Interest Rates Cut By 0.75% Today

The RBA has moved to reduce official interest rates by 0.75% today in an effort to halt further deterioration of the Australian economy as a result of the global credit crisis. This follows last month’s 1% rate cut and 0.25% in September, creating a total rate reduction of 2% in the last three months. Economists are predicting further falls into next year, which is good news for home owners and property investors.

The CBA announced that it would be reducing its standard variable rate by 0.58% instead of the full 0.75% RBA cut. Since September the CBA has reduced rates by 1.84%, with the other major banks following with similar margins.

The combined rate cuts of the past three months will add up to a $500 per month decrease in interest payments for an average $300,000 mortgage.

Refinance and receive a $1500 rebate

In the month of November RAMS are offering a $1500 rebate to help pay exit costs for refinancing other non-bank loans. RAMS have the best interest rates on the market for Lo-doc and Full-Doc loans and are now funded by Westpac. If they pass on the full 0.75% rate cut announced today their discounted rate will be 6.74%. The offer applies for all loans above $225,000 lodged in November and settled by the end of February 2009.

Call Vincent at 888 on 66857888 to see how much you can save by refinancing your home loan today. He will prepare a full proposal and compare your current loan with the best new loan on the market as a free, no-obligation service. Many of our clients are saving thousands of dollars a year by refinancing with 888.

Property Market Recovery Immanent

New figures show The Australian property market is showing signs of recovery. Indicative September quarter figures show property values nationally declined by just 0.5 per cent, according to the RP Data-Rismark National Property Values Indices. In the nine months to September 30, Australian property values have been largely resilient, tapering only 1.4 per cent.

The recovery of Australian property is being largely driven by the difference between supply and demand. We need 190,000 new homes annually to meet demand, but are currently only producing 145,000. The accumulation of annual shortfalls in new construction will peak at 200,000 homes by 2010, which means that Australian house prices will rise in the near future.

The Government’s increase of the First Home Buyers Grant to $14,000 for established and $21,000 for new homes is having an impact on demand, causing more buying competition for homes.

If property prices increase in line with the gross domestic product (GDP), property values will be around 80 to 90 per cent higher in a decade.

Housing affordability is also improving due to interest rate cuts and the Government's $10.4 billion worth of fiscal stimulus this year. RP Data's subscriber base, which includes around 70 per cent of real estate agencies across the country, is reporting an increase in sales enquiry, focused primarily in the lower-priced segments of the market.

Casino – booming and affordable.

With the Government increasing the First Home Owners Grant and property investors looking towards lower cost, better cash flow property, Casino is on the map for above-average growth.

The inland town of Casino has also just been listed in the top 50 growth suburbs for units by property report specialist, RP Data. The August report lists Casino as one of the star performers, fueled by the town’s warm embrace of the “Grey Nomads”, which has caused a greater demand for units.

Houses are also in demand, largely due to the affordability with a median price of $234,000 and average rental yields of 5.8%. Some properties are achieving a yield of 7%, which makes Casino a great investment for new buyers.

Growth prospects for Casino are also high, caused by the following driving factors:

• National headquarters for the Australian Motorhome Association with the redevelopment of the Casino Aerodrome at a cost of $16m. This provides a permanent base for members with a relocatable home park and provides demand for units and injects money into the local economy.
• New IGA supermarket to go with existing Woolworths and a new Aldi supermarket planned.
• The largest natural gas deposit in NSW discovered 2km from Casino. Metgasco is developing pipelines to supply Nth NSW and into Metropolitan Queensland. A new power station planned.
• The meatworks now booming due the break of the drought with 800-900 employees.
• The Far North Coast Regional Strategy plans another 51,000 new homes to meet growth demand in Lismore, Kyogle and Casino, to be built in the next 25 years.

We are currently buying properties in Casino through 888 Buyers Agency. We are finding great value in 3 and 4 bedroom houses and also for potential subdivision and unit development sites.

Casino has averaged 10.5% growth per year over the last 10 years and 11.6% in the last year. Call us on 02 66857888 to discuss investments in Casino.