Newsletter

The Reserve Bank of Australia (RBA) has met for their final meeting for 2016, and announced the official cash rate will remain unchanged at 1.5 per cent. We last saw rates fall in May and August this year, which brought the official cash rate to its lowest level in Australian history. The RBA will not meet again until February 2017, so the cash rate will stay at this record breaking low level at least until then.

There is a great deal of speculation about what the RBA’s next move will be. Some forecasters anticipate that rates will now stay on hold until later in 2017 and then start to rise as inflation improves. Others are predicting continuing low inflation and soft wages growth may influence another RBA cash rate cut to as low as 1.0 per cent next year, with the first cut coming as early as February next year. Either way, we can expect to see these very competitive home loan rates in the market for some time.

Regardless of what the RBA decide to do, lenders have been varying their rates outside of the RBA’s rate movements. Over recent weeks we have seen quite a few lenders increase their fixed rates, so if you are considering fixing some or all of your loan, now might be a good time to talk to us.

We are also seeing a more noticeable variance in the rates that are being offered by different lenders in the market. So if you have a current home loan, it’s worthwhile getting in touch to determine if your loan product is still right for your needs.

2016 has been a fascinating year. Global economic influences and developments in the US, such as the election of Donald Trump to the presidency, have caused a bit of uncertainty in the market. But overall it has been a strong year for home values here in Australia. From January to October this year, capital city home values grew by 9.1 per cent. Perth and Darwin are the only cities where values have fallen slightly for the first 10 months of the year.

Compared to the same time last year, combined capital city home values have increased by 7.5 per cent. This is trending up from 6.1 per cent at the end of July this year, with house values growing slightly higher than unit values across the country.

Summer is usually a slower time for Australian property markets, with much activity coming to a standstill over the Christmas period. However, the market activity in most of our capital cities is still quite strong.

According to Australian Property Monitors (APM), Melbourne listed 1173 auctions on Saturday 3 December alone, with a clearance rate of 80 per cent. Sydney also had a strong clearance rate of 76 per cent from 874 auctions on the same day. Other cities with strong auction numbers included Adelaide (160 auctions), and Brisbane (148 auctions), and even Canberra (with 81 auctions).

2016 has been a positive year in our property markets, and this looks set to continue into 2017! With the low interest rates we are seeing at the moment, it’s a great time for those in the market to purchase property, whether you’re a first home buyer, investor or refinancing an existing loan.

As this is our last newsletter for 2016, we’d like to take this opportunity to wish you and your family Merry Christmas and a safe and happy festive season. Thank you for your support throughout 2016, it’s been a big year for everyone, and we’re sure you’re looking forward to the break as much as we are! Thank you once again for your ongoing support, and we look forward to connecting in the New Year.

Information sources:
Home values: www.corelogic.com.au
RBA: www.rba.gov.au

According to the Australian Retailers Association and Roy Morgan Research, we’re expected to spend over $48 billion in the lead up to Christmas 2016, so the Christmas shopping frenzy is bound to put a dent in a few credit cards!

Nobody wants to be a scrooge at this time of year, but it doesn’t pay to throw all caution to the wind. Here’s five great tips that can help you apply some damage control to your Christmas spending spree without giving up the simple joy of giving.

1. Make a list and check it twice.

Impulse purchasing is one of the worst spending traps during the Christmas shopping season. And it can be a particular problem if you’re one of those shoppers who just can’t resist buying a present for yourself every time you buy one for someone else. Making a list is a great way to stay focused on buying only what you need. It can also help you avoid the temptation to shower yourself with gifts when you should be waiting to see what Santa brings you first.

Take a sensible approach by making a list of everyone you need to buy a present for and putting a budget for the gift next to each person. It may be a good idea to download a budgeting app like TrackMySpend from ASIC’s MoneySmart website or Christmas Gift List from Google Play. These apps will help you keep track of the gifts you’ve bought, how much you’ve spent and how much you have left in your budget for further purchases.

2. Online shopping is not naughty, but nice.

With your carefully prepared list in hand, it’s time to hit the shops, right? Not necessarily. Visiting the stores makes it much more difficult to resist the temptation of buying things you don’t really need. And a trip to the shops can often be an expensive exercise in itself – you’ll probably need to pay for car parking, festive season snacks, not to mention plenty of energy drinks to keep you going. Shopping online can be an excellent way to save!

In order to maximise your savings, try doing a web search for discounts or coupons that you can use for the specific gifts you want to purchase. If you Google the item itself, you can often find several vendors and choose the least expensive – but make sure you include shipping costs when you are comparing prices and check the delivery period.

Social media is also a good way to grab a bargain, as retailers will often offer exclusive discounts to loyal followers. Simply look up the social media sites for your favourite brands and see what they have on offer.

