Entries by admin

Global Monetary Tightening

Australian banks’ “continued reliance” on wholesale funding from overseas institutions may see pressure on local interest rates. One reason is “global monetary tightening”, especially given the European Central Bank (ECB) is starting to wind back the massive monetary stimulus which it pumped into the European economy since the global financial crisis. In addition, Fitch expects […]

2018: The year to set up your financial future

Based on the expectations of most economists, mortgage holders have between nine and 18 months of the current record low-interest rates before the Reserve Bank will begin the process of moving them up towards more long-term historical norms. Despite some projections from economists that the RBA will move rates up mid to late 2018, the […]

Commercial property behaved mostly as expected in 2017

Yields continued to firm, tenants were back in the market and the office sector did particularly well, benefiting from business growth and, in the case of Sydney, withdrawal of stock. Australia quietly moves towards its 27th year of positive economic growth. With high levels of transparency, a comparatively stable government, strict planning controls and strong performance […]

Most Australians indicate their biggest life goal is a financial one

Most Australians indicate their biggest life goal is a financial one, but many admit failing to plan is a roadblock. Popular dreams and aspirations Interestingly, nearly half of all Australians recently surveyed said they dreamed about the future every few weeks, with people’s major life goals including things such as: Full financial freedom and independence […]

How much is it costing you for being loyal to your Bank?

What’s your bank loyalty worth? The better part of $5 billion a year. Well that, of course, is what it’s worth to the banks – what it’s theoretically costing existing customers who don’t shop around. What it quantifies for the first time is how much more banks are prepared to discount interest rates for new […]

What are the Best Performing Property Markets over the past decade?

Sydney and Melbourne regions have experienced the strongest value growth over the past decade while the other capital cities have generally seen comparatively moderate value increases. When analysing the regions with the greatest value increases, the top 10 regions nationally are all located in either Sydney or Melbourne. This highlights how much stronger value growth […]

Ask for a better interest rate on your mortgage

Almost half of all borrowers fail to ask for a better interest rate on their mortgage. Of almost 1300 homeowners with a mortgage that were surveyed last month, 9 per cent didn’t know they could ask for a discount, while a further 36 per cent simply did not bother to ask. For a lot of people, it’s […]

Stable Economic Conditions Continue

Growth in housing debt has been outpacing the slow growth in household income for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Credit standards have been tightened in a way that has reduced the risk profile of borrowers. The low level […]