RBA Cash Rate Decision

3rd June 2009

the Reserve Bank Board of Australia decided to leave the cash rate unchanged at 3%. This decision was believed to be influenced by better than expected economic data released moments before the decision. This can only be promising news for the economy and some reassurance to hopefully bring investors back into the market. Here is quite an optimistic article which may help in keeping your spirit high in these time of uncertainty : http://www.news.com.au/heraldsun/story/0,21985,25574795-664,00.html

FIRST HOME BUYER GRANT TO CONTINUE

13th May 2009

Last night the Federal Government announced that the current First Home Owners Boost scheme will continue in its current format until October 1, 2009. This means that those buying existing homes will receive $14,000 and those buying new homes $21,000.

Adjustments to the scheme from October 1, 2009 will see the First Home Owners Boost scheme halved. Which means those buying existing homes will receive $10,500 and those buying new homes $14,000.

As of December 1, 2009 the First Home Owners Boost scheme will cease and the existing $7,000 grant will continue to be available to all first home buyers.

Tuesday 3^rd February 2009-02-05

TIME TO BE CONFIDENT

On Tuesday, the Reserve Bank of Australia took the interest rate to a record low of 3.25 per cent.

This latest 100 basis points drop should do a lot to boost buyer confidence,

What we need to see right away is the lenders passing on the savings. For the first home buyers, this combination of low interest rate and the grants may genuinely present a more affordable housing option than they have had for a long time.

If a lender passed on the full amount of the RBA drop, a home owner with a $300,000 home loan over 30 years would be better off by around $170 a month. By Tuesday afternoon, Westpac had announced that it would pass on the full amount with the other big three banks reviewing their rates.

We are seeing potential buyers reluctant to commit to buying homes but I believe the property market is a secure place to invest your dollars.

The vendors know the market enough to expect fair prices. They know they can easily price themselves out of today’s market if they have two or three year old expectations.

It is time to talk with financial consultants, assess your ability to maintain loan repayments and get into the market

“The team at LJ Hooker New Farm includes financial consultants who work with sales agents, and we have properties in the range of $300,000 that are well worth a look.