End of financial year…already!
The year started off with plenty of buoyant activity in the real estate sector whilst home values started to settle and interest rates staying at record low levels.
The Reserve Bank (RBA) has kept rates on hold for June - this is good news as it means the country (financially) is still working and moving in the right direction. There is, however, lots of popular opinion that a small interest rate rise will actually help the economy move forward as this could activate some additional spending by those who have taken the ‘wait and see’ approach and just kept their money tied up in term deposits rather than put it into the system and help fuel the economy.
There is a counter argument to this, with some believing further rate cuts by the RBA will in fact make things worse, with those ‘wait and see’ people holding off even further from spending in the hope rates continue to fall OR could make some business sectors ‘panic’, interpreting the RBA’s actions of consistent rate cuts as a warning that the economy is in real trouble, so best to be prudent and not