Well it’s official. Despite last ditch efforts to overturn the ban, the government-proposed ban on exit fees for all residential home & investment loans came into force on July 1st. To recap, this ban outlaws the imposition of any exit fees, or fees charged by lenders upon termination of a loan contract.
The ban applies to all new loan contracts entered into after July 1st, however some lenders have announced that they will remove the exit fees payable on a range of their existing customer loans. So if you have ever contemplated switching lenders or you just want to see if you could get a better deal it’s probably a good time to call us up for a chat.
There’s no denying it property prices are falling. According to the latest rpdata research report prices have declined by 2.6% in Adelaide over the last 12 months. Nationally there has been a big swing in both the supply & demand sides with transaction volumes [number of properties selling] down 20% and listing volumes [number of properties on the market] up 25% on last year.
So the news for property sellers is not great, unless of course you’re selling and buying in the same market. On the other hand the conditions are more than favourable for the cashed up home buyer or investor who is on the hunt for a bargain. However a word of warning for the investors – with poor capital growth prospects over the next few years you should not rely on a passive investing approach. We suggest only buying those properties that you can add serious value to. Want to learn more click here
In somewhat of a shock this week Westpac’s chief economist Bill Evans has forecast a series of interest rate cuts. Mr Evans said low consumer sentiment could force the Reserve Bank of Australia to slash the official cash rate by up to 1 per cent in 2012.
This slump in consumer confidence has been blamed on higher interest rates, uncertainty about the global economy and even speculation about a higher cost of living linked to the carbon trading scheme. 3 year fixed rates have just hit their lowest level in 2 years, so if you don’t agree with Bill’s forecast and think rates will go up it could be an ideal time to consider fixing your loans.
And finally, we’ve just made it easier for you to reach us on the go with a new mobile version of our website! Simply access it from your smart phone at m.urbantechgroup.com.au – with just one touch you can now easily call, email and text us or find our exact office location on Google maps!
As you take a moment to read this month’s news, remember Urbantech is always as close as your phone!
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