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					  <title><![CDATA[eNews - May 2012]]></title>
					  <link>http://www.negotiator.com.au/blogs/66/eNews---May-2012.html</link>
					  <description><![CDATA[
Well it seems that finally the RBA have agreed with the rest of the country&#8217;s economists and have this month reduced the benchmark interest rate by 0.5%. The major lenders haven&#8217;t passed on the whole rate but at least variable mortgage rates will fall over the next couple of weeks.
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Follow this link for full details - click here
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Population growth is continuing and equals a need for increased housing. The Australian Bureau of Statistics recently released demographic data and it showed that Overseas migration numbers have once again started to increase and this has contributed to the stabilization of Australia&#8217;s population growth.
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It is important to note that the current rate of growth remains well above the average population growth over the past 30 years. Over the 12 months to September 2011, Australia&#8217;s population increased by almost 320,000 people. Research by lending data provider Veda shows that home loan enquiries rose 1.5 per cent in the year ending March 2012 &#8211; the first annual rise since 2008-2009.
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It&#8217;s thought that a pick-up in mortgage enquiries, for the first time in two years, could be an early indicator that house prices are on the way to recovery in the months ahead.
This is a trend to watch, particularly if you are hoping for a future pick-up in house prices.

Last week I was asked about what&#8217;s involved in being a guarantor for your children:
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Offering to be a guarantor can be a great way for parents to help their children into the property market sooner. Committing to be a guarantor will give your children the extra financial equity and support needed to maximise their chances of meeting the requirements of many financial institutions.
This process will allow you to unlock the equity built up in your own property and use this as collateral, helping your kids achieve homeownership sooner. Best of all, this strategy does not require you to dip into any of your own savings or liquidate any assets, reducing the risks and financial strain for you. You just need to be aware of the circumstances in which you will be held accountable for loan repayments, how much of the loan you will be responsible for and for how long will you need to act as guarantor for the loan.
Once you have agreed to be a guarantor for your child&#8217;s mortgage, you will be held accountable for any late repayments. Before becoming a guarantor therefore, it will pay to look closely at your child&#8217;s current financial status and assess their ability to make the required repayments.
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As the size of the mortgage decreases, the value of the property grows and the children&#8217;s salary increases, you will be able to relinquish your support as a service or security guarantor, allowing your child to take full responsibility for their home and mortgage.Deciding to go guarantor on your child&#8217;s mortgage is a big decision and one which requires careful consideration. But with the right approach and understanding, you can give your child a head start in life and place them in the right direction to secure their financial future.
Until next month, keep well &#8211; you know where I am if you have any questions.
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Kind Regards,
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Gregg Mountford
Negotiator Finance]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Tue, 08 May 2012 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - April 2012]]></title>
					  <link>http://www.negotiator.com.au/blogs/65/eNews---April-2012.html</link>
					  <description><![CDATA[
A happy Easter to you.
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The Reserve Bank have carried out their monthly meeting as usual and have once again decided to leave rates on hold. While there is still much speculation about a possible further rate cut in the coming months, it is by no means a foregone conclusion.
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The Reserve Bank relies largely on several factors when deciding what to do with rates, one of these is inflationary figures. With some key inflationary figures due out this month, they are likely waiting on an indicator from those figures on where the next move might be.
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If they remain within the RBA&#8217;s acceptable margins we may see rates continue to hold for some time. A slowing economy however, could mean a rate cut as soon as next month&#8217;s meeting, so right at this time we need to wait and see what happens.
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On the property front, it is a bit of a mixed bag across the country, and mining areas still seeing strong demand and capital cities and major regional centres largely in a holding pattern. It does seem that the large falls that some markets have experienced have somewhat stabilised. It also just means that in all markets there are opportunities and options. No market is all bad or all good.
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The time to buy however always remains the same, and that is when you are ready.
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Through all markets and cycles I have seen people make good decisions and not so good ones. So, it does not matter if you are buying to live in, investing or raising business capital for Vehicle and Equipment purchases, the secret is planning and research.
