Interest Rates Hit Historic Lows
The Reserve Bank Board met today and decided to lower the official cash rate to 3.25%, the lowest rate since 1962. This is a full 1% drop in the rate, adding up to a total drop of 4% since the RBA started dropping rates in November last year. The leading lenders will now have mortgage rates between 5 and 5.5%. This represents a 57% fall in monthly interest payments for most borrowers.
Kevin Rudd also announced a new $42 billion stimulus package today, combining tax cuts and infrastructure spending. Both these measures are designed to help the Australian economy weather the global financial storm.
This historic low in interest rates offers a great opportunity for investors to receive cash income from their investment properties. The cost of ownership has now been slashed because interest contributes to over 80% of the cost of ownership for most investors. Rents will now pay the owners a dividend, making property ownership more attractive, particularly since the stock market crash.
There is also an opportunity to fix interest rates at their historic lows, ensuring a cash yield for years to come. You can now own property and be paid for the privilege.
You would be wise to come to our free information night to find out more on Tuesday 10th Feb in Byron Bay. Call 66 857888 for more information.
Tricks to Lower Your Credit Card Interest Rate
While banks have been passing on a 57% decrease in mortgage interest rates made possible by the Reserve Bank, credit card rates have hardly moved. Yet there are some simple ways to dramatically reduce your credit card interest bill.
- Switch to your bank’s low rate card. Most banks have a no-frills credit card with rates between 9-12%. It does not have a rewards program and the low rate generally applies only to purchases, not cash advances. Switching is as easy as calling your bank. They will approve the switch without any new application process.
- Apply for a new card with a 0% balance transfer. There are credit cards on the market now that offer 0% balance transfers for up to 9 months when you apply for a new card.
Call us to find out more on 66 857888.
Falling Interest Rates Create More Positive Property
Free Information Night Tues 10th Feb in Byron Bay.
Property investors are licking their lips now that falling interest rates have slashed the cost of property ownership. With discounted mortgage rates now set to close in on 5% and the likelihood of more cuts to come, the gross rental return from many more properties is now sufficient to cover the total costs of ownership. This represents a 57% fall in interest rates and now makes every rental dollar more effective.
As a result, there are terrific opportunities to buy property in good metropolitan locations and expect that the rent will be sufficient to cover all the costs. This makes property ownership easy with no out-of-pocket costs weighing down the investor. Even better, the property market is brimming with great buying opportunities at the moment due to the negative perceptions about the economy. With the share market tumbling by 40% and property holding its value and beginning to gain again it is only a matter of time before investors flock to residential property again, with demand creating more price growth.
While fear is still the predominant sentiment at the moment, many astute property investors are buying new properties, prepared to ride interest rates down over the next year, making them cash flow positive. When rates look like rising again, probably in late 2010, they can fix their rates for 5 years, ensuring their properties are paying for themselves no matter what happens. As the world’s most successful investor, Warren Buffet says, “When people get greedy, get fearful and when people get fearful get greedy.”
At 888 we have identified some great positive cash flow buying opportunities in selected suburbs of Brisbane and in the Surat Basin gas and energy precinct 210 km west of Brisbane.
We have lots of buying experience in Brisbane and are ready to offer our property buying expertise to clients to take advantage of these opportunities. We have also created a buyers agent alliance with Blue Horizons Property operating in Dalby, Chinchilla, Toowoomba and Miles, offering excellent cash flow positive new homes at wholesale prices.
Our free information evening on Tuesday 10th Feb at 7pm at our Byron Bay office will provide a coordinated strategy for investors. Please call 02 66857888 to reserve a place or go to our website under “Events” for more information.
Free Info Night for First Home Buyers
We are holding a free information night for first home buyers at our Byron Bay office on Thursday 12th February at 7pm.
First home buyers in NSW can now qualify to get a $21,000 grant and the state government will top it up with a further $3,000 for buying or building a new home. On top of this they will qualify for stamp duty concessions worth a further $10,000 on the purchase of a $330,000 home.
There has never been a better time to enter the market with interest rates approaching historic lows and a generous government incentive which will expire on 30th June 2009. First home buyers can get a $14,000 grant to buy an established home or $24,000 to buy or construct a new dwelling.
At 888 Wealth Creation we specialise in providing free support for first home buyers with:
- Free Buyer Assist program with phone support for purchasing advice.
- Free Lending advice including affordability, loan selection, and approval coaching.
- Free mortgage broking service – let the lender pay!
- Free Property Analysis reports showing ownership costs and projected growth over 25 years.
Please call us for reserve your place or talk to Vincent about available options on 02 66857888.
Wholesale Properties Available with 8% Return
At 888 we have secured exclusive access to NEW house and land packages in the rapidly growing Surat Basin gas and energy precinct, 210 km west of Brisbane. We have new properties available in Toowoomba, Dalby, Chinchilla and Miles, where a massive build up of workers and their families is underway to serve the rapidly expanding energy, gas and resource industries.
There are projections of 16,000 new jobs and the flow on effect of 100,000 new residents in the area by 2016. There are 100 billion dollars in diverse resource projects planned and commencing in the Surat Basin; clean power stations, thermal coal, new rail lines, new gas pipelines, coal seam methane, gas to liquid plants, ethanol refineries, agriculture and a massive new cattle feed lot are some of the drivers in this new booming economic precinct.
At 888 we have formed a buyers agent alliance offering superior brick homes $20-30,000 cheaper than other competitive offerings. Local builders are working on wholesale rates while we deliver the savings to you.
These houses offer 8%+ rental returns and excellent new home depreciation, ideal for adding cash flow to your property portfolios. With the rapid fall in interest rates these properties are income producing from the start with expected capital gains above $50,000 on completion.
This is the beginning of a major growth cycle for the Surat Basin. We ensure your property has everything fitted ready to rent and work with the best local managers to get your property rented quickly for top dollar. You also get our free property reports and access to the best lending possible through our finance brokerage.
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