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7 Feb 2012 - Reserve Bank Interest Rate Announcement

In its first meeting of the year, the Reserve Bank has kept interest rates on hold today.

Many economists had bet the Reserve Bank would cut rates by 0.25 per cent due to worries about the economic situation in Europe. However, rates will remain at 4.25 per cent.

"Today's decision leaves the gate open for the Reserve Bank to cut rates should the situation in Europe sour," says Domain property expert Carolyn Boyd. The move follows back-to-back rate cuts in November and December last year.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says although rates have remained on hold today, mortgage holders might still be able to win themselves a rate cut by shopping around for a better deal from lenders. Some lenders are offering more than 0.9 per cent off their standard variable rate for borrowers who ask.
"Keep in mind what it might cost you to switch though," Boyd says. "While borrowers with new loans may no longer be liable for early exit fees (also called delayed establishment fees), people who took out their loan before July 1 last year could still be charged an exit fee by their lender. The ban on exit fees only applies to loans taken out since July 1, 2011. There are also other costs associated with refinancing such as government charges to discharge and register a mortgage."
However, securing a cheaper rate cut from another institution may mean you can recoup the amount you have to spend to refinance quite quickly, or you may be able to use the cheaper offer to negotiate a better deal with your existing lender.
Further details on what the decision to keep interest rates at 4.25 per cent means to you and the Australian property market will be outlined in this week's Domain Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.

6 Dec 2011 - reserve Bank Interest Announcement

The Reserve Bank has cut interest rates by 0.25 per cent.

The 25 basis point fall comes on the back of a similar cut last month. The reduction is good news for people paying off a mortgage. "This will put an extra $60 into the pockets of borrowers each month," says Domain property expert Carolyn Boyd.

The official interest rate is now 4.25 per cent.

Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says, coupled with last month's cut, the drop represents a double windfall for borrowers because if they can keep their repayments at the same level they will be able to pay down their mortgages faster.
"It's a smart idea to keep your repayments at the same amount as you were paying before this cut, and the one on Melbourne Cup day," she says. "That way you can pay your mortgage off sooner but have no less money in your pocket than you did last month. There's plenty to gain here with no extra pain."
Many lenders don't automatically readjust repayments when rates are cut, meaning borrowers often have to simply sit back and watch their loan shrink faster when rates fall.
Further details on what the decision to decrease interest rates to 4.25 per cent means to you and the Australian property market will be outlined in this week's Domain Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.

6 Dec 2011 - reserve Bank Interest Announcement

The Reserve Bank has cut interest rates by 0.25 per cent.

The 25 basis point fall comes on the back of a similar cut last month. The reduction is good news for people paying off a mortgage. "This will put an extra $60 into the pockets of borrowers each month," says Domain property expert Carolyn Boyd.

The official interest rate is now 4.25 per cent.

Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says, coupled with last month's cut, the drop represents a double windfall for borrowers because if they can keep their repayments at the same level they will be able to pay down their mortgages faster.
"It's a smart idea to keep your repayments at the same amount as you were paying before this cut, and the one on Melbourne Cup day," she says. "That way you can pay your mortgage off sooner but have no less money in your pocket than you did last month. There's plenty to gain here with no extra pain."
Many lenders don't automatically readjust repayments when rates are cut, meaning borrowers often have to simply sit back and watch their loan shrink faster when rates fall.
Further details on what the decision to decrease interest rates to 4.25 per cent means to you and the Australian property market will be outlined in this week's Domain Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.

1 Nov 2011 - Reserve Bank Interest Rate Announcement

The Reserve Bank has cut interest rates by 0.25 per cent.

The 25 basis point fall is the first movement in rates since Melbourne Cup Day 2010 and has been widely tipped since lower-than-expected inflation figures were released last week.
The 25 basis point reduction is good news for people paying off a mortgage.

"This fall in rates will be greatly appreciated by households as it will put an extra $60 into their pockets each month," says Domain property expert Carolyn Boyd.

The official interest rate is now 4.5 per cent. Until today, mortgage holders on variable interest rates were being charged a standard variable rate of about 7.83 per cent by their lenders.

Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says it's a good idea for mortgage holders to keep paying their loans at the same rate they have been for the last year, and not take advantage of the opportunity to decrease their repayments.
"You'll still get any rate cut your lender passes on, of course, but if you keep your repayments at the same level, you will pay your loan off sooner and build a buffer for any unexpected rough spots."
Today's rate cut will provide a welcome boost to the property market, which has slowed in the last year and remains subdued in most parts of Australia. It could also improve the confidence of potential first home buyers.
Further details on what the decision to decrease interest rates to 4.5 per cent means to you and the Australian property market will be outlined in this week's Domain Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.



4 Oct 2011 - Reserve Bank Interest Rate Announcement

Against the backdrop of concerns over the global economy and weak consumer spending at home, the Reserve Bank opted to keep interest rates on hold today 4.75 per cent.

Many economists have tipped the Reserve Bank will now stay on the interest rate sidelines for at least a year and that if there is any movement, it will be down - but only if there is a sudden major shock to the economic outlook.