3. Collaborate with family and friends.

If you ask most people, they’ll tell you they prefer quality over quantity when it comes to receiving gifts. If you can’t afford to buy an expensive item, then why not consider pooling your resources with some other family members? This could potentially save you a lot of money and at the same time, ensure you give great gifts that are genuinely appreciated.

Many larger families choose to take the Secret Santa option to reduce costs at Christmas. Rather than spend a lot of money buying an inexpensive (and probably useless) gift for each and every family member, consider putting everyone’s name in a hat and drawing one each. This will allow you to spend your budget on one decent gift, rather than risk overspending by trying to get a little something for everyone.

4. Buy your gifts wholesale or in bulk.

Everyone wine connoisseur knows that buying one excellent bottle of wine from the local bottle shop can be a bit expensive, but a whole case of the same wine can bring the price down considerably, particularly if you go direct to the supplier. Great wine can make the perfect gift for some people, but of course if you have many people to buy for and would rather not give alcohol, there are many kinds of gifts you can buy wholesale direct from the supplier or discounted in bulk.

Some ideas could include scented candles, body lotions and bath oils, t-shirts and caps, diaries and stationery sets, jewellery, exotic tea or coffee beans, glasses and tableware, artwork and ornaments, chocolates and sweets, lipsticks and make-up, perfume and aftershave – the list is literally endless! Simply go online and search for bulk suppliers of the kind of items that will make great gifts for your particular friends and family members.

5. Save on interest for bigger gifts.

If you plan to use credit to purchase your Christmas gifts this year, take a close look at your credit card statement and check how much interest you’ll be paying on your purchases. If your credit card interest is high, consider looking for an alternative card that offers a lower interest rate. You may even be able to find a card that offers you an interest-free period on a balance transfer from your existing card, so you could end up saving yourself some money there too.

If your Christmas Shopping List includes some big ticket items this year – perhaps it’s a new jet ski, family boat, a new car or even an overseas holiday – then talk to us about the most cost-effective way to finance your purchases. There are many options that could end up costing you much less in interest than a credit card, with flexible repayment terms that could help to make your purchase more affordable. Our job is to help you find the most suitable option available considering your personal financial circumstances and goals, so give us a call today.

No doubt you want the rent to start flowing in so you can pay off your mortgage, and to have a smooth and stress free time as ‘landlord’. If that’s the case, it’s time to start looking for good tenants!

Did you know that better landlords attract better tenants? It’s pretty simple really. When you consider your rental property is a business, then your tenants are your customers. You’re providing a service, and they are paying for that service. Wouldn’t you want to keep your best customers for as long as possible?

The first thing you need to decide is if you want to be a “do-it-yourself” landlord, or go down the path of hiring a property management company. There are benefits to both options, but if you are a new “do-it-yourself” landlord, here are a few tips on how to be a great landlord, and in turn, keep your renters happy, for longer!

Welcome them in style

As the saying goes, first impressions last. As your new tenants move in, it’s a great idea to make the process easy and seamless for them from the start. Why not write them a welcome letter? Leaving your tenant a brief note, as well as echoing how happy you are to have them, will set the tone the relationship. Remember to include your contact details!

You could also consider stocking the bathrooms or kitchen. This could be as simple as buying some soap or tooth paste for the bathroom, or some dish washing detergent for the kitchen. Such a small investment can really make a difference to those first few days in a new place.

Ensure both parties understand the lease

To build a harmonious lease/lessor relationship, it’s important that you are both on the same page from day one. To ensure this is the case, it’s always a good idea to walk your renters through the lease. By walking your tenant through the lease it provides the opportunity to answer any questions they may have about any of the clauses in it. This helps to build trust, and importantly, makes it easy for both parties to follow the lease guidelines.

Whilst it is important to have a collaborative relationship with your tenant, at the end of the day, it is a business relationship. If a problem is to arise, it’s vital to follow the guidelines outlined in your lease – as that’s what everyone signed! This way, should they have any objections, you can make it clear that you are within your rights, or vise verser.

It’s also advisable to keep electronic copies of everything – receipts, invoices, bills. You never know when you may need to refer to them down the track.

Be professional and available

It might sound like common sense, but dressing neatly, presenting yourself well and responding promptly can go a long way to keeping your tenants happy!

Ultimately, if your tenants need to talk to you, then you need to be reachable. Tenants should always be provided with multiple means to contact you. Plus, if there was a leaky pipe, you would want to know about it before real damage was done.

Whenever a tenant calls or emails you, be sure to respond as soon as possible. Remember any interaction with your tenant is like a business interaction, so it’s important to think of what you would expect from a business – efficiency, accessibility, approachability. If you know you are going to be away, tell the tenant that you may not be able to respond as quickly.

