We’re almost at the midway point of 2011 so let’s take a look at where things are at in the world of property and finance…
Property Market: The South Australia property market is flat at best, with prices retracting in the majority of areas. There’s no doubting it is a ‘buyers market’, the only problem being there doesn’t seem to be any buyers around at the moment. And the latest loan refinance figures indicate people are choosing to stay where they are and renovate rather than sell and move.
Property Investors: If your plan is buy and hold for capital growth you could find yourself going backwards over the next few years. You see the best way to make profits in a flat market is to create your own equity rather than wait for it. That’s why we’ve been holding a series of renovation seminars this year. In fact, we recently had one of our students [a single working mum] make over $50k in just 4 months following the strategies we teach. For more info on our next seminar click here
Interest Rates: While another interest rate rise is still on the agenda, its timing has now been pushed back until at least September. The motivation for this apparent softening of the RBA’s line on a rate rise seems to have come partly from overseas – in particular the Greek financial crisis – with economic data indicating slower growth in activity globally. However, the RBA is sticking with its central forecast of a pickup in Australian economic growth to an ‘above trend’ pace, which would be expected to cause a ‘gradual pick-up in inflation’.
First Home Owners: The First Home Owners Grant will continue to remain at $7,000 for new or established homes, however as part of the State Budget handed down on 9 June 2011, the Government announced the phase out of the $8,000 First Home Bonus Grant [FHBG] by 1 July 2013. The FHBG is only available for new homes and will be reduced to $4,000 from $8,000 [and phase out between $400,000 and $450,000] from 1 July 2012 and then to be fully abolished from 1 July 2013.
Exit Fee Ban: After weeks of intense industry lobbying, the Senate will soon vote on the controversial legislation, which seeks to outlaw the imposition of any exit fees, or fees charged by lenders upon termination of a loan contract. As we’ve mentioned previously the overwhelming industry consensus is that the ban on exit fees will put the non-banking sector at a disadvantage and thus actually reduce competition amongst lenders. Thankfully a bunch of Pollies agree and so there’s a good chance the proposed legislation will get blocked in the senate – only time will tell!
As you take a moment to read this month’s news, remember Urbantech is always as close as your phone!
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