"Today's decision will certainly be welcomed by those with a mortgage," says Domain.com.au property expert Carolyn Boyd. "An increase in rates would have added unwelcome pressure for people trying to pay their mortgage. Households are becoming increasingly penny conscious - as can be seen by the recent spike in savings - and it really is true that every dollar counts."
Rates have been on hold since the Reserve Bank surprised borrowers with an increase on Melbourne Cup day last November.
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.
The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.
Further details on what the decision to keep interest rates at 4.75 per cent means to you and the Australian property market will be outlined in this week's Domain.com.au Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.

7 Sep 2011 - Reserve Bank Interest Rate Announcement

Worried mortgage holders had some good news today - the Reserve Bank kept interests rates on hold at 4.75 per cent for another month.

Although the decision was widely expected, there has been plenty of speculation recently about both a rate rise, and a rate cut, leaving consumers confused about which way rates were headed this month.

"It's a good news day for households with a mortgage," says Domain.com.au expert Carolyn Boyd. "Although retail sales figures had a bit of a jump last week there are plenty of factors to keep the Reserve Bank on the sidelines, including a slow housing market and continued global uncertainty."
While there has been talk of a rate cut, fuelled by many lenders cutting their fixed interest rates for mortgages, a drop is no certainty. The next few months will really keep everyone guessing as to whether we are in for a cut or an increase - or more of the same.
Rates have been on hold since the Reserve Bank hit borrowers with a surprise increase on Melbourne Cup day last November.
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.
Further details on what the decision to keep interest rates at 4.75 per cent means to you and the Australian property market will be outlined in this week's Domain.com.au Property Newsletter. If you are not already subscribed to our FREE weekly newsletter, click here to subscribe.

10 Aug 2011 - Double interest rate cut tipped for September

The clouds of economic gloom gathering over the US and Europe could have a silver lining for Australian borrowers - a double rate cut is now predicted for next month.

After global shares sustained $2.5 trillion losses last week and US government had its credit rating cut by Standard & Poor's late on Friday (US time), investors are now pricing in a 50 basis point cut by the Reserve Bank when its board meets on September 6, according to Credit Suisse data.

A move of that size would lop the official cash rate from 4.75 per cent down to 4.25 per cent and save the holder of a $300,000 mortgage about $93 a month if passed on in full by the commercial lenders.

Advertisement: Story continues below Until a little over a week ago, most commentators had been tipping the next rates move by the central bank to be an increase following sharply higher inflation figures in the June quarter. That sentiment took a 180-degree turn during last week's global sharemarket rout, a slide that looks like continuing into this week.

In early trading, local shares had shed another $27 billion in value - before a modest bounce - adding to the $100 billion lost last week.

Russell Jones, Westpac's global head of interest rate strategy, said Europe's debt woes and developments in the US including the country's first-ever debt downgrade, would be on the RBA's radar.

"During the GFC, it was very willing and able to cut rates aggressively when things deteriorated," he told BusinessDay. "If it continues to get worse, they could well pull the trigger."

Westpac broke ranks with other major Australian banks last month by predicting rate cuts by the end of the year, and a total of four by the end of 2012. ANZ, for instance, forecast the RBA would lift rates at its board meeting last Tuesday.

The prospect of lower interest rates may help shore up the real estate market in Australian capitals. The auction clearance rate remained steady in Sydney and Melbourne over the past weekend, at 56.2 per cent and 58.1 per cent, respectively.
RBA view

Investors this morning were betting that the trigger will be pulled, with the equivalent of two typical moves of 25 basis points likely to be wrapped into the one meeting in September. In a year's time, the cut may be triple the size, with markets tipping the RBA's cash rate will be slashed to 3.25 per cent - not far above the 3 per cent 50-year low reached during the depths of the global recession in April 2009.

In recent comments on interest rates, the RBA board has stuck with its cautionary language. The bank said that the "current mildly restrictive stance of monetary policy [was] appropriate", and that although "year-end inflation was high", it was most likely caused by "extreme weather events earlier in the year".

But the RBA said measures that better indicate the trend in inflation had "begun to rise over the past six months after declining for the previous two years".

"While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the board remains concerned about the medium-term outlook for inflation," the RBA said last week.

Commonwealth Bank chief economist Michael Blythe was less confident of a rate cut, saying there was "a bit of divergence" between interest rate futures and other views on rate moves.

Mr Blythe said that while the odds had shifted towards a cut in the last few days, a move downward was still "a long way off".

"A survey last Friday showed [most economists] expect no change at the September meeting. The RBA also signalled on Friday that a rate rise at some point was more likely than a cut. They refused to endorse market pricing for rate cuts in their forecasting assumptions," he said.

5 Jul 2011 - Reserve Bank Interest Rate Announcement

Reserve Bank Interest Rate Announcement

In welcome news for borrowers, the Reserve Bank has decided to keep rates on hold at 4.75 per cent.

The move comes on the back of recent figures showing Australia's housing market remains soft, and the number of jobs advertised has fallen.

"This is great news for mortgage holders," says Domain.com.au property expert Carolyn Boyd. "With the new financial year rolling around, many householders are facing increases in other expenses such as power and gas, and the last thing they need at the moment is to have to pay more interest."
Those who can afford to do so though, should always pay more off their mortgage, Boyd says, as it provides a buffer against further rate rises, and can help to free households of mortgage debt sooner.
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.
The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.
Further details on what the decision to keep interest rates at 4.75 per cent means to you and the Australian property market will be outlined in this week's Domain.com.au Property Newsletter.