Be a human

We need to remember that tenants are people too. Good landlords exhibit all the traits that form a good working relationship – open and honest, transparent, good communication. Showing empathy, exercising compassion and making sure you listen to your tenant’s concerns can really go a long way.

If you want to be a good landlord that attracts tenants who stick around, it’s also vital that you are respectful of their privacy.

A good landlord is consistent. A lot of frustration and miscommunication can occur when rules and decisions are changed on a whim, or without reasoning. It pays to be reliable, helping to build trust and understanding.

By following these easy tips, you are on your way to being the best landlord your tenants have ever had! If this all sounds like too much hard work, get in touch with us and we can refer you to a property management company.

With interest rates so low, if you are thinking about purchasing an investment property now is a good time to talk to us about it. It’s also a great time to look at any existing investment loans you have, to determine whether they are still the most suitable for your investment needs. Why not give us a call?

The good news is you can capitalise on their eagerness to sell, and that makes the start of the 2017 a great time to find a genuinely sharp price for your new car!

But, to snap up a great car deal in the New Year, you need to be prepared. Here are our steps to help you get ready for the New Year car sales and ensure a smooth ride towards owning your new car.

Research

As with all big investments, you need to do your research before you even consider getting behind the wheel for a test drive.

Start by thinking about the make and model you would like. Consider what your plans might be for the next year or so. Will you have another child? Do you need a certain car for your line of work? It’s also worthwhile considering how you will use the car. Do you need good fuel consumption? Will you take it off road?

There are many factors that can influence you towards a certain make or model – car insurance costs, resale value, warranty and more. Being informed can make the process of test drives and getting your finances in place a lot easier and quicker, as you don’t waste time of cars you know don’t suit your needs.

There are loads of resources out there that can tell you about your ideal car. Why don’t you check out the manufacturers’ website, online reviews, or reliability surveys?

Make plans for your old wheels

What you decide to do with your old car is important when we consider how you are going to finance your new car. If you are relying on the funds from the sale or trade-in of your old car, you need to decide on this before we can help you arrange the finance of your new purchase.

Whilst trade-ins are convenient and generally very straight forward, you don’t always get as good a rate as you might should you go down the private sale path. Either way, knowing how much you have to play with from your old car will help get your new car finance in place.

Get your finance sorted

In most instances, you are better off arranging your own finance through a broker, rather than going through the car dealer. Often car dealers will offer you “amazing deals” on the day that may end up costing you more in the long run, so it pays to have your buying power sorted before you head to the car yard. Plus, having your finance pre-approved also gives you a solid bargaining position, should you need it!

There are loads of different ways you can finance a new car. You can:

• Get a car loan: This is a common, straight forward option that’s great for most people.
• Take out a lease: A lease differs to a car loan in that the lender retains actual ownership of the car.
• Use the equity in your home: If you own your home, you could consider refinancing your home loan to use some of your equity to pay cash for a car. Or you could use your redraw facility if you have been overpaying.
• Get a chattel mortgage: If you have a company, business partnership or are a sole trader, you can use a chattel mortgage to buy a vehicle provided it is primarily used for business purposes.

We can work with you to determine the option that is most suitable for you, then we’ll do all the legwork to get your finances sorted – so you are ready for the test drive!

Test drive before you buy

Once you have your preferred make and model in mind, and you know how much you can afford to spend on the car, you can go ahead and start testing them out.

It’s always a good idea to take someone with you for a second opinion, and if possible, for you choose the test route (rather than the usual one the car salesperson uses). Take your time, test out the various features of the car, and use the opportunity to ask any questions you may have.

Check the price and inclusions

Whilst it may sound great, look great and drive well – it always pays to shop around. Why not take a look at the same car at a few different dealerships?

It is hard, but try not to get sucked into those ‘one day only specials’ at the car yard, as usually you can get a similar special on another day once you are more informed.

Car dealerships are required to quote in full. Make sure you are being quoted for everything – registration, fees, stamp duty, etc. It’s also worth being aware of any ‘extras’. This can include leather seats, tinted windows, extended warranties, etc. If these are not part of the standard model – they will cost you more!

And then you are done, nearly!

Congratulations, you are a happy owner of a new car. Once you have found the right car, don’t feel pressured to sign anything until you are 100% happy. Check all the paper work, and make sure all the details are correct, to your expectations, and complete. We can help you with this if needed, just give us a call. Finally, before you drive your car out of the yard make sure you have car insurance – imagine having a bingle on the way home from the lot!

If you’re planning on buying a car, talk with us about which option will be most beneficial to your financial circumstances. Just give us a call, we’ll be happy to talk you through all of the car financing options available for you.