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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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					  <title><![CDATA[eNews July 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/56/eNews-July-2011.html</link>
					  <description><![CDATA[
Welcome to the new financial year.
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The Reserve Bank has again decided to leave interest rates unchanged despite previously flagging its intention to increase interest rates in the short term.
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However, the bias towards increasing interest rates remains and is still likely to be initiated by the Reserve Bank on confirmation that inflationary pressures are building up in the Australian economy. 
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While the U.S and Europe both continue to experience significant financial turmoil, the two tiered Australian economy is enjoying the fortuitous benefits of significant export income courtesy of strong demand for our resources in the current commodities boom.
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Prices for coal, iron ore and other minerals are currently running at 25% above peak price levels recorded three years ago prior to the impact of the Global Financial crisis.
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Additionally, with the economy operating at close to full capacity, the current five per cent unemployment level is consistent with full employment from a jobs market perspective leading to increased pressure for wages to rise.
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As always the timing of the next interest rate rise is subject to conjecture but a clearer picture is likely to emerge on July 27 when the next Consumer Price Index figures are released.
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If the quarterly Consumer Price Index figures to June 30 confirm underlying inflation is trending higher than 3% p.a. after allowance for the financial impact of the Queensland floods earlier this year, then it is likely the Reserve Bank will act and pre-emptively raise interest rates.
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If the figures confirm inflation remains benign, the Reserve Bank will continue to have the luxury of time before it needs to act, assisted in part due to the strong Australian dollar currently sitting at USD$1.07 and consumers choosing to save instead of spending in response to the anticipated interest rate rises.
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Public savings are currently running at 12 % of household income, the highest savings levels recorded since the early 1970&#8217;s. 
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While current expectations of interest rates rising create much market commentary as well as concern from borrowers, in reality current mortgage rates are consistent with general mortgage interest rate levels recorded over the last decade and a half.
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I&#8217;ve put a link on the Interest Rate table below, issued by the Reserve Bank which records historical movements in interest rates over more than fifty years. Take a look at the year of 1989 &#8211; who remembers that year? I certainly do.
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Significantly, it is evident that Standard Variable rates have consistently moved up and down in a two per cent interest rate range from the low sixes to low eights over the last fourteen years, primarily in response to the Reserve Bank having the capacity to act independently of elected governments and being proactive rather than reactive to the needs of the Australian economy.
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Click on link here
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A new report from BIS Shrapnel has found that Australian property prices are expected to remain steady in 2011 and grow moderately over the next two years.
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It also points to Sydney, Perth and Brisbane as the cities likely to record the fastest residential property growth in the next three years. 
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The BIS Residential Property Prospects to 2011-2014 report suggests that current downward pressure is temporary and is tipping long-term growth.
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Until next time.
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Regards,
Gregg MountfordNegotiator Finance
]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 10 Jul 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews June 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/55/eNews-June-2011.html</link>
					  <description><![CDATA[
The Reserve Bank have met this month and again announced that interest rates are to be left on hold. The recent turbulence on the share market, rising Australian dollar and mixed signals in financial markets and economic data will have all contributed to this decision.
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Most industry economists are still speculating that we will see rate rises in the coming months, what varies is the opinions on what these raises might be and when.
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While I am certainly no economist, I tend to agree that the next move is still likely to be up although I am not yet convinced that rises of 1 percent over the next year as some are advocating are a foregone conclusion.
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Yes employment is low and inflation is rising, but inflation seems to somewhat be under control. With our dollar being so strong it is hurting our balance of payments in the economy and especially hurting some of our exporters. If rates were to rise this would put even more upward pressure on our dollar, something that would hurt those exports even further.
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So while the RBA has to keep an eye on inflation it also has to keep an eye on the country&#8217;s ability to export in a competitive manner, if rising interest rates slow inflation they also increase the power of the dollar so it is a very fine balancing act the RBA will need to play in coming months.
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Therefore, speculation is just that, speculation. We may not really know where rates are headed until an actual announcement is made or the financial markets and economic data becomes more stable.
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Until next month, keep well, be happy and remember: &#8216;If you think you can or you think you can&#8217;t, you are probably right.&#8217;
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Keep positive.
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Best Regards,
Gregg MountfordNegotiator Finance]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Sat, 11 Jun 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews May 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/54/eNews-May-2011.html</link>
					  <description><![CDATA[
As widely expected, the Reserve Bank decided to leave interest rates unchanged at their current level this month.
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For first time buyers and investors, positive developments that began to emerge late last year in both the lending market and the property market continue to gain momentum this year. 
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With the level of competition between&#160;lenders continuing to intensify and second tier lenders continuing to win market share from the big four major banks through aggressive and more flexible loan offers, the major banks are now engaging in genuine interest rate discounting at a level that has not been seen since 2007. 
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Importantly for all lenders and by association, all borrowers, the cost of borrowing on the wholesale market&#160;to fund home loan lending has stabilized somewhat in recent months. 
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If the cost of wholesale funding continues to remain at current levels and the official cash rate remains unchanged by the Reserve Bank, then it is foreseeable that a major bank will have the capacity to reduce current variable interest rates offered, this would provide them with a competitive pricing&#160;advantage over their competition. &#160;Only time will tell on this one.
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However, as we have seen in the past, if one lender moves in this direction, the others will follow in due course. 
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You may recall last year that one major bank increased its interest rates over and above interest rates rises announced by the Reserve Bank, to great public outcry, but the other banks followed&#160;shortly thereafter. 
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Conversely, competition this year between lenders provides the opportunity for interest rates to potentially move in the other direction - down, which is good news from a borrower&#8217;s point of view. 