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Know the prices that are common to where or what you want to buy, know what your financial commitment will be and know what your limits are. Above all, make sure your future financial goals and aspirations are a consideration.
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One question I was asked last week that I thought I&#8217;d share with you:
What can you claim on vacant land?
When purchasing a house land package where the land settles first and construction then takes a further 6 months or so, you can in most cases claim the interest on the land portion of the loan. If your intention from the very beginning was to purchase land and build an investment property that will generate rent, then the interest on the loan for the land purchase is tax deductible from the purchase date. The key is to ensure you can prove that your intention was to use the house&#160;as an investment property and not for private purposes.&#160;&#160;
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Until next month, keep well.
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Kind regards
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Gregg Mountford
Negotiator Finance]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 08 Apr 2012 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - March 2012]]></title>
					  <link>http://www.negotiator.com.au/blogs/64/eNews---March-2012.html</link>
					  <description><![CDATA[
The Reserve Bank has completed their monthly meeting as they do on the first Tuesday of each month and the decision was to leave official interest rates on hold at the current level.
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However, we saw after last month&#8217;s meeting that the majority of lenders all moved rates up slightly even though the RBA stance was one of a holding pattern so we will have to wait and see what happens this month.
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As I have mentioned previously, the RBA is responsible for setting &#8216;Monetary Policy&#8217; and while in the past this has been largely religiously followed by lenders this is simply no longer the case. With world events largely dictating what money is available for mortgages and the cost of those funds, it was inevitable this would eventually happen.
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Just to recap, lenders raise funds for mortgages in many ways but the two most prominent are from deposit savings they hold and local and international funding organizations. When availability of funds is tight in the world markets, this drives up the cost of those funds under the old &#8216;Supply and Demand&#8217; principals. Hence, at the moment those funding sources are limited and that is why we are seeing rates rise in some areas. As liquidity in these markets improve, we may see an easing of rates accordingly, however when this might happen is really only guess work at this point. With much of Europe, America and the UK being in the grips of a prolonged recession it could be some time yet. 
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While most industry &#8220;Experts&#8221; are predicting another rate move down by the RBA in the coming months, in reality we are all just guessing. A deepening crisis in overseas economies could see us with even further rate falls. Conversely a rapid recovery could see stability and even future rises.
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I was reading an article last week about Perth and WA and where it&#8217;s heading and some of the interesting facts that were mentioned were:
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Perth is set for a population explosion and was expected to grow by 750,000 people to 3.06 million by 2026 &#8211; about 450,000 higher than estimated in 2006.
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It took from 1971 to 2006 (35 years) for WA to grow by one million people, the next one million will likely take only 20 years.
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The nation's jobless rate fell in January after an extra 46,000 people found work through the month &#8211; nearly half of them in WA. It pushed the unemployment rate down to 5.1 percent from 5.2 percent. In WA the jobless rate was steady at 4.2 percent.
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The rental squeeze in Perth continues with the number of properties available for lease falling almost 20 per cent in the past two months. The rent on rental properties in the city has increased between $50 &#8211; $130 a week in the last 9 months. 
The indicators are looking very good for Perth, suggesting we could see some strong movement in the market soon. It&#8217;s a very good time to be a landlord with strong rental demand and the prospect of solid total returns.
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Until next month.
Remember I&#8217;m only a phone call or email away.
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Kind regards,
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Gregg Mountford
Negotiator Finance
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					  <author>Gregg Mountford</author>
					  <pubDate>Sat, 10 Mar 2012 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - February 2012]]></title>
					  <link>http://www.negotiator.com.au/blogs/63/eNews---February-2012.html</link>
					  <description><![CDATA[

The RBA met for the first time this year and much to the contrary of most forecasters they have decided to leave rates on hold. To read the RBA full announcement you can simply click here. 
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Interest will now turn to major banks, some of which have made their own moves on interest rates regardless of RBA decisions. Both ANZ and Westpac made the break with the Reserve Bank by raising its mortgage rates. ANZ last year indicated it would no longer be bound to the official cash rate, saying the bank would make rate announcements the second Friday of each month. ANZ have lifted their standard variable rate by 0.06% and Westpac by 0.10%. We&#8217;ll have to wait and see what the other banks decide to do.