7 Jun 2011 - Reserve Bank Interest Rate Announcement

The Reserve Bank has opted to keep rates on hold at 4.75 per cent.

The move comes on the back of recent figures showing Australia's economy shrank in the first three months of this year, due to the catastrophic Queensland floods.

Economists are still tipping a rate rise this year, but not until August, or possibly later.

"Mortgage holders should view today's decision as a reprieve," says Domain.com.au property expert Carolyn Boyd. "However, the downturn in the economy is expected to be short term, which could still point to rate rises to come as things begin to improve."
Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.
If you're hoping to pay more off your mortgage, now is a good time to do it, Boyd says.
The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.
Further details on what the decision to keep interest rates at 4.75 per cent means to you and the Australian property market will be outlined in this week's Domain.com.au Property Newsletter.

10 May 2011 - Put out the welcome mat for buyers

A tidy, inviting property will stick in the minds of house hunters.
At open for inspections, a well-presented property will connect with buyers.
‘‘Light and bright. Loved the privacy but not enough north sun for me.''
These reflections by Judie Litchfield describe her first viewing of the residence she bought recently in Sandringham. They are typical of the intuitive responses of buyers everywhere.
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Often, first impressions are not crystallised ideas. But that does not mean a firm decision will not follow. The best way for a vendor to create a good impression on an open day is to plan — and work— before opening the doors.
Ray White St Kilda residential sales consultant Brendan Allen says a well-presented property helps achieve the premium price.
For vendors, that means action. Clean, tidy and store unnecessary belongings. Mend damaged fittings and surfaces.Make sure the air is fresh and pleasant and allow daylight to shine through the rooms.
In a weekend, buyers might see 20 properties that meet their criteria for location and facilities. Mr Allen points out that buyers know the details about a property well before they arrive.
‘‘Buyers first see the property by means of advertising in the paper or on the internet,'' he says. ‘‘They see the photos, they see the dimensions and they come because it's two bedrooms or three or four.''
With the criteria fixed, the care taken with presentation might be the factor that makes a property stick in a buyer's mind.
The Ray White website talks of ‘‘creating a welcoming feel'' and making ‘‘a warm and relaxed atmosphere''. The site gives plenty of tips to vendors on how to create the atmosphere: fresh flowers, the aroma of brewed coffee, music and soft lighting.
‘‘What we try to do is make the home as memorable as possible,'' Mr Allen says. Event planner Nadia Kentera has organised events for Melbourne businesses for 13 years. She is not surprised subtleties such as soft music and candles are advised at open days.
She aims to engage in the same way at her events. ‘‘From the moment someone walks in, it's the feel, the whole experience,'' Ms Kentera says.
‘‘It's going back to the senses. You've got to be able to emotionally connect with all the senses — whether it's the light or sound, it's the atmosphere you create.''
She says attention to detail is very important. For a guest at a corporate function, that means they have a good time; for a buyer at an open day, that means they can picture themselves living in the house in the years ahead.
While there are differences between the industries, Ms Kentera has advice for vendors about to open their houses to the public.
‘‘Make sure people can focus on the house,'' she says. She suggests minimising the furniture and arranging it so people can move around easily. De-cluttering should include removing personal photos.
‘‘People tend to get too obsessed with photos. They take away the focus—they're a diversion—from the house.''
As she was buying her Sandringham home,Ms Litchfield was selling two properties. One was tenanted, so she had little control over the way it was presented. For the other, she spent days cleaning, polishing and trimming the garden.
‘‘I consciously took my own taste out of it. I moved things around — added, took away — and decluttered. I made sure that everything looked as though it was meant to be there,'' she says.

3 May 2011 - Reserve Bank Interest Rate Announcement

Mortgage holders got what they were hoping for today - a stay on interest rates.

The Reserve Bank decided to keep rates on hold at 4.75 per cent despite recent news that inflation was running higher than expected.

"It's great news that the Reserve Bank has decided to wait and see whether the higher inflation is temporary thanks to recent disasters and seasonal factors, rather than attacking it with an interest rate rise," says Domain.com.au blogger Carolyn Boyd. "Households are already facing increased living costs and will be grateful they don't have to dig even deeper into their pockets - for another month at least."

The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.
Boyd says mortgage holders should always try to pay extra off their loan to give themselves a buffer in case rates do rise. You can wipe 17 months off the average new mortgage and save $30,085 in interest by paying an extra $60 per month, or about the equivalent of a 0.25 per cent rate rise.
For details on what the decision to keep interest rates on hold at 4.75 per cent means for the market, visit the Domain.com.au news section for further analysis.

6 Apr 2011 - Outlook for Home Values Subdued

Residential property values are likely to remain subdued for some time and conditions favourable for prospective homebuyers, a leading property data group says.

The value of Australian homes remained steady in February despite higher interest rates and a summer of natural disasters, according to the latest RP Data-Rismark Home Value Index.

Capital city home values were flat, while in regional areas property values rose 0.5 per cent seasonally adjusted.

"When you consider that Australian inflation was 2.7 per cent in the year to December 2010, in real terms Australian residential property values have been declining, which is good for prospective buyers," RP Data senior research analyst Cameron Kusher said on Thursday.

Advertisement: Story continues below Mr Kusher said the data indicated that capital growth was likely to remain very subdued for the time being.

