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According to the latest news coming from various economists, there is the increasing likelihood that the Reserve Bank may announce another rate cut in early February.
And this is more great news for many mortgage holders. Read the rest of this entry »
Sticking to twelve simple financial resolutions in 2012 can potentially save you thousands of dollars each year as well as the opportunity to redefine your financial plans.
And much of this is really just a matter of working with what you already have, by restructuring your existing arrangements so they work more effectively for you. Read the rest of this entry »
I love Christmas.
I love the trimmings, the trappings, the ribbon and the wrappings. So at the risk of not wanting to sound like the Grinch who stole Christmas…..
While you’re contemplating how much turkey/seafood/pudding you’ve consumed over the Christmas period – why not use some of that downtime to do an audit of your personal finances? Read the rest of this entry »
Talking to some older folk over the last week about times when interest rates were around eighteen percent and I am reliably told that there are many watching with almost amusement at the goings on in relation to the continued will they/won’t they pass that rate cut onto borrowers guessing game.
Because it was back in their day that a bank not passing on a rate cut was almost the rule, rather than the exception.
And with interest rates getting up to eighteen percent around that time, that was a whole lot of sweat going on!
So that generation can certainly add some perspective to what’s happening in the current times.
But there is one difference now. Thanks to competitors such as non-bank lenders, credit unions and building societies continuing to be a force in the mortgage marketplace, rate cuts are now more routinely passed on in full to borrowers.
And the reality is, this pattern now is largely due to the continuing existence of alternative lenders, combined with people exercising their right to choose.
After the 1990’s, benchmark rates came down by almost two percent after non-bank lenders such as Resi entered the market and have remained lower largely because our sector of the market continues to be around.
Sure – the big banks will continued to be pressured, whether it’s by government, borrowers or through the existence of other alternative lenders to more carefully consider their decision on rates, so that won’t change.
But at the end of the day, borrowers are now in a position where if they don’t like what’s happening, they can take their bat and ball and… move.
With continued reports of consumers becoming more conservative with their spending and making a concerted effort to pay down debt, could we be heading back to the future? Read the rest of this entry »
With the NSW recently announcing that from the first of January next year, it will abolish stamp duty concessions for first home buyers buying new homes, it’s been reported this week that there is now more activity in the property market from first home buyers keen to see if they can get in before that deadline.
So if you’re a first home buyer and you feel like you’re ready, here is a suggested list you may want to check off before you decide to pounce: Read the rest of this entry »
The Reserve Bank Deputy Governor, Ric Battelino, delivered a speech today at an investment conference on the latest economic and financial developments – and the news wasn’t all doom and gloom Read the rest of this entry »
With the latest seasonally adjusted unemployment figure released by the Australian Bureau of Statistics showing 5.2%, there is now (well – for this week at least) speculation that an official rate cut by the Reserve Bank is less likely.
But apart from the potential impact a jobs figure has on inflation figures and their subsequent interpretation by the Reserve Bank, what else does that figure actually tell us about what’s happening here in Australia?
What it does tell us is that if we look at what is actually trending in the job market, the situation is actually quite static.
And for those with mortgages, a static job market may also provide additional evidence that people are exercising more conservative financial behavior so they can knuckle down and try to better manage their situation with what they have.
After all – we’re no longer in the same job market that we were even five years ago before the GFC when many people felt comfortable changing jobs just to chase a bit more money.
Times have since changed – and it’s still very much a moving feast for committed consumers, most of who are keeping their cards very close to their chest indeed.
There’s a change in dinner party banter occurring around many dining tables in Australia.
Gone are the conversations which centre around property prices and interest rates – only to be replaced by what good deal you can get on your internet, utilities, phone, groceries, petrol, car, insurances and basically anything that constitutes household spending.
In fact, it’s routine for someone to talk up which company or website they found their bargains through and how much they have saved in the process.
How times have changed. Read the rest of this entry »
Forget mortgage stress – it’s household stress we are suffering from!
This was highlighted recently in the latest Genworth Homebuyer Confidence Index (HCI) which shed some light on how borrowers are managing their financial obligations – particularly in light of various media reports about mortgage stress. Read the rest of this entry »