"Interest Rate Alert: RBA Announcement"

Here's another interesting article for you to read. This one is sourced from Rates Direct.

"In their first meeting since December 2012, the Reserve Bank decided not to give homeowners further assistance by keeping the cash rate on hold, at least until their next meeting on the 5th March 2013. Despite inflation in December 2012 being half of what was anticipated, and little revival in non–mining sectors of the economy – conditions were not deemed to be dire enough to warrant a further cut in the cash rate.

According to the ABS, the December consumer price index rose by a mere 0.2% – a fraction of the 1.4% jump we saw in the September quarter – with inflation moving towards the lower end of the RBA's 2%–3% target range at 2.2%. Despite these findings – there is positive evidence suggesting that China's recent economic slump has bottomed out, the US has temporarily avoided their 'Fiscal Cliff' as well as data that the Australian government's carbon tax had less of an impact than first thought – may have caused the RBA to hold back on cutting rates for now."

The data that this article was based on was  sourced from the Australian Bureau of Statistics.

"Buying at Auction"

"Did you know that sale by auction is a three stage process that gives you three opportunities to buy?

If you have the funds available you may want to bid at the auction.  Unfortunately not everyone is in this situation, some are waiting on finance to be approved, while others may need to sell their own property to before they can buy a new one.  This shouldn't stop you from buying a property that is for sale by auction.

You could attend the auction, wait and see if the property is passed in, and then make an offer that is subject to sale or finance.  This is risky, the property may sell under the hammer, or the seller may negotiate with the highest bidder and you may not get a chance to make an offer.

Alternatively you can make an offer before the auction.  Many sellers are willing to accept reasonable offers in advance. They have the certainty of knowing the property is sold and avoid the stress of auction day.

If you are genuinely interested in buying a property that is up for auction, but aren't in a position to bid, speak to the agent."

This article was sourced from the Acton Real Estate 2013 newsletter.

"Residential recovery may derail rate cut plans"

Here's another article for you guys. this one is sourced from Western Australian Business News and was written by Michael Ramsey and Shanna Crispin.

"Perth's housing market is showing signs of recovery, but analysts say this could put further interest rate cuts in jeopardy.
House prices have increased by 1.3 percent nationally so far this year, but Perth is well ahead of the pack with a 2.4 percent increase.
The city’s median house price is now 3 percent higher than a year ago.
Commsec chief economist Craig James said the Reserve Bank’s decision to cut interest rates in December increased buying activity, especially in WA.
The Reserve Bank cut the cash rate a quarter of a percentage point to 3 percent in December and has delivered 1.74 percentage points in cuts since November 2011.
That had prompted increased activity amid homebuyers nationwide, but Mr James said WA’s economy had compounded the increase.
“Given the strength of the WA economy it makes sense that Perth is leading the way on home price,” Mr James said.
He expected the revival to continue throughout 2013 and forecast the median house price to rise by 22-3 percent nationally.
If the revival continued at the current rate, Mr James said it could force the Reserve Bank to rethink any plans for future interest rate cuts.
“If demand for homes continues to lift over January, pushing up prices, the Reserve Bank will shelve and plans to cut rates,” he said.
The positive activity this month follows a strong December quarter in WA’s housing market; the Real Estate Institute of WA found the median house price rose from $480,000 at the end of September to $495,000 at the end of the year.
However REIWA president David Airey said that could be attributed to more higher-priced properties changing hands.
“Overall sales increased by 4 percent in the quarter with increased activity in the higher price ranges. We have recorded more activity in the $600,000 to $700,000 ranges as well as homes over $800,000,” Mr Airey said.
Perth’s western suburbs recorded the biggest spike in activity, with sales jumping 57 percent on the September quarter.
The increased activity has resulted n the number of selling days dropping from 71 to 62 for the quarter.
Treasurer Troy Buswell said a 28 percent increase in the number of Western Australians accessing the first Home Buyers Grant last year was ‘clear evidence’ the housing market was gaining strength."

"Rebound Areas in WA Offer Opportunities"

Here's another article. This one is more local. It was sourced from Smart Property Investment, and was written by Christina Zhou.

"Favourable market conditions offer ample opportunities for investors waiting to jump into property in WA, especially in ‘rebound areas’, according to RE/MAX WA managing director, Geoff Baldwin.
Some semi-regional and areas just outside of Perth offer terrific value, especially from a positive geared point of view, Mr Baldwin told Smart Property Investment.
“Mandurah and Bunbury are two areas that have suffered quite badly during the downturn over the last four years or so,” Mr Baldwin said.

“It has left it in a position where there is still high rental demand. However, the prices at the moment are still such that you can get some very good buys.”
He explained that it is often the “rebound areas” that offer the best opportunities.
In the metropolitan areas, Mr Baldwin pointed to Armadale as a good investment opportunity as the area is undergoing rejuvenations.
“They are knocking over the old houses and building new villas and so forth. [There are] some very good values there,” he continued.
Although prices, rental returns and low borrowing costs are currently ideal, property investors need to act quickly if they are to take advantage of WA property market, Mr Baldwin said.
“Fixed interest rates are as low as they have been for several years and are predicted to go lower, massive rental demand is seeing returns increasing almost weekly and, although stock is beginning to diminish, there is still some great value available in the WA market”, Mr Baldwin said.
“For the first time in years we are able to offer positive geared properties whereby the rental income will cover the costs after tax for many investors, so people have the opportunity to get into the market without it being a drain on their income.”
Mr Baldwin said he has seen his recent workshop numbers triple what they were a year ago and increased demand for their off-the-plan developments, which he attributes to the advantage of buying in today’s market and settling in an improved market.
“As stock continues to decrease, there will obviously be less choice and, hence, upward pressure on prices. People considering investing in property should take action sooner rather than later”, Mr Baldwin said."