"Auction clearance rates have been a little weak, the number of homes advertised for sale is at the highest level it has been since we started collecting this data..." he said.

In addition, the margin by which vendors have to discount their properties was climbing again after reaching a plateau in recent months.

"Conditions are certainly in favour of prospective investors," Mr Kusher said.

"The large stock of homes for sale should afford potential buyers increasing scope to negotiate on price and get the best possible deal."

Over the 12 months to the end of February there were modest capital gains in Sydney (3.3 per cent), Melbourne (2.5 per cent), Canberra (0.7 per cent) and Adelaide (0.6 per cent).

The resource states of Western Australian and Queensland experienced declines, with a correction in Perth where values fell 4.1 per cent, and Brisbane, down 5.3 per cent.

"Recent RBA analysis also shows that repossessions have been highest in Perth and South-East Queensland, which helps explain the poor performance seen in these states," Mr Kusher said.

Perth home values are 0.7 per cent below their December 2007 levels.

5 Apr 2011 - Reserve Bank Interest Rate Announcement

Mortgage holders were given a boost today when the Reserve Bank decided to keep interest rates on hold.

While the move is hardly a surprise, it will still be welcome news for people paying off a mortgage.

"There's always that element of doubt about whether rates will go up or not, so it's nice to have a hold confirmed," says Domain.com.au blogger Carolyn Boyd.

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.

The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.
Mortgage holders wanting to pay down their debt faster should take the opportunity to pay a little more off their loan now. On a new 25-year $370,000 mortgage, if you paid an extra $60 per month, or about the equivalent of a 0.25 per cent rate rise, you could clear your mortgage 17 months sooner and save $30,085 in interest.
For details on what the decision to keep interest rates on hold at 4.75 per cent means for the market, visit the Domain.com.au news section for further analysis.

1 Mar 2011 - Reserve Bank Interest Rate Announcement

It was a case of steadying the ship as expected when the Reserve Bank met today and decided to keep interest rates on hold at 4.75 per cent.

The move comes on the back of comments by the Reserve Bank Governor Glenn Stevens last month that rates would stay on hold in the near future.

"Mortgage holders will be breathing a sigh of relief," says Domain.com.au blogger Carolyn Boyd. "Even though today's decision looked like a forgone conclusion, there is always an element of doubt."

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.

The official interest rate is currently 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.

By keeping rates on hold the Reserve Bank has presented borrowers with an opportunity to beat their lenders at their own game, and pay more off their mortgages before the next rate rise, which is now expected to be quite late in the year.

If you want to keep up to date with the latest property news subscribe to our FREE weekly property newsletter.

23 Feb 2011 - It Pays to be Street Wise

Knowledge of your neighbourhood is vital for working out your house's value.

If a house or apartment sells for a high price down the road, the optimistic side of human nature jumps to the fore. Overnight, the neighbours will assume that their houses, too, are worth the same amount, even though such price expectations can fly in the face of reality.

"A property is worth whatever a buyer is prepared to pay for it, so predicting value can be a very difficult and vexing issue," says Robert Larocca, the communications manager of the Real Estate Institute of Victoria.

Real estate price rises are pushed by demand, which can be an erratic thing, affecting different properties — even those in the same street — in different ways. Unlike shares traded on the sharemarket, no two houses are alike. Properties are also expensive, compared with other asset classes and most change hands infrequently.

Advertisement: Story continues below But home buyers and investors who track price movements and other property data are in a competitive position. It's only by doing this research — or by engaging a research firm to do it for you — that you can identify trends and "value" opportunities and then buy or sell before others do.

If you intend to sell, your council rates notice also offers a professional valuation. The notice gives a capital improved value figure for the property and a figure for the site or land value. They can be very conservative though.

Mr Larocca says council valuations can be up to 18 months out of date and it is vital to follow the current market in your local area to see what else is for sale.

"If you are selling a three-bedroom Californian bungalow in Coburg and there are 15 of the same properties for sale at the same time, that will have an impact on the value of your home," he says.

The managing director of Keyhole Property Investments, Melissa Opie, has bought hundreds of properties in her role as a buyer's advocate in Melbourne.

Ms Opie says home owners can be unaware of the special reasons why certain properties sell for higher-than-expected prices. She gives the example of a property owner who recently paid a premium to buy the house next door. The buyer planned to allow his elderly parents to move in next door in order to save on nursing-home fees.

"Another owner in the same street may not know this but he sees the price paid and thinks, 'We are rich now'," Ms Opie says.

Wakelin Property Advisory's Monique Sasson Wakelin, who also works as an advocate, says direct comparison is the best way to get an understanding of values.

"Look at properties sold in the same area that have the same level of accommodation, the same level of renovation and similar land sizes," she says. "You can do it yourself [using auction results published over a three to six-month period] or you can subscribe to one of the data companies that will do a comparable sales analysis for you."

Real estate agents in Victoria are required by law to provide vendors with an estimated selling price.

Mr Larocca says agents are not allowed to underquote or overquote this figure. He advises vendors to question agents about the process that has been used to determine the estimated price.

"This time last year, the expectations of agents and vendors were frequently exceeded at auctions," he says. "You can see that in the reserves, which were consistently beaten by multiple bidding parties. That is not the case this year."

