Empower Blog Property & Financial Investment

RBA Rates Decision – March 2011

The cash rate remained on hold again this month as the RBA awaits more critical data on the performance of the economy before looking to adjust the cash rate. Most economists expect further rate rises in 2011, with many tipping an increase in the cash rate of around 0.5% over the course of the year. Events in the Middle East region could play a ...

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It’s Mortgage ‘Sale Season’

Over the last month, we are seeing signs from the lending sector that they believe their costs of funds are going to improve in the coming years. (Margin = the difference between what costs lenders source money for and what they on-sell it for – i.e. Profit margin) Cheaper costs of funds means one of two things: 1 – Increased mortgage len...

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So when is the best time to buy?

It’s a well-accepted theory that buyers shop in spring right through to Easter – and then the cooler months in Melbourne take hold and buyers slow down – but is this really what happens? The correct answer is that the season is only one tiny factor in what dictates property buyer and vendor behaviour. Economic outlook, suburb, location, go...

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Property — Everyone is an Expert

You have just been off to see your GP who diagnosed a problem, so you’ve being referred to a specialist who’s going to help you.  You agree without any hesitation as you want to get back to full health. You tell a few people about your situation and they provide support and the odd person some advice, but you know inside you are going to li...

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$350 Surplus Cash per week could equate to Millions

This month we focus on how you can use surplus cash of $350 per week to potentially control an investment property worth $450,000. It’s all in the numbers….let’s take a look. Surplus Household cash $350 per week after expenses, commitments etc. Purchase Price $450,000 Estimated Purchase Costs $22,500 (5%) includes stamp duty, set up c...

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Higher LVR’s Back in Play = Good News for First Home Buyers

Over the past few weeks we have seen several lenders adjust their Loan to Value Ratio (LVR) to allow for more First Home Buyers and Investors take on higher levels of lending against the security of the property they are purchasing.  There are some lenders who are in the 100% lending space, meaning that the borrower only needs to find approx. 5% t...

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RBA Rates Decision – February 2011

As unanimously tipped by all forecasters and commentators, the RBA chose to leave the official cash rate on hold this month at 4.75%. Although the majority of sentiment is that the cash rate will move higher over the coming year, if our economy and the global economic recovery continue to build momentum. The consensus on the flood in Queensland ...

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Predictability Investing — My Essential Ingredient

So you have some surplus income coming into your household and you don’t know what the best use of this money is? You’ve got choices: Spend it Save it Put it on the Mortgage Payoff debts Use it to borrow more to Acquire another appreciating Asset (Gear or Leverage it). The article is going to focus on the last point, but what...

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Why is Money Planning Important?

Imagine for a moment that you have decided that you want a new Home. However, to this point you haven’t thought about what you want the home to look like, how many bedrooms, living areas, or outdoor spaces it should have, how much it might cost, or how you are going to pay for it. How likely do you think it is that you will get what you want whe...

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A Million Dollar Plus Call

You’ve talked about it, but you are just unsure about what's the right decision? For some it’s do we: 1. Buy another investment Property 2. Hold the existing home and turn it into an investment property and buy the new home 3. Sell existing property to buy an upsize property or reduce debt 4. Sell our current home and investment...

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Can we Predict the Future?

It’s crazy to think that anyone can predict the future, but plenty of people are paid good money to try: Economists, Weather Forecasters, Fortune tellers, Treasury, Technology companies, etc. Even though no one can predict the road ahead, it’s absolutely vital that we pay attention to what lies ahead of us. If we look at the future from a pe...

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Did You Make Any Headway To Retirement Last Year?

A new year has arrived and it’s usually this time of the year that one reflects on the past year and reviews the good, the bad and the ugly. A lot of great things happened for me, my family and business in 2010 and very little bad news came our way. For most of you the ugly might have been Collingwood winning the flag, but for me that event was o...

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RBA Cash Rate & Property Outloook for 2011

For those not in the know, the RBA board does not meet in January, so the first cash rate decision will be at 2.30pm on Tuesday 1st February, 2011. In terms of the cash rate forecasts, there is a real mixed bag out there in terms of predictions of where the cash rate might be between now and the end of 2011. There is very little, if any support ...

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