"Interest rates kept on hold again"

Hi Followers

Please read below:

Some mortgage holders may be breathing a sigh of relief. Others may now have to wait a little bit longer before they can buy that dress that want.

Whether you were expecting an interest rate rise or a cut this month, there was lots of speculation to support both possibilities. The booming mining sector and the strong Aussie dollar indicated rates could rise. But the struggling manufacturing sector and the volatile sharemarket could have seen rates dip.

However, the Reserve Bank of Australia (RBA) has kept the cash rate at 4.75 per cent, where it's been since November 2010. Governor Glenn Stevens acknowledged that the economy is going through quite a confusing period.

"Conditions in global financial markets have been very unsettled over recent weeks, as participants have confronted uncertainty about both the resolution of sovereign debt problems and the prospects for economic growth in Europe and the United States," Stevens says.

"Some temporary impediments that had contributed to a slowing in growth in some countries over recent months, such as the supply-chain disruptions from the Japanese earthquake and the dampening effects of rising commodity prices are lessening. But the uncertainty and financial volatility is reducing confidence and may result in more cautious behaviour by firms and households in major countries. A number of forecasters have scaled back their global growth estimates over the past couple of months."

Mortgage Choice spokesperson Kristy Sheppard says the RBA's decision is positive news for investors.
"I think sanity has prevailed, that's for sure," she says.

"The RBA knows times are challenging for many consumers, so the bank has reacted. The longer interest rates remain stable, the more positive flow-through there is, and that flows onto the housing market. Owners will see more return to growth and buyers don't have the shadow of repayment increases, so there's a positive there as well."

However, she adds an interest rate cut is "quite unlikely" down the track, due to the continuing mid-term pressures of inflation and the mining boom.

This information was gathered from:
http://apimagazine.com.au/api-online/news/2011/09/interest-rates-kept-on-hold-again

DEB BRADY
0405570903

COMING UP THIS WEEK

Hi Followers

Coming up this week...

1. New York inspired apartment closing to transport and shopping
2. Ultra contemporary 'Groovy' North Fremantle home

To register your interest please contact Deb Brady on 0405 570 903 anytime.

DEB BRADY
0405570903

For Sale 29 Florence Street, Cottesloe

Hi Followers

I want to add some wording in the last sentence, it will now please read: Accommodation is ample with 4 large bedrooms, a selection of upstairs & downstairs living areas, open plan living, large games/activity room or studio & several private courtyards for outdoor entertaining.

ACCOMMODATION: 4 bedrooms, 2.5 bathrooms, home office, open plan living kitchen and meals, large games/studio room, several outdoor courtyards, double secure lock up garage

For Sale-Offers closing 27th September 2011

For further information or to arrange a private inspection, please call Deb Brady on 0405 570 903 anytime.

DEB BRADY

0405 570 903

"Why rents are likely to increase"

Hi Followers

I found this article that I thought I'd post:


There's always been the great debate between capital growth and rental yield. It's often been argued that the higher the capital growth, the lower the yield, and the lower the capital growth, the higher the yield. But given the current economic climate, it's difficult to know which one investors should be focusing on.

While capital cities haven't delivered great gains of late, rents are likely to increase across the board, even for those who still prefer to buy in a capital city, according to Jane Slack-Smith of Investors Choice.
"Affordability is going to be the key driver," she says.

"That will mean we're going to see a move from capital growth being a fundamental of property investors' purchasing criteria to seeing more of an importance on yield. We'll see an increase in yield, mainly on the fact that people can't afford to buy their own property. They'll need to rent so there will be an increase in demand."

Slack-Smith also believes it's becoming more common for people to buy investment properties in cheaper areas, while they continue to rent in capital cities.

On the other hand, author and property millionaire Jan Somers says rental yields in capital cities are actually falling over time, but investors should do their research before they buy a property with a higher rental yield.
"In general, they won't have a very good capital growth," she says.

"When you have high yield it's usually high maintenance and high turnover."

Terry Ryder of hotspotting.com.au argues plenty of areas around Australia are increasing in value - the problem is that investors are looking in the wrong spots.

"The general media line is that prices are flat or falling, but they're talking about capital cities," he says.
"They're ignoring the regions where prices are growing quite strongly."

He lists Gladstone, the Surat Basin, Newcastle and Hunter Valley as the strong performers and says these areas will have both growth and increasing rental yield, as more people move into the areas. He also likes Bendigo and Ballarat in Victoria and Port Augusta and Whyalla in South Australia.
"People should always look for good returns," he says.

"If you can get beyond the fixation of a capital city and buy in the right region, you'll get strong capital growth over the medium to long term and the rent at least pays for the property."

This source of information was gathered from:
http://apimagazine.com.au/api-online/news/2011/08/why-rents-are-likely-to-increase

DEB BRADY
0405 570 903