Buyer's advocates are paid a fee for their services and some offer advanced valuations.

Ms Opie conducts valuations for those who want to increase their bank borrowings to fund the purchase of additional properties.

She says she will revalue an investor's existing properties, including commercial properties. The investor uses this information to decide whether to ask a bank for valuations from a registered valuer to underpin a new loan.

"It's like visiting the GP before you see the specialist," says Ms Opie.

23 Feb 2011 - Home Loans:To Fix or Not to Fix? Interest Rates

Interest rates are on hold for now but economists expect the next move to be up.

Home buyers are turning to fixed-rate mortgages in response to the steady rise in interest rates last year and predictions that rates will go higher this year.

Mortgage broker AFG publishes a monthly mortgage index, which shows that the proportion of fixed-rate mortgages increased from just 2 per cent of its total new lending at the start of last year to 3.4 per cent in July and then 12.6 per cent in December.

With one-, two- and three-year fixed rates about the same level as (or lower than) variable rates, borrowers have little to lose by opting for fixed rates.

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However, they need to recognise that fixed-rate loans have different characteristics to variable-rate loans and may not suit their needs (see box).

The general manager of sales at AFG, Mark Hewitt, says the rise in the popularity of fixed-rate home loans reflects increasing consumer concern about the future of interest rates.

For another big broker, Mortgage Choice, the level of demand for fixed rates has been even higher, reaching 15.2 per cent of its approvals in December. A spokeswoman for the group, Kristy Sheppard, says it was the biggest take-up of fixed rates in almost three years.


''Much has been said about the cautious approach Australians are taking to their finances and our figures reflect this,'' Sheppard says.

The Reserve Bank cash rate reached a low point of 3 per cent in April 2009 and started rising six months later. Since then it has gone up to 4.75 per cent, with the most recent change last November.

A trend noted by the Reserve Bank has been the marked increase in the range of interest rates offered for similar products. In the RBA's view, this may reflect the move by some lenders to compete on non-price criteria.

Whatever the reason, it makes it more important than ever for borrowers to keep track of rate changes.

One-year fixed rates start at 6.74 per cent for the Better Option Fixed Rate Home Loan. Lenders with one-year rates under 7 per cent include NAB, Gateway Credit Union, CUA, Homeside, QuickDirect, Laiki Bank, Heritage Building Society, HSBC and RAMS.

Two-year rates start at 6.99 per cent for the AMO Fixed Rate Home Loan and RESI Pro (Fixed). Lenders with two-year rates under 7.2 per cent include Bank of Queensland, Heritage, HSBC, Police Credit, Teachers Credit Union, Nationwide Mortgage, Gateway, IMB, MECU and Newcastle Permanent.

Three-year rates start at 7 per cent for Better Option. Lenders with three-year rates under 7.3 per cent include AMP, ANZ, Citibank, CUA, Heritage, HSBC, MECU, Teachers and IMB.

The variable home loan rates offered by the big banks start with NAB at 7.67 per cent. ANZ and St George's variable mortgage rates are 7.8 per cent, Commonwealth's is 7.18 per cent and Westpac's is 7.86 per cent.

Many borrowers who have sourced their loans from a big bank will be receiving a package discount of about 0.6 of a per cent. A number of smaller lenders also offer these discounts.

So, how will rates move in 2011?

ANZ's forecast is for the Reserve Bank's cash rate to rise from the current level of 4.75 per cent to 5.5 per cent by the end of this year. Commonwealth Bank also says the cash rate will reach 5.5 per cent by year end. Westpac is forecasting only one rate rise this year (but not saying how big it thinks that rise will be). NAB is forecasting 5.25 per cent by the end of the year.

If the economists at the big banks are right, the worst-case scenario for borrowers this year is Reserve Bank rate increases of 0.75 of a per cent - then there is the possibility that lenders will add something on top.

One issue to consider is how lenders will respond to further Reserve Bank increases in the cash rate this year. Canstar Cannex reported that only five out of 99 lenders it surveyed kept their variable home loan rate increases at the levels set by the Reserve Bank last year.

The rest all increased by more. In November, when the Reserve Bank put up rates by 0.25 of a per cent, the average home loan rate increase was 0.32 of a per cent. A home owner with a $300,000 mortgage on a 25-year term would pay an extra $150 a month if rates went up by 0.75 of a per cent to 8 per cent.

Repayments on a $500,000 loan would go up by $245 a month.

With fixed rates for two- and three-year terms so close to current variable rates, fixing is a low-risk strategy.

Borrowers have to pay a new establishment fee but may end up with a fixed-rate loan that is lower than the variable rate they are paying now.

If rates do move this year they will be ahead.

Fixed rates are different

Borrowers need to remember that, generally, fixed-rate loans are inflexible. Monthly payments cannot be varied, there is no redraw and no offset.
To avoid problems that might arise from this inflexibility, borrowers should discuss a split loan (part variable and part fixed) with their broker or lender. The fixed portion will give them
protection from rate increases and they will be able to make additional payments into the variable portion.
Being able to make extra repayments is an important facility. According to ING Direct's Financial Wellbeing index, 48 per cent of home loan borrowers make extra repayments on their loans
These payments serve two purposes: they create a buffer that can be called upon in emergencies and they speed up the repayment of the loan. Even small amounts help; a monthly payment of $1996 on a 30-year $300,000 loan rounded up to $2050 will cut $25,000 off the interest bill.
http://news.domain.com.au/domain/home-investor-centre/home-loans-to-fix-or-not-to-fix-20110216-1avyl.html

2 Feb 2011 - Reserve Bank Interest Rate Announcement

In its first meeting of the year today the Reserve Bank opted to keep rates on hold at 4.75 per cent.

