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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 »
Many will remember those two young Australian adventurers that kayaked from Australia to New Zealand a few years ago.
After overcoming treacherous conditions, sickness and fatigue, they eventually came ashore across the Tasman on very wobbly legs to great fanfare – even from the Kiwis!
Well – they’re back at it again – except this time they’ll be on terra firma attempting another adventure that’s destined to have people shaking their heads and saying “What the??”.
And just as we have been over the last 10 years, Resi will be along for the ride – figuratively speaking – as we lend our support to those two global roamers affectionately known as ‘Cas and Jonesy’.
In just under one month’s time, childhood friends and adventure junkies, James ‘Cas’ Castrission and Justin ‘Jonesy’ Jones will attempt to walk the 2200km from the edge of Antarctica to the South Pole and back again – something that’s never before been completed single handed.
At the moment they’re in NZ, training and acclimatising themselves in a dedicated program which will prepare them for the gruelling challenge ahead. And launch day for ‘Crossing the Ice’ is fast approaching.
You’ll be able to keep up with the progress of their ice crossing through Resi’s website at www.resi.com.au where you’ll find information about the boy’s latest adventure challenge in the About Us section under our Sponsorship and Events page.
There you can also read about Cas and Jonesy’s most recent extreme achievement, affectionately known as ‘Crossing the Ditch’ from Australia to New Zealand.
In 100 years of polar exploration no-one has EVER walked from the edge of Antarctica to the South Pole and back without assistance. Many have tried, none have succeeded.
But this year, these two Aussie Adventurers will attempt to achieve the impossible during the Centenary Anniversary of Scott’s and Amundsen’s now famous expedition.
For three months and over 2200km they will drag 160kg sleds with everything they need to survive in the harshest environment on Earth.
And why?
Not just for the sheer challenge, but also because they will be using this expedition to raise much needed funds and awareness for ‘You Can’; a national fundraising campaign to build specialised youth cancer centres across Australia.
And because, just like Resi – they want to Own their Dream.
Cas and Jonesy have a history with Resi that spans back to 2001 when Resi sponsored their first expedition.
Since then, Resi has been involved in three of their major expeditions – this is probably the most stable relationship Cas and Jonesy have had in their lives!
So with 29 days left before take-off – we wish Cas and Jonesy all the best.
Boys…..three words. Own your Dream.
Thanks to a 24 hour news cycle, we now have rolling updates on everything from around the world, if we choose to keep glued to our TV and computer screens.
And for some it’s quite addictive. Because just as reality TV has capitalised on people’s fixation to watch the good, the bad and the ugly of people’s everyday lives - so too has society’s appetite grown for watching global events unfold before our very eyes.
If we need a recent example, who can ever forget the Japanese tsunami?
But this has had more serious implications on matters of economic importance such as what might happen to official interest rates, because expert’s predictions can now change from da- to- day.
Just take the events of the last few weeks…
In early August analysts were tipping rates to rise because of higher than expected inflation figures for the June quarter. And then… as global sharemarkets all took a huge tumble thanks a still tenuous US economy and the economic situation in Europe, a rate cut was then being more widely predicted.
And most recently, RBA Governor Glenn Stevens last week told a parliamentary committee, that Australia is well positioned to tackle any further weakening of international conditions and that inflation data is “still concerning,” easing speculation they will cut interest rates.
It’s a bit like watching a tennis match, with volleys going back and forth. When really, all consumers want is some semblance of stability - which is difficult to attain in an information rich world where everyone can so easily promote their opinion.
So for borrowers, this abundance of information can be overwhelming and needs to be balanced out by starting to think about their goals again so that no matter what happens, you have a clear path to follow.
Keep your eyes on the prize, but remember that too much information can sometimes be a dangerous thing. And perspective is a wonderful bedfellow.
With global markets still in turmoil from events emanating from the US and news reports suggesting this is the beginning of the end, it’s easy for property investors and borrowers to panic.
But that’s the last thing you should be doing.
If – and I use the term ‘if’ – the current slide in our sharemarket and currency puts our economy in the doldrums for any amount of time, as a property owner, one of the last things you would want to do now is panic and sell.
Why?
A buyer can spot a nervous seller at 100 feet and is likely to result in you getting far less than you would if you bunkered down to ride out the storm.
No one is really prepared to say exactly how this current turn of events will manifest over the short to medium term for Australia but there is now certainly more talk that official interest rates may indeed be cut in September.
So that being said, if your repayments are likely to decrease, it makes sense to hold onto that property the loan is against because it’s now costing you less – and wait for things to calm down.
And that’s because the property market – like interest rates – is cyclical by nature.
An opportunity may even exist for some borrowers to keep their repayments at the same level they are currently at now (if rates do go down) and take the opportunity to pay more off their mortgage while they can.
Rather than being convinced it’s all doom and gloom, there may be some silver lining in that cloud.
If today’s address at a business luncheon by Reserve Bank Governor Glenn Stevens is anything to go by, he has mentioned that subdued household spending will likely rebound “at some point” as consumers gain confidence in the sustainability of mining-led growth.
More specifically he said “some sectors are also seeing the impacts of a shift in household behaviour towards more conservatism after a long period of very confident behaviour.” Read the rest of this entry »