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interest rates Archives - Page 1

How to Use Low Interest Rate Climate Best?

In an article for the website Property Update, Kevin Turner talks about a few smart tips to make the most out of the low interest rate scene prevalent in Australia. Official cash rate has come down to a record-low of 2.25%, falling by a further 25 basis points last week. The big four banks have not hesitated any from passing on the benefits in full to the customers.
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Interest Rates Not to Rise Until Late 2015

Contrary to the industry predictions that interest rates could look northward by September, the National Australia Bank (NAB) suggests that rates are not likely to move until 2015’s last quarter. John Batsick reports for an article on the website The Adviser.

Australian property market may not catalyse the upward movement of interest rates, believes NAB. The momentum will definitely come but in the last minutes of 2015 and it will be due to the repercussions emanating from the US federal reserve.

A flurry of foreign investments might also be among the pleasant impacts of the Federal Budget.

You can read the original article here.

What is your prediction on the interest rates?

Housing Data Indicates Unchanging Interest Rates

An article published in The Adviser talks about the potent mix of ‘spending cuts’ and present housing data; a combination which is sure to keep the interest rates pretty low for some time to come.

The market, argues the article, is stabilising and this augurs well for the existing climate of low interest rates. Finance commitments for dwellings have shot up by 19% compared to March last year; with owner occupiers’ share increasing by 11.8% and investors’ share shooting up by 32.1% over the same time-frame. This said, the commitments when compared with February 2014 have mellowed down a little on all fronts.

Need for established houses and new ones have both seen an upward curve since last year. To reiterate, this is good news for all of us expecting the rates to stay where they are.

You can read the original article here.

What do you make of the fluctuation in the fixed rates?

Comprehensive Credit Reporting Won’t Miss Your Good Performance

When we soft landed into the internet territory a couple of decades ago, our lives became a lot more transparent and out on public display. Truth be told, we do not like the way we can be judged online many a times but there are considerable advantages, too. Take the comprehensive credit reporting for instance.
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Fixed Rate Loans May Still Be an Enticing Option

While writing a piece for the website, Venessa Paech talks about borrowers’ growing penchant for variable rate loans. They are quite willing to shun off the lure of fixed rate loans believing that the ‘variable rate’ stuff will offer them greater benefits in the long run.
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Interest Rates to Remain Unchanged

The Australian government expected reduced cash rate to bolster the ailing construction industry and real estate. In many ways, they were proven right and in the last year we have had many reasons to be joyous in this regard. Sydney is passing through its best real estate phase in a long time and the reduced cash rate has a lot to do with it.
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Issues of Negative Gearing and Depreciation Claims

Investors love the idea of capital growth. This said they are not averse to the concept of high rental yield either. In fact, things boil down to how a particular investor is planning his portfolio. Negative and positive gearing both have their merit after all? I will be none the poorer by elaborating on this subject….hasn’t gearing caught public attention for a long while?
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Strategies To Brighten Your Borrowing prospects

Lending institutions are there for a purpose. It is their duty (and their business interest too) to forward us loans. However, it is not their responsibility to tell us what loan arrangement may suit us best. Thus is it important to conduct one’s homework and be as inquisitive as possible when dealing with banks and other lending institutions. Let me try and focus on a few areas which buyers will do well to be informed about.
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Have Mortgage Commitments? Beware Of Possible Interest Rate Hike

I can’t say I am unhappy with the prevailing interest rates. I will have to be out of my mind to crib. However, I think I know the market enough not to be overjoyed either. For long, I have been thinking about a cash rate reversal (for me, the hike might come sooner than expected). Michael Yardney, in an ever so engaging article on the Property Update, talks about a possible hike as early as 2014.
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Mortgage Rates Lying Safe At Their Historical Average

The ever-sustainable debate continues- Are the ‘bears’ right in being circumspect or the ‘bulls’ correct in being adventurous? Both stick to their principles, the fiscal atmosphere of their times notwithstanding. For instance, both the bulls and bears have remained devout followers of their ideologies despite low mortgage interest rates. The former assume that now is the time to go hook, line and sinker and the latter believe that it is good to play safe as the market may whip up a mortgage crisis anytime.
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