the national permanent migrant intake is not substantially raised. “Australia’s economy has become more dependent on long-term temporary residents, including overseas university students, skilled workers and family visitors,” Mr Haratsis said. “Recent history has shown that sectors leading economic growth are dependent on our temporary residents. Our healthcare, professional services and tertiary education sectors provide leading edges to jobs growth.” The 16 million new Australian’s will drive demand for around 12 million homes, 32 million sqm of retail floorspace and 160 million sqm of office floorspace. By 2055 both Melbourne and Sydney are likely to be the same size as Chicago is today at 9 million people. MacroPlan Dimasi argues that it is now time for a refresh of macroeconomic policy, with a focus on industry perspectives (rather than industry policy). “It is clear that both monetary and fiscal policy, as sources for momentum, are close to exhausted. Moving forward, Governments will need to offer more detailed and considered analysis of how the economy is evolving” Mr Haratsis said. One area policy makers should be focussing on is the tourism sector, which is complex as a source of demand for transport infrastructure, retail services and property investment. Our services for overseas tourists are thriving, but this sector remains undervalued and misunderstood. “Framing actions for the next 40 years will require thoughtful assessment of the global services boom, as it collides with the digital revolution and growth in Asian middle class wealth,” he said Wednesday, March 04 2015
Cash neutral investment properties are those that pay for themselves without any additional contributions from the investor. If the property is one that delivers reasonable price growth over time it really becomes a no brainer. A property that pays for itself and builds your wealth and your retirement fund. But do they exist and where do you find them? Do they exist? Yes, but you won’t find them with a sign out the front. And you probably won’t have much success if your are using realestate.com.au either. In fact if all you do is look at properties you will probably never find one. That’s because the property is only one part of the story and there are a range of other factors that will influence a property’s cash position and whether it will be neutral for you, including.
Unfortunately most people get focused on the “property” and pay little attention to the structure around it. In many cases the structure and strategy become an after- thought. This is unfortunate because in many cased they are doing themselves out of thousands of dollars a year. Which in turn could undermine goals like paying off their home loan and building further wealth. Our approach with clients is to start with the strategy first in the context of the client’s financial position. We map out the financial goals and then put in place the correct property and structure to support it. What opportunities are you missing? Contact us for an initial discussion. Wednesday, February 25 2015
If you are considering upgrading your property you may be looking at your existing home and feeling it could make a good investment property. Whether it is the right move for you will depend on a number of factors.
Many people assume they can simply redraw or set up a new loan on their old home (which will become an investment property) and claim that debt as a tax deduction. This is not correct. And if you are audited by the ATO could result in substantial penalties. Contact us for an initial discussion. Monday, February 23 2015
Sydney and Melbourne have definately been the growth stories of the last 2 years. Whereas Brisbane has been sluggish in comparison. There's probably many factors that have contributed to this but the softening in the mining sector and the public service cuts by the Newman government have put a dampner on confidence. While Sydney has been going strong the rate of growth is above the long term trend which suggests at some point there will be a market correction. With a median of $850,000 and average yields of only 3.7% that's a fairly substantial shortfall for investors to fund. With Brisbane sitting at $485,000 average yields of 4.6% and interest rates now sitting at 4.5% and lower we feel its only a matter of time before some catch up occurs. The key factors will be a return of confidence and improvement in the jobs figures. But don't think the market isn't moving up. It still grew 5.1% for the last 12 months. So as always it will be the ones that move early while others sit on the fence that will maximise their upside. Wednesday, February 18 2015
We have recently identified a unique investment option in the Redland Bay area. The property is located in a small infill site in an established area. The location is excellent – only minutes to the main shopping/business district and area is well serviced for schools including the highly regarded Sheldon College. The area has experienced a consistently low vacany rate remaining below 2% for the last 24 months. Expected rental yield is 5.17% Clients wishing to obtain further details on this property will first need to complete our Financial Health Check form. Click here to request a form. Tuesday, February 17 2015