The decision comes on the back of economic data out last week showing inflation was running lower than expected.

"This is a good start to the year for mortgage holders," says Domain.com.au spokesperson Carolyn Boyd. "It's likely there will be rises later in the year, so this presents a window of opportunity for people with housing debt to pay a little extra down."

Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average Australian mortgage.

The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.

Today's decision will be a boost to the opening of this year's property market, which is just starting to ramp up now that the summer holidays have officially ended.

18 Jan 2011 - Ten tips to renovating wisely

Renovating can be a mine-field and costs can vary widely so chose carefully between using a builder or an architect to run the show.

1. Look closely at council's guidelines to see what you are allowed to do. For example, you may be able to add an upper bedroom in a terrace if you don't interfere with the roof form,

2. Source building materials at auction houses or online.

3. Shop around. If a product seems excessively expensive, you may be able to find a more affordable alternative made with similar materials.

Advertisement: Story continues below 4. Don't underestimate the site's potential for inspiration. For instance, if you have a magnificent tree, keep it and make it a focus.

5. Don't be afraid to blend old with new. The older parts of a building can add character.

6. A prefabricated structure can save on building cost.

7. If building a getaway, costs will escalate if it's in a fire zone.

8. When buying, consider access for builders.

9. Beware steep sites as excavation costs are exorbitant.

10. To contain the budget, keep joinery simple.

18 Jan 2011 - Investment properties: the income, capital gain trade-off

How to work out allowable tax deductions for investment properties.

In most cases residential property as an investment does not produce a great deal of income, and often after taking into account interest and other costs produces a tax-deductible loss. What most investors hope for from residential property is a large increase in value so they can produce sufficient profit to make the investment worthwhile.

Q. When you are selling an investment property is the amount you have paid in interest and government taxes taken into account when calculating capital gains tax?

A. The effect of interest and government taxes on the amount of CGT payable will depend on whether the investment property was used for rental purposes, or has been held to be sold at a profit. In this latter situation interest costs and other holding costs such as rates and taxes will be added to the purchase cost of the property to arrive at the capital gain.

Advertisement: Story continues below When the investment property has been used for rental purposes the interest on loans taken out to purchase the property, and the rates and taxes and other holding costs such as agents fees, will have already been claimed against the rent received. In this case these costs are not taken into account when calculating the CGT payable.

7 Dec 2010 - First Home Owner Grant changes

In what is good news for first home buyers intending to buy their first property, the NSW Government has announced that the First Home Owner Grant cap will be increased to $835,000 from 1 January 2011.
The $835,000 cap will apply to applications where the commencement date of the eligible transaction is on or after 1 January 2011. The commencement date of the eligible transaction is the date of the contract to purchase or build a home or, for a builder, the date the foundations commenced to be laid.
Applicants who purchase or build a home which has a total value of more than $835,000 are not be eligible for the grant.
The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap.
For eligibility criteria and other First Home Benefits go to www.osr.nsw.gov.au/benefits/first_home

7 Dec 2010 - Reserve Bank Interest Rate Announcement

After a surprise interest rate rise on Melbourne Cup day, the Reserve Bank has delivered mortgage holders some relief today by deciding to keep rates on hold until at least February.

The decision comes on the back of economic data out last week showing that the growth in the Australian economy has fallen behind many of the world's advanced economies. Consumer data out last week also showed the biggest drop in retail sales since July 2009.

"Today's move is good news for mortgage holders who are adjusting to the higher rates imposed by last month's official rise coupled with the decision by several lenders to lift their own rates by quite a lot more," says Domain.com.au blogger Carolyn Boyd.

Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average Australian mortgage. The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.

Rates will now remain on hold until at least February, as the Reserve Bank takes a break in Janaury.

If you want to keep up to date with the latest property news subscribe to our FREE weekly property newsletter.

16 Nov 2010 - Positive side to negative gearing

My dad says I'm wasting my money on rent when it could be going into a mortgage and he's offered to lend me $35,000 for the deposit on a flat. However, anywhere I could afford to buy is nothing like as good as where I am renting. Any thoughts?

ANSWER Buy a flat and rent it out to someone else. Negative gearing could make this an even better investment than buying somewhere to live.

Advertisement: Story continues below These are ballpark figures but if you use dad's money to buy a $380,000 flat, you could let that for about $1600 a month.

A loan might cost about $2300 a month at current rates. Add in levies of, say, $300 a month and you're looking at a shortfall of $1000 a month.

If you can find that $250 a week from your current budget, the shortfall between rental income and outgoings is tax deductible.

A financially tough first year or two is a great investment in the future, as you get to live where you want, you've got a foothold in the property market and dad is happy. Talk to an accountant.

