Mortgage News

Property price expectations have all but flattened out, with experts convinced that new research data has shown Melbourne will be most affected followed by Sydney. SMH BusinessDay reported that the southern state will see a downgraded projected forecast of just 0.7 % growth over the next year, while Sydney will see only a 2% increase in property prices.

Simon Reibelt from Oasis Home Loans Northern Beaches said buyers have looked at the late continual rate rises equalling lesser affordability. This came in light of the latest weaker inflation figures.

Article Courtesy of SMH BusinessDay.

The Prime Minister Julia Gillard will be heading into the polls with the a sign of good relief as the latest inflation figures show a decline, effectively placing a halt upon the prospect of higher mortgage rates in the lead-up to the election. The RBA’s meeting on Tuesday will more than likely vote to keep the interest rate on pause after acknowledging the rate of inflation fell to 2.7 %,a first in three years it has been below the benchmarked 3% for the RBA.

The benchmarked rate of inflation of 0.6% should of only looked to be 0.3% had it not been for the once off 25% increase in the tobacco tax.

”There will be no interest rate hike next week,” said a Macquarie Group economist, Rory Robertson. ”If you were thinking the Reserve Bank might make the election campaign interesting, think again.”

Simon Reibelt from Oasis Home Loans Northern Beaches.

SMH BusinessDay has reported on the increasing focus of the RBA’s moves that the election has brought about. Interest rates either rising or decreasing has significant bearing upon the marketing campaigns of our Leaders. As a rate hold seems more and more on the cards at the Boards next meeting, it will play more into the hands of Labor. It’s predecessor Kevin Rudd had managed to avoid the nations recession, which was a rarity amongst developed countries such as our own. Inflation figures are a key indicator for the RBA come time to making their decision regarding the June Quarter.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the RBA’s main concern is to keep inflation in check, keeping in mind of the European debts and weight that are pointing towards a double dip recession.

Article courtesy of SMH BusinessDay. Sources by Chris Zappone, AAP, Reuters. 26 July 2010.

Australia’s producer price index at the final stage of production rose 0.3 per cent in the June quarter, less than economists had predicted, as the costs of vehicles and meat fell.

“There were less price pressures in production than we expected, which could help limit inflation through the second half of the year,” said Brian Redican, a senior economist at Macquarie. “The RBA should be pleased with this.”

Even so, today’s numbers may increase the likelihood that the RBA will leave rates on hold at next week’s board meeting. Economists had been tipping that producer prices would rise 0.8 per cent for the June quarter.

Simon Reibelt from Oasis Home Loans Northern Beaches.

SMH & Domain has reported upon Investors interpretation of the current Interest Rate hold period. Effectively it could be considered that the RBA has effectively cooled the property market off for the time being.

The board will need to juggle that if they do not raise rates enough the property market will continue to grow too quickly, though too much and the wider economy falters.

Simon Reibelt from Oasis Home Loans Northern Beaches said that global factors such as the European debt crisis can stall the rise in interest rates aiding Investors to reconsider purchasing property strengthening our home market further.

Article Courtesy of SMH BusinessDay. Written By Mr Chris Zappone, 22nd July 2010.

Low-income tenants are finding it increasingly difficult to pay for a roof over their heads as rents surge and the national rental assistance scheme fails to keep pace with soaring costs.

Simon Reibelt from Oasis Home Loans Northern Beaches.

SMH has reported this morning that with the RBA’s next meeting scheduled in 13 days time, the Prime Ministers election campaign will be  exposed to an unprecedented possible Interest Rate Rise during this, the most sensitive period. The Board’s minutes of its latest meeting pitch that the increase could be on the cards if inflation figures are not within contained acceptable measures.

Simon Reibelt from Oasis Home Loans Northern Beaches said that this would not be the first time the RBA has committed to a mid-election Rate Rise, when John Howard was campaigning in 2007, he was caught off guard by the boards move in light of the Banks pressure for the increase.

Investors and owner occupiers showed their strengthening confidence in the property market by turning out to lead a 61% clearance rate figure over the weekend reported Domain & SMH. Commitments were up from previous weeks, though were still down from a year ago when the Government’s Stimulus Packages were in full swing. Agents commented though that the trend of rising auction rates was increasing.

Simon Reibelt from Oasis Home Loans Northern Beaches said that with people’s increasing confidence with the property market along with greater job security has allowed more decision’s to leap into the market.

SMH Business Day has reported that the 4 major banks are looking for an early election date to be set. This will allow them to promptly set in the required independent rate rises needed in light of new inflation figures and the claimed higher cost of funds.

After the election has passed, it will allow the Banks to enact their own rises without any backlash of the Government in their sensitive polling period. In any case, the new Prime Minister’s rise to office and the projected dates of the election have worked favourably into the banks strategies.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the there will be a small waiting or pending period in which Interest Rates will be set at, inline with any promised policies from the new Government, though the rates will slowly creep up over time thereafter.

SMH reports this morning that property investors are now more strongly convinced that Australia’s property market will face a bust in the not to distant future based upon the recent polls conducted by Colmar Brunton.

Expectations have arisen that investors expect either the greater balance of properties to fall in value, or for the entire market to swing flat in light of various factors that are pointing towards the bubble bursting.

Simon Reibelt from Oasis Home Loans Northern Beaches said that with such strong growth over the last few years, including a period within the GFC, how long could prices continue to climb amidst historic average figures pointing to a downturn?