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Regarding property, the Melbourne real estate market in particular, but along with many other capital city areas and some country areas throughout Australia has witnessed a significant increase in property listings available to the market. 
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The number of properties in Melbourne for instance that are currently on the&#160;market are at their highest level since the second half of 2008 when the GFC was in full swing. 
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With more properties on the market, the demand and supply&#160;equation has now clearly swung in favour of buyers in many areas. 
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This appears to be&#160;driven by a combination of factors in the areas where it is happening. In some cases vendor&#8217;s price expectations are out of step with current market conditions as vendors might still be looking for that dream price attainable when there were 6 different people looking to purchase every property that became available and now that buyers are around in fewer numbers some properties remain on the market unsold. 
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Additionally, interest rate rises expected later this year and widely commentated on in the media are being factored in by both vendors looking to quit properties prior to any interest rate movements and potential purchasers mindful of increased loan repayments in a rising interest rate environment. &#160;Buyers sometimes now have the opportunity to be selective as to which properties they choose to pursue.
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This has contributed to more subdued price growth and in some cases even price corrections have been evidenced in some areas this year.
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While there is currently little evidence of vendors being forced to sell, should property listings continue to grow at current levels, this could further contain current property sale prices.
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As always, timing is everything and there are currently genuine opportunities for first time owner occupiers as well as investors to buy property at realistic price levels.&#160;
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Until next month.
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Regards,
Gregg Mountford
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					  <author>Gregg Mountford</author>
					  <pubDate>Fri, 06 May 2011 00:00:00 WST</pubDate>
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					  <title><![CDATA[eNews April 2011]]></title>
					  <link>http://www.negotiator.com.au/blogs/53/eNews-April-2011.html</link>
					  <description><![CDATA[
As another month in 2011 slips by, we see that the RBA have decided to leave mortgage rates unchanged. Speculation is rife about when the next movement in rates will be, with not all agreeing that the next move will be upwards.
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However, I would have to say that the general consensus is that an upward move is still more likely than a downward one, but for the moment stability seems to be the flavour of the day and hopefully this will continue for some time. Some economists are saying the next move could be as early as May but more and more are predicting August or later, if at all.
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This month I wanted to include some information on what has been happening in the finance and lending sectors, particularly in mortgages.
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On the 1st of January this year some very strong and changing rules became applicable in regards to lending. All people involved in providing finance need to hold or operate under an &#8216;ACL&#8217; which is an Australian Credit Licence. You will be happy to know that Negotiator Finance has taken the long hard road to obtain this licence in their own right.
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Two points covered under the new licencing regime that has been implemented to protect consumers have been the NCCP &#8216;National Consumer Credit Protection&#8217; and the RLG or &#8216;Responsible Lending Guidelines&#8217;.
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I would quickly like to cover a couple of things that have changed and are changing daily. As with any new rules there is often a time period where those rules hurt and effect many of those they are meant to protect. One of those in particular is the old &#8216;Age&#8217; question that largely disappeared in the last decade.
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That is to say that if you are over 35 years of age then many lenders may ask more questions and it could be a little more difficult to get a standard 30 year term mortgage. Not to say that it will be impossible, but it is proving in some instances to be more difficult.
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One of the biggest statements I get from clients is that they would &#8216;Like to do this or that&#8217; because their brother, mother, cousin, work mate or whoever was able to do so in the past.
&#160;
Put simply, forget what happened in the past, lending has changed and it has changed significantly. There is more onus on the borrower to substantiate income and prove that they are capable of servicing a loan. There is more emphasis on how your ability to service a loan in the future could be expected to vary, for instance if you are planning a family, retiring or changing jobs.
&#160;
When applying for a loan be prepared to answer more questions and provide more documents. Be prepared to sign even more forms.
&#160;
In short, be prepared in the best way you can. If you are unprepared or not given the right advice and guidance you may just see your application declined when it should have been approved. The importance of working with professionals has never been greater.
&#160;
On a positive note, after almost 4 years of very restricting lending patterns from most lenders after the GFC, there are sure signs that some areas of lending are loosening up and that lenders are now actively competing for your business. This is great for borrowers.
&#160;
We have all seen in the papers recently how the &#8220;BIG 4&#8221; have been attacking each other. Bring it on, the more they fight, the more you win. Just don&#8217;t get caught in the hype and change from one lender to another just for the sake of it. By all means review your position, just don&#8217;t be sucked in by advertising hype.
&#160;
Some good things the competition has brought have been discounts in some variable and fixed rates and increased lending opportunities to first home buyers and those with limited deposits.
&#160;
Post GFC, many lenders moved back from higher loan to Value Ratio Loans (LVR) and in many cases restricted lending to 90% of values or even less. In the last couple of months many lenders have again increased those LVR levels to 95% which again allows many more people with lower deposits to borrow money and therefore enter the property market.
&#160;
So, with changes comes both good and bad. The new licencing requirements will see a number of changes occurring regularly, both positive and negative as it always takes time to sort out the bugs in any new licencing regime.
&#160;
What I can say though, is that it has had one great result, it has driven some of the &#8216;Cowboys&#8217; out of the lending scene because it has just become too hard for some of them to operate.
&#160;
Do you need to keep track of all these changes - &#160;NO.&#160; That is what I am for, just be prepared for the process to possibly take a little longer than normal and know that you will be asked to provide more and answer more questions.
&#160;&#160;&#160;
Until next month.
&#160;Regards,
Gregg Mountford
&#160;]]></description>
					  <author>Gregg Mountford</author>
					  <pubDate>Sun, 10 Apr 2011 00:00:00 WST</pubDate>
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