Jimmy Thomson
October 23, 2010
http://click.email.domain.com.au/?qs=e24f664cacc1fe8e8db46617977347599bc4fe92ff2e6509db944299c127768d

16 Oct 2010 - New "Super Pool" for Greystanes

SWIMMERS look like gaining a ``super pool'' that will replace the ageing Guildford, Merrylands and Wentworthville facilities.
Holroyd councillors last week voted to investigate building a super facility at Hyland Park, Greystanes, which they said would better serve residents.
The vote followed a council report last year that found the three pools cost Holroyd $2 million in losses annually.
Billed as an ``aquatic leisure centre'‘, the new facility would include a 50m outdoor pool, a 25m indoor one, spas and saunas, childcare and a carpark.

Cr John Perry, the former mayor, said Hyland Road Park would provide ample space for a bigger facility.
parramatta-advertiser.whereilive.com.au/news/story/super-pool-means-last-lap-for-guildford-merrylands-and-wentworthville/

5 Oct 2010 - Reserve Bank Interest Rate Announcement

Surprise as rates stay steady
news.domain.com.au/domain/real-estate-news/surprise-as-rates-stay-steady-20101005-165ip.html

20 Sep 2010 - Reserve Bank Interest Rate Announcement

RBA holds fire
news.domain.com.au/domain/real-estate-news/rba-holds-fire-20100907-14yzv.html

30 Aug 2010 - Daffodil Day

The team at TracyRoberts raised $140 for Daffodil Day!

23 Aug 2010 - Why the cash rate has remained at 4.5%

Australian consumers continue to dodge an interest rate hike as, in line with predictions, the Reserve Bank of Australia kept the cash rate steady at 4.5% this month. But why?

In its meeting minutes released late yesterday, the RBA reported the major news in the domestic economy had been that underlying inflation had continued to fall and was now below three per cent. Were it not for the effect of the rise in tobacco excise earlier in the year, CPI inflation would have remained below 3 per cent, the report said.


http://experts.realestate.com.au/buying/buying-news-why-the-cash-rate-has-remained-at-45

16 Aug 2010 - RSPCA Cupcake Day

We raised a total of $500 for the RSPCA Cupcake Day.

Rob and Tracy matched us dollar for dollar taking it to a total of $1,000!

3 Aug 2010 - Reserve Bank Interest Rate Announcement

Interest Rate Announcement
news.domain.com.au/domain/real-estate-news/no-change-for-rates-20100803-1149g.html

27 Jul 2010 - Homes worth more on a street than on a road

ADDRESSES containing the word "street" are worth $100,000 more than those ending in "road".
But people who live in avenues, esplanades or parades are doing as much as $400,000 better.

http://www.news.com.au/money/property/why-homes-are-worth-more-in-a-street/story-e6frfmd0-1225896548133

27 Jul 2010 - Investors continue to fill the gap

When June quarter property prices are released in late July and early August, it's very likely we'll see house price growth down significantly from the rates we saw in March and December. The figures probably won't show falling prices, but growth will be a lot closer to zero than it has been for well over a year.
http://www.investsmart.com.au/promostrip/images/Investors%20Returning.pdf?et_lpid=179680&et_cid=13557914&et_rid=680180053&Linkid=To+read+the+full+article+by+APM+economic+Matthew+Bell%2c+click+here

18 Jun 2010 - Depreciation - the forgotten tax deduction

Around this time every year the media turn their attention fleetingly to depreciation. Their favourite statistic is that ‘80% of people don't claim depreciation on their investment property'.
http://www.propertyupdate.com.au/articles/depreciation---the-forgotten-tax-deduction.html

18 Jun 2010 - RBA to leave rates on hold for "near term"

The RBA is expected to keep the official cash rate on hold until at least August, having moved rates back to more "neutral levels".
http://www.rebonline.com.au/breaking-news/3183-rba-to-leave-rates-on-hold-for-qnear-termq

18 Jun 2010 - More Benefits for More NSW Home Buyers

50% of Stamp Duty
http://www.homebuyer.nsw.gov.au/newly_built.html

18 Jun 2010 - First Home Owners Grant Changes

NSW New Home Buyers Supplement ends
The $3,000 NSW New Home Buyers Supplement finishes on 30 June 2010 and will not be available where the eligible transaction is dated after 30 June 2010.

First Home Owner Grant and First Home Plus continues
The $7,000 First Home Owner Grant and the exemption from duty of up to $17,990 under the First Home Plus Scheme will continue to be available after 30 June 2010.

http://www.osr.nsw.gov.au/benefits/first_home/

21 Oct 2009 - Sydney's median value has increased to $610,500

Demand for homes exceeds supply and this initially put a floor under property prices and has now translated to increasing values.
http://www.smartcompany.com.au/property-investor/20091021-latest-figures-show-our-housing-markets-are-on-the-move.html

9 Oct 2009 - Investors set to flood market

Almost 90 per cent of investors will purchase property in the next two years, a survey from PRDnationwide has found.
According to the results, 70 per cent of respondents would buy interstate and 66 per cent are looking for long-term capital growth
The survey of 764 investors found the majority are seeking a property priced between $300,000 and $450,000 which achieves a rental return of between 4 to 5 per cent annually.
www.rebonline.com.au/breaking-news/2683-investors-set-to-flood-market-survey

1 Oct 2009 - National values jumped almost 2%

According to RP Data-Rismark National Home Value Index, home values in Australia rose by an exceptional 1.9 per cent during the month of August. This brings cumulative capital growth in the first eight months of 2009 to a better than expected 7.9 per cent.

