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Hello,
Another month and another rate rise by the banks, who are obviously trying hard to maintain their multi-billion dollar profits. Despite the Reserve Bank seemingly taking their finger off the trigger for the moment the banks have once again taken it upon themselves to increase interest rates. It started with St.George Bank last week increasing their variable rates by 0.20% p.a. The other major bank lenders have all followed except only for Westpac at this stage but they will surely make a move soon also unfortunately.
Obviously the economic climate continues to throw up some obstacles. But it has also created some opportunities for home owners and property investors.
Our first article looks at one of these opportunities - the rise in rental returns - and how this translates to making an income out of your investment property.
On the flip side, we once again look at one of the biggest obstacles home owners have had to face this year - rising interest rates. In our article "Interest Rates: where to next?" we review the predictions for the coming year.
As part of dealing with rising rates we share our tips and strategies for managing your money and protecting yourself from financial strain.
Lastly we look at Line of Credit home loans and how they can be used to help with managing debt or providing easy access to funds for renovation or major purchases.
Enjoy this newsletter and feel free to share it with family and friends.
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PO Box 319
Toongabbie NSW 2146| Tel: | 1300 66 12 11 | | Mob: | 0404 037 663 | | Fax: | 02 8214 6592 |
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Rents on the Rise
Property investment has been given the thumbs up with the news that rental returns are on the rise. According to the latest research by leading property information provider, RP Data, four of the seven capital cities are showing an increase in gross investment returns (yields) from residential property.
Of the capital cities that haven't yet shown an improvement - Adelaide, Brisbane and Melbourne - it is expected they soon will follow the same trend...
Read More >>
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Interest Rates: Where to Next?
Depending on who you speak to, the coming months will either see a slow-down in the economy or a rise in interest rates. While there is agreement among economists that Australia is no longer immune from the US financial crisis, the extent of this immunity is the cause of much debate!
The financial turmoil that began in the US late last year with the subprime mortgage crisis is still being felt in the global financial markets. Australia has experienced knock-on effects through sharemarket instability and rising inflation in the economies of our major trading partners...
Read More >>
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Managing Your Money
It's often said the secret of managing money is to live as economically the day after payday as you did the day before. A little common sense and restraint can go a long way towards creating a healthy financial situation. The solution lies in gaining control of your spending and finding an enjoyable lifestyle suited to your income rather than your dreams!
Read More >>
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Line of Credit Home Loan
Looking for a way to pay off high interest debts, fund your home improvements or make a major purchase? A line of credit (also known as a Home Equity Line of Credit) is a flexible transactional mortgage that allows you to access the equity in your property for a variety of financial needs.
Unlike a standard loan where you start paying interest and payments at a fixed rate until repaid, a line of credit acts like a revolving credit card. In other words, you don't pay interest on the full loan...
Read More >>
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Mortgage & Finance Association of Australia
Mortgage World Australia is a full member of the MFAA. As a member we must adhere to an Industry Code of Practice, which requires professionalism, ethical behaviour, transparency and a commitment to you, the borrower.
This helps to ensure that your best interests are at heart whenever we make a finance recommendation.
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News & Specials
- Bankwest have brought back their Rate Tracker Home Loan which offers a 0.90% p.a. discount off the average standard variable rate of the big 4 banks for the first 3 years of the loan. There is also no early repayment penalty on this loan which means you can refinance after 3 years without being charged a hefty exit fees.
- As of Monday 13th July RAMS are offering a FlexiFix product where up to a maximum of 50% of the loan amount can be fixed for 2 years at 4.99% p.a. rolling over to the Smartway Variable rate after 2 years. Variable portion can only be taken as a Smartway Variable loan which currently offers an interest rate of 5.49% p.a.
- St.George are offering a 0.15% p.a. discount off their fixed rate home loans if taken under their Advantage Package. Westpac are offering a 0.20% p.a. discount off their fixed rates under their Premier Advantage Package.
- Although most lenders are no longer offering cheap low doc interest rates RAMS are still very competitive in this market.
- Go into the draw to win $10,000 in Cold Hard Cash by either booking an appointment with us, using our services to take out a home loan or by referring a friend. Competition ends on 31st July 2009.
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Disclaimer: This newsletter is intended to provide general news and information only. Readers should rely on their own enquiries before making any decisions regarding their own interests. Please do not rely on any part of this newsletter as a substitute for specific legal or financial advice. All material is copyright 2009.
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