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Many will have been hoping for another rate drop, but in reality with rates already low, another rate drop would have possibly meant our economy was heading into further trouble. With the RBA seeing things as steady, this is actually a good sign. While we want to pay as little interest as possible, ultimately we all need a sound economy, so steady is a good thing. We don&#8217;t want booms or busts.
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In the last six months, rents have increased quite significantly and I&#8217;ve had a few people ask me by how much can rents be raised and how often &#8211; the bottom line is Landlords cannot simply increase the rent because the market has moved. The Residential Tenancies Acts in each State and Territory covers strict legislation that needs to be adhered to or landlords can face penalties.
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The Acts basically state that if your tenants are on a fixed-term lease agreement the rent cannot be increased unless a rent review clause is written into the lease agreement. If the clause is in place, the tenant needs to be given usually 60 days notice.
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The rise cannot usually occur within 6 months of the tenant moving into the property or be increased within a 6 month period of a previous rent rise. If your tenants are on a periodic lease agreement, the rent may be increased but the above conditions also apply.
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I make sure that rent reviews are a standard clause in my tenancy agreements allowing flexibility for owners should the rental market shift.
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Under-renting properties is also an issue for property investors. I came across a property that was being rented at half of its market value. The property was tenanted by the same tenants for quite a few years, who never received a rent increase during that time despite the property being under professional management, the market shifting, and the tenants being on a periodic lease agreement.
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Unfortunately I have seen this situation on a number of occasions. Some property managers have too many properties on their books to give individual properties the attention they deserve. Many property managers don&#8217;t own a property let alone an investment property and can fail to understand the needs of investors.
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This situation can also occur in self-managed properties. Owners can become &#8216;emotionally involved&#8217; and don&#8217;t want to offend or risk losing their tenants if they increase the rent. 
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As a result of these situations, properties may be under-rented leaving owners with a loss in income. It is important that owners take an active interest in their properties and know what the market rents are. It&#8217;s as simple as going to the realestate.com website and seeing what&#8217;s renting at what price. If necessary you can question your property manager if you believe your property is being under-rented.
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Until next time, keep well. 
Just remember, if you need any help, I&#8217;m just a phone call away.
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Regards,
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Gregg Mountford
Negotiator Finance
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					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 12 Feb 2012 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - January 2012]]></title>
					  <link>http://www.negotiator.com.au/blogs/62/eNews---January-2012.html</link>
					  <description><![CDATA[
Happy New Year to you all. Welcome to 2012 and the first Negotiator eNews Email for the year. We hope you had a safe and well-rested holiday break.
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The Reserve Bank of Australia do not meet in January, therefore the interest rates remain as they did in December 2011.
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Australian housing markets have generally struggled for growth through 2011, with reduced buyer activity and decreases in median house prices being recorded in all capital cities.
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But, that looks like it&#8217;s all set to change in 2012, with sustained house price growth becoming evident. Demand for housing is set to intensify in 2012, which will see housing markets re-energised. After falling by 4.2% over the year to October 2011, Australian Property Monitors are forecasting that the national median house prices should recover to rise between 3 and 5% over 2012.
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Here are what the Australian Property Monitors are predicting for the 2012 median house price growth:National&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3 to 5%Sydney&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3 to 5 %Melbourne&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0 to 3%Brisbane&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;5 to 10%Adelaide&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0 to 3%Perth&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;5 to 10%Hobart&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0 to 3%Darwin &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 5 to 10%Canberra&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3 to 5%
Source: State of the Market, December 2011
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For anyone with investment properties it&#8217;s wise to always have Landlord Insurance:
There are a number of ways to make insurance more economical. 
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Pay annually: in most cases, paying by direct debit means you&#8217;ll pay more over the course of a year. Pay up front, and you&#8217;ll save.
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Security: install a few simple measures like window locks, smoke alarms and security systems. Insurers like secure properties.