www.rpdata.com/press_releases/record_august_growth_in_home_values_despite_first_home_buyer_demand_winding_back.html

31 Aug 2009 - Seven months of growth.

Over the first seven months of the year Australian home values increased across every capital city, rising by 5.9 percent nationally, Sydney helped lead the way with 6.6 percent growth.
www.rpdata.com/press_releases/australian_residential_markets_continue_to_record_solid_gains_in_july.html

28 Aug 2009 - Buyer activity improves

Auction clearance rates remained above 80% in Melbourne and 70% in Sydney suggesting that vendors are setting realistic reserves on their properties. The high clearance rates can also be tied back to an increase in competition amongst buyers as market activity improves.
www.vision6.com.au/em/mail/view.php?id=1489710430&k=62b1562

18 Aug 2009 - Happy Christmas, GFC is over...and here's a rate rise

The Reserve Bank may raise interest rates by Christmas as it eyes an economic recovery, experts have warned.
The central bank confirmed today that it was only a matter of "when", not if, interest rates will rise as the economy rebounds.
However, providing some relief for hard-pressed homeowners, the RBA indicated that the rake hike may not materialise immediately, as the bank is wary of "choking off confidence and demand prematurely".
An immediate rate hike threatens to unravel a fragile consumer confidence - only recently buoyed by government stimulus cheques and a surprising resilience in the job market.
money.ninemsn.com.au/blog.aspx?blogentryid=445289&showcomments=true

17 Aug 2009 - The market bounces back

In the news this week all reports are that the property market has bounced back from the slowdown in 2008 and set for growth through the spring market this year.

The rebound in the property market can be attributed to a few key fundamental elements.

•Historically low interest rates
•Incentives for first homebuyers through government grants and bonuses
•Low supply of available property to purchase
•High rental yields attracting property investment and improved cashflow
•Steadily increasing population
www.propertyplanning.com.au/Newsletters/in_the_news_-_14_august_2009

8 Aug 2009 - Near 50 year low cash rate just 3%

The Reserve Bank of Australia decided to keep Australia's cash rate at a near 50 year low of just 3% when they met this week. In his statement the Reserve Bank Governor pointed to the fact that worldwide economic stimulus was helping the global economy to stabilise.
www.vision6.com.au/em/mail/view.php?id=1342119802&k=9cf520b#Paragraph_2

27 Jul 2009 - Good news for property investors!

Despite many forecasters having predicted a property crash over the last year, the major property markets around Australia, seem to have had a soft landing. In fact the lower end of the markets could almost be classed as booming and property values have risen strongly, making up much of the lost ground caused by the financial crisis.
www.propertyupdate.com.au/

20 Jul 2009 - Confidence remains positive

Recent data releases have continued to paint the domestic economy and residential property market in a relatively positive light. Consumer confidence has remained in positive territory the last two months, unemployment figures are lower than most expected, housing finance commitments continue to trend upwards and interest rates have remained at 45 year lows.
www.vision6.com.au/em/mail/view.php?id=1483228048&k=cefcd69

19 Jun 2009 - Slow recovery to 22% growth in 3 years

House prices could rise by as much as 22 per cent during the next three years, an economic forecaster says. "The conditions are ripe for a sustained recovery in residential property prices," according to BIS Shrapnel's Residential Property Prospects, 2009 to 2012, report.

"Low interest rates, solid growth in rents and housing shortages are evident in most markets. "However, the current economic malaise will mean confidence will only recover slowly during 2009-10."

"We expect rising confidence in the prospects for an economic recovery in 2010, so investors are likely to return in greater numbers, attracted by increased rental returns and low interest rates." BIS Shrapnel estimates Sydney's median house price at June 2009 to be $530,000, and predicts it will rise by mid-2012 to $630,000.
www.propertyplanning.com.au/Newsletters/in_the_news_19_june_2009

4 Jun 2009 - Interest Rates on Hold

Following the RBA's Board meeting this week it was announced as expected, that the cash rate would remain on hold at 3.0%. This was a predictable outcome given a number of positive data releases over recent weeks. In the RBA Governor's statement he noted that, "The prospect of inflation declining over the medium term suggests that scope remains for some further easing of monetary policy, if needed. -
www.rpdata.com

29 May 2009 - Healthy Increase

Home values continue to recover, recording a healthy 2.8% increase over the first four months of 2009
The RP Data/Rismark Australian Home Value Index out today confirmed that housing values around Australia rose by a healthy 2.8 per cent over the first four months to April 09—virtually wiping out the price falls seen in 2008 according to RP Data National Research Director Tim Lawless.

www.rpdata.com

4 Feb 2009 - Save the Buses

LOCAL businesses are standing together in opposition to proposed bus-route changes throughout Holroyd.

They predict a dramatic drop in customers if the changes are approved.


The chairman of the Merrylands CBD Committee, Sheldon Ross, Trevor Oldfield representing Wentworthville retailers, Rob McIntyre representing Greystanes Shopping Centre and Danny Mannix from the Hilltop Road area in Merrylands met on Thursday to discuss the likely effects of cuts.

http://www.parramattasun.com.au/news/local/news/general/business-fights-changes/1423264.aspx

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