Des Morgan

Mortgage Broker

Finance Achievers News

All the latest finance news

And Interest Rates Are Going Where?

And Interest Rates Are Going Where?

The Reserve Bank of Australia surprised even the doyen of interest rate tipsters - Terry McCrann (News Limited) when official interest rates were left unchanged following the Board’s February meeting.

McCrann, along with many other experts also didn’t expect what happened next… Virtually every one said the banks had dodged a bullet by not passing on an interest rate cut.

But yet just days later, ANZ Bank announced an increase, albeit small, in its variable home rate. Some would say quite predictably, the other three of the big four banks followed shortly after in a move which was heavily criticised by the Prime Minister and Treasurer.

So what happened? Simply put, the banks say they are paying more to borrow funds from overseas markets. When it came to raising interest rates, they were going to be damned by borrowers if they did, and damned by shareholders if they didn’t.

International economic uncertainty holds the key. When it’s resolved (some say it may take a long time), perhaps things will return to normal.

In the meantime, it might be a very good time to perform a health check on your current mortgage. It could ultimately lead to you saving a considerable amount in the future.

To arrange for a mortgage health check, simply give me a call and together we can look at what can be done to save you money.

Continue reading
Rate this blog entry:
295 Hits
0 Comments

Add value to your property on a budget

Add value to your property on a budget

Are you thinking about upgrading your home or renovating an investment property but want to do it on the cheap? Well, you can!

While it’s worth realising that some areas of the house can’t be done cheaply, there are plenty of affordable and easy improvements you can make to other areas of your home that won’t cost the earth.

Remember that electrical work should always be handled by a qualified electrician – and you shouldn’t attempt large scale renovations unless you personally have the skills to take on the job.

But there are options for low cost renovations that will add more value that what they’ll cost you to do. Start moving forward with your project with these helpful ideas:

Light fittings
For a relatively cheap way to lift the look of your interiors, upgrade light fittings in the main room, including the bedrooms, bathrooms and living areas.

Parking
If your property is the kind that has space and potential for a parking space then consider creating one. Parking can add considerable value to a property and be used as an added feature when selling, particularly in built up areas. See if it’s possible to erect a shade sail to create a ‘parking zone’, or a carport or garage if you have the space.

Improve the floor
Resurfacing the floor with a new carpet, wooden floorboards or modern tiles can make a huge difference to your property and give it a newer look. If you’re not too fussed about the colour or style of the flooring, contact a few different carpet and flooring retailers to see whether they’re selling any discount off-cuts or end-of-line stock. You may also find a bargain online via an auction site.

Painting
It’s an old trick but one that works. There’s nothing like a fresh coat of paint to improve the look of a property, without breaking the bank. Materials will only set you back a few hundred dollars and your only other expense is labour. Recruit friends or family members to help you out or if you’re happy to get it done slowly over time, do it all yourself! 

Continue reading
Rate this blog entry:
297 Hits
0 Comments

Whats your cornerstone of wealth?

Whats your cornerstone of wealth?

It should come as no surprise that the family home is the cornerstone asset for your future wealth.
Real estate guru John McGrath recently shared his views on why the family home is such as important asset.

His first and most important point is that you won’t pay tax on gains in the value of your property, as it’s exempt from capital gains tax. It means your home is the most effective ways to accumulate wealth.

John backs up this statement with recently released data from the Bureau of Statistics that shows the family home accounts for 41 per cent of household wealth and average household net worth has increased dramatically since 2003-04. For more details: http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6554.0Main+Features12009-10

Another observation made by John is the number of investors shying away from shares and looking at property. Numbers show an average of 36 per cent of all new loans went to investors each month in 2011.

He also offers the advice that most of us would already thoroughly endorse: it is really worth getting involved with property at a young age. Over the long term, it is a very safe and stable asset class that will become your most valuable financial investment for the future.

If you’d like to look at investing in another property or helping your children purchase, the best place to start is with me. As your broker I’m just a phone call away and always keen to help.

Continue reading
Rate this blog entry:
302 Hits
0 Comments

2013: the ‘year of living frugally’ in Australia

2013: the ‘year of living frugally’ in Australia

Rising utility costs, uncertainty over employment and a lack of confidence in the global economy will make 2013 a year of frugal living for Australians, according to the ninth annual National Consumer Sentiment Survey.

The online survey unveiled the major concerns, financial plans and housing market outlook of consumers.

It found that Australians will continue to exercise caution and tighten their belts in 2013 by reducing their spending and looking for other avenues to save money.

However, predictions for the property market were generally positive, with almost one quarter (23%) of those surveyed claim they will be more likely to buy property in 2013 if interest rates continue their downward trend.

Over the longer term, 39% of people intend to buy a property in the next two years. Of these property buyers, almost one third (30%) will be first homebuyers, 25% will be looking to buy their next home and a staggering 45% will be investors.

Of the 1,025 people surveyed, the biggest concern for most consumers (22%) was increasing utility bills. Equally in second place were concerns over job security, the state of the global economy, and economic management at a Federal Government level (11% each). Rounding out the top five responses was other living costs such as clothing, insurance etc. (10%).

More than half (52%) of those surveyed plan to make changes to their financial situation in 2013, by reviewing their budget, cutting back on spending and/or reviewing their home loan.

“While confidence levels are fairly low, it is good news that people are seeking to take greater control of their finances and to change aspects that are within their control such as reducing unnecessary outgoings and ensuring they are getting a competitive home loan deal,” said survey spokesperson Belinda Williamson.

If lower interest rates are making a new property purchase look more attractive this year, give me a call. I’ll talk you through all your options and find the perfect fit for your needs. 

Continue reading
Rate this blog entry:
315 Hits
0 Comments

Looking forward to the year ahead?

Looking forward to the year ahead?

The current volatility of the stock market is a good indicator that the European debt situation is far from resolved. The French are accusing the English of behaving badly and the wheel keeps turning and coming back to the same place with suggestions made and dismissed as being too harsh or too impractical.

So, it looks like we’ll have to wait and wait… until it goes one way or the other. As I’ve said in previous months, the Australian economy is well managed and basically sound, and should continue as it has throughout 2011.

Analysts are suggesting the Reserve Bank could make up to five 25 point interest rate cuts in the first half of this year (meaning one a month from February onwards) to help stimulate the economy. This is likely to be offset by a rising cost of borrowing by the banks (a lot of their money comes from overseas), so we may not see the full flow on of interest rate cuts.

In many if not most respects, we can be thankful that we’re in the position we are. Sure, the real estate market is soft across the board, but it is still considerably better than overseas markets are experiencing.

2012 could be a year of consolidation. Australia should remain reasonably insulated from the situation, and there might even be some excellent opportunities to purchase property at a very good price.

As always, if you’re considering buying an investment property or upgrading your home, give me a call.


Continue reading
Rate this blog entry:
348 Hits
0 Comments