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Use a property manager: many insurers prefer it when a property is professionally managed.
Until next time, keep well. 
Remember, if you need help, I&#8217;m just a phone call away on 0411 233 293.
Regards,
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Gregg Mountford
Negotiator Finance
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					  <author>Gregg Mountford</author>
					  <pubDate>Fri, 06 Jan 2012 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - December 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/61/eNews---December-2011.html</link>
					  <description><![CDATA[
Another month and another meeting. When the RBA board met this month, they decided to lower interest rates by 0.25% which all the retailers will welcome with open arms in the final run up to Christmas, as will all of us with mortgages. This also marks the first time since February 2009 that the RBA has made back-to-back rate cuts.
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The RBA is taking a pre-emptive strike against a possible further financial meltdown in Europe, a situation that simply will not go away and will have a bearing on the world economy for some time to come. In some ways I think we would all be better off if it all just came to a head and the world could then get into recovery mode and get over it. However, it seems the world finance guru&#8217;s will keep looking for band-aids to patch up the wounds in Europe&#8217;s financial woes. 
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Due to good regulation, Australia has a strong banking system, a good level headed Reserve Bank Board and strong trading partners in Asia dependant on our resources. While we are certainly not immune to world financial troubles we are somewhat insulated compared to other countries.
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This is a time for consolidation of debts, debt reduction and saving. It may also be time for astute buyers to be getting into the property market.
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We have low unemployment, great prospects and truly live in a lucky country. When the world does get some sense back we are well positioned to take advantage of any upswing.
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Another thing I&#8217;d like to mention this month is retirement. By 2023 the retirement age will be increased to 67 and the number of retirees is set to double by 2047.
This amounts to over 7 million people or 25% of the population, all with greater life expectancies and it is highly unlikely that the government will be able to provide any thing other than a basic pension allowance, probably somewhere around the equivalent of the unemployment benefit. 
It is also a fact that currently more than 90 per cent of Australians retire in financial circumstances that are quite different from what they would have expected.
So, how much do you think we need to retire and maintain our current lifestyle?
The Association of Superannuation Funds of Australia, when estimating the weekly and annual household expenditure for a comfortable retirement, suggested the following:
For a &#34;comfortable&#34; lifestyle, a single retiree would need $702 per week ($36,600 per year), whilst a couple would need $939 per week ($48,900 per year).
Modest or comfortable lifestyles may vary, but the figures give an idea of what you need to spend each year.
Financial planners often use the guideline that you&#8217;ll need 60&#8211;70 per cent of your pre-retirement income, each year, in order to be comfortable in retirement. 
A mistake people make is thinking that their cost of living will dramatically reduce when they retire. Some feel that 60-70 per cent of pre-retirement income isn&#8217;t enough and you should aim for a retirement income that&#8217;s equal to the after-tax income you earned before retirement. 
Just something to think about and how you are going to plan and fund your retirement.
Until then please have a safe and happy festive season and a prosperous new year.
Keep well.
Regards,
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Gregg Mountford
Negotiator Finance
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					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 11 Dec 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - November 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/60/eNews---November-2011.html</link>
					  <description><![CDATA[
Well, another Melbourne Cup day has come and gone and another announcement by the Reserve Bank on interest rates. Unlike last year, the news this time is a welcome reduction instead of an increase, as it was a year ago. The RBA decided it was time for a stimulus to our economy and have lowered the benchmark rate by a quarter of one percent (0.25%) - something I am sure all of us with a mortgage will appreciate in the run up to Christmas. It seems our 2 speed economy and general financial jitters around the world have finally warranted some action.
For those of you that know me personally, you will know I rarely promote fixed interest rates. One of the major reasons is that almost every long term study on interest rates shows the majority that fix are worse off in the long run than if they had stayed variable. MAJORITY being the key word here - the last time I looked it was some 80% of people were worse off.
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Other key points why I&#8217;m not overly in favour of fixing:

&#160;&#160;&#160;&#160; * Often you have reduced flexibility of payments.