1. Lenders want you to fix your loan Lenders offer fixed rates for one reason only – to stop you from leaving. They are purely a retention strategy. To break a fixed loan can be incredibly expensive and lenders know that in 99% cases this break cost will stop you from leaving. Most fixed rate loans also stop you paying off the loan too quickly. So even if you secure a good rate you can only pay a minimal amount extra which could in fact see you paying more interest than if you had simply stayed on a variable rate. Lenders pay big money to interest rate strategists to work out where rates are heading and where the cycles are. Fixed rates are designed to make you pay a higher cost of funds than if you actually stayed on variable. Your chances of winning the bet are very low. If you don’t believe me have a look the Big 4’s combined net profit. 2. It’s not all about the rate The biggest growth in lender income is via fees. 3. Lenders look after new customers better than their loyal clients Which is why it is always worth reviewing your lending on a regular basis. 4. Pre-approvals are worthless And don’t even get me started on online loan calculators. What your income is and what a lender is prepared to use to assess your capacity are two different things. I think the approach most lenders take is when someone makes an initial enquiry they just say “yes”. That way there is a strong likelihood that person will come back to them for their loan if they sign a contract. If the loan is declined or then approved on ales favourable terms than what they first advised it’s no skin off their nose as you are just another number and they move on to the next deal. 5. Lenders want you to cross-securitise Unfortunately most people are apathetic and continue to pay thousands of dollars each year more than they need to. 6. Valuers dictate the market Many lenders acknowledge privately that valuers can underscore properties and be inconsistent in their valuation methods but no one seems to be prepared to do anything about it. 7. They know most people are apathetic At MTA Finance we provide clients with a realistic appraisal of their options based on their specific circumstances, and ensure that the structure that is put in place is designed to benefit them and not the banks. Contact us for an initial chat to discuss your home loan requirements Wednesday, January 28 2015
SHARP falls in oil prices have dragged inflation to near three year lows. THE price of Australian consumer goods and services rose just 0.2 per cent, in the December quarter, for an annual rate of 1.7 per cent, official figures on Wednesday showed. Friday, January 23 2015
(Source: Phillip Baker AFR) A a week ago, there was no chance the Reserve Bank of Australia would cut rates to 2.25 per cent in February, but now it’s a 40 per cent chance. If the RBA does not cut at the first meeting for 2015, traders are betting it’s an 85 per cent chance that it will happen in March. This follows a larger than expected fall in New Zealand inflation rate which has sparked talk that similar fall in Australia’s inflation next week will open door for rate cut. Still, 22 out of 25 economists say the RBA will keep the cash rate steady at 2.5 per cent next month. MTA is a Brisbane based property investment service helping clients build wealth without impacting their lifestyle. Click here for FREE investment tips Thursday, January 22 2015
(Source: news.com.au) AUSTRALIANS’ retirement savings and investments will run dry within just 10 years of finishing work, alarming new figures show. The significant shortfall makes Australia’s retirement status the worst in the Asian region and the fourth largest gap globally, HSBC’s Future of Retirement report has found. And almost half of the nation’s population (44 per cent) are not afraid to concede they have inadequately prepared for retirement or have not prepared at all. The report, which surveyed 16,000 people worldwide, also found among Australian respondents 16 per cent believe they will never be in a position to full retire compared to the global average of 10 per cent. Australians expect their retirement to last 23 years but the shortfall of 13 years is among the worst of the 15 markets surveyed. An ASFA spokeswoman said people are living longer in retirement than ever before — the average life expectancy in Australia is 83 — and they need to prepare for this. “It’s important they plan to save enough so they can live comfortably for all of their post-work years,’’ she said. “The earlier you start saving the more you will benefit from the magic of compound interest. “For example, if you’re 30 years old, having just one less cup of coffee per day and putting the extra money into your super can add over $125,000 to your final superannuation balance when you retire.’’ ASFA data released last year showed in 2011-12 the average super balances of Australians was $197,000 for men and only $105,000 for women and most retirees would need to rely on the age pension in retirement. The HSBC report found that paying off a mortgage or other debts was a significant barrier a majority of Australians (51 per cent) to financially prepare for retirement. HSBC’s head of retail banking and wealth management Graham Heunis said “Australians are in denial about retirement planning.” “Being concerned is not enough — the next generation need to take action and start saving now.” MTA is a Brisbane based property investment service helping clients build wealth without impacting their lifestyle. Click here for FREE investment tips |