&#160;&#160;&#160;&#160; * If you need to refinance or sell during the fixed period there could be&#160;&#160;&#160;&#160;&#160;&#160;&#160; large penalty fees.
&#160;&#160;&#160;&#160; * Usually no 100% Offset accounts.
At least this month, people on variable rates will save money on their repayments. 
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In the constant debate over shares versus property, bricks and mortar have won out&#8230; again.
1. You can value add to property just by painting, re-carpeting, new curtains, new bathrooms/kitchens etc which will increase the value of your investment.
2. According to an Australian Property Report, the family home has been the highest returning asset over the past 24 years.
3. Limited Supply &#8211; the supply and demand affects the price of properties. 
4. Your own home doesn&#8217;t attract Capital Gains Tax.
5. Property is simple to understand and trading shares is a profession that includes understanding company reports and technical analysis.
6. You can be in charge of your own investment property &#8211; you can see it, touch it and drive past it.7. Unlike shares, in this point of time in the Stock Market, it is very volatile &#8211; up and down like a bungee jump.
According to RP Data&#8217;s latest Equity Report, over the five years to June 2011, capital city home values have increased by about 30%, providing a significant wealth boost to most home owners during this period. 
It&#8217;s interesting to note how the different investments have done over time:
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Property was found to have generated an annual return between 9% - 12% depending on the location
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Stocks 8.9%
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Government bonds 4.8%
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Commercial property 4.2%
&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Term deposits 3.7%
The result from the equity analysis reveals that only 3.7% of Australian homes are currently valued at a lower amount than the price at which they were purchased.
Homes also held for a longer time frame have accumulated more equity than those held for a shorter amount of time. My strategy is to buy and hold for the long term.
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Residential property has proven to be a sound investment choice for future financial security.

Until next time, keep well and be safe and by the way, I waved to the Queen and the Duke as they drove past my home and the Queen gave me a royal wave back.
Regards,
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Gregg Mountford
Negotiator Finance]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 06 Nov 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - October 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/59/eNews---October-2011.html</link>
					  <description><![CDATA[
As was widely expected the RBA have this month decided to leave interest rates on hold.
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The full link to the RBA announcement is below if you would like to read it. Click Here
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The recent developments in the Australian Market indicate that the property market is getting ready for a comeback:
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The Australian dollar is now hovering at parity with the US dollar.
There is an increased chance of an interest rate cut and lending policies are beginning to loosen a bit.
Rental returns on investment properties are very strong and are increasing.
Number of properties on the market has been decreasing.
Nice and short this week.
Until next month keep well. 
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Regards,
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Gregg Mountford
Negotiator Finance]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 09 Oct 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - September 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/58/eNews---September-2011.html</link>
					  <description><![CDATA[
How quickly things can change in one month. At the last RBA meeting all the talk was of rising interest rates, now the speculation seems to be when they will fall and by how much.
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At this month&#8217;s meeting the RBA have decided to take a &#8216;wait and see&#8217; approach to the current market fluctuations and despite many predicting large and fast rate falls the RBA have decided to leave rates on hold &#8211; for the 10th consecutive month. They will closely monitor world financial markets and the local market, but will not likely be rushed into any knee-jerk reactions either way. 
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It has also been hard to miss the share market recently taking a huge hit, which I believe will result in more investors starting to flood back into the property market. Why? History shows that over the past 50 years of stock market crashes, usually a property boom follows.
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You have heard the comments that we are currently in a 2 speed economy, with mining doing exceptionally well yet retail and manufacturing struggling - this is a major reason why the RBA will wait and see what happens in general terms. Raising or lowering rates now could have drastic effects on each of those 2 speed economies and no one wants drastic changes anywhere.
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So to the million dollar question - will rates move down or will they move up? Good question. 
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The answer? Simply we will have to wait and see how the economy performs. While in the short term current interest rate pressure is weighted to the downside and this is the most likely outcome at the moment, a turn in the overall economy and money markets could quickly have us return to upward pressure in the midterm.
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But, as the saying goes, always look on the bright side of life and every cloud has a silver lining.
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The silver lining right now is that fixed interest rates have plunged in the last month (Especially 3 year rates) with rates in the mid 6% range readily available. If we look at rates over the last 20 years then this is historically low. CAUTION however, if you are considering fixing, always think before you act and look at all the possible ramifications. Everyone&#8217;s situation is different and fixing should be considered only after looking at your personal position and goals - there is no &#8216;One size fits all&#8217; approach. However, people should take care not to be enticed to fix their home loan for all the wrong reasons. 
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Fixed rate movements are generally very good predictors of what lenders think will happen to interest rates, so there is the possibility that variable rates might go down given the global turmoil.
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If we remember back a few years there were more than 100,000 people who opted to chase cheap fixed rates and this kind of slashing frenzy was the focus of media attention. Sadly these people were left sitting on the sidelines watching as the RBA was dropping rates dramatically over a matter of months with no benefit to them or their mortgage repayments. In the end, costing customers more money. Banks are in the business of making money and will set rates accordingly to make money.
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If you are like me and sick of all the bad news headlines and the political fighting that is going on with everyone playing the blame game then remember this&#8230;..Don&#8217;t worry about things you can&#8217;t change.
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So concentrate on those you can, you CAN choose to be positive - if only the media had a positive mindset. In the end our results reflect our thoughts.
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Until next month keep well. Remember I am only an email or call away if you need any assistance.
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Regards,
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Gregg Mountford
Negotiator Finance
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					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 11 Sep 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews - August 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/57/eNews---August-2011.html</link>
					  <description><![CDATA[
Good news again this month with the RBA deciding to leave rates on hold once more. There are still concerns out there about rates going up but we will likely have some respite until the debt crises in the USA has been resolved in their parliament. That amongst other world economic factors is likely to have a greater effect or at least as much as what our own economy is doing. We really are a global economy these days.
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Interestingly fixed rates have dropped somewhat in the last couple of months - could that be an indication of where rates are going longer term?
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If history is anything to go by then this is absolutely a good indicator. They say history never repeats, I think it does when it comes to interest rate trends. The only question that remains is will we see more rises before the eventual fall? That is &#8216;Crystal Ball&#8217; territory.
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How does Perth compare to the Eastern States? 
The Perth property market has in the past fallen behind the major capital cities on the East side by a few years. In 2001 &#8211; 2003 Sydney and Melbourne boomed while Perth grew at a much lower rate. When the boom ended in those cities, Perth had a property boom from 2004 &#8211; 2007. Since 2007, the Perth market has been generally flat on average, whereas Sydney has performed well and Melbourne has had the substantial growth. Both of those markets are now cooling so it looks like Perth might out perform while the other cities have their slowdown.
The outlook for Perth is very strong over the next 3 to 10 years, even starting as early as over the next year. With over $200 billion dollars of resource investment in Western Australia, there will be significant flow on effects to the rest of the economy and hence property prices.
I&#8217;ve noticed that many people are preoccupied with trying to time the property market and guessing when is the best time to buy. Although it is smart to buy low and sell high, to try to predict the perfect time is difficult and investors should buy for the long term. The goal should be to accumulate equity over time.
With what a lot of economists are predicting, it seems buying in Perth is a good option. People may panic when the market is uncertain and although things are down, history tells us things will go back up again and will bounce back. There&#8217;s a wise saying &#8220;When everyone else is panicking, it&#8217;s time to be accumulating&#8221; - this is where wealth exchanges hands. 
Tax Tips

It&#8217;s Tax time again! Just a reminder to have your Tax Variation done for your investment properties by your accountant. If you need any help don&#8217;t hesitate to give me a ring on 0411 233 293 or email me at gregg@negotiator.com.au 
Anyway, enjoy the stability in rates while it is here and above all keep well.
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To view the full RBA announcement please click on the link below.
Click Here
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Until next time.
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Regards,
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Gregg Mountford
Negotiator Finance
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					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 07 Aug 2011 00:00:00 WST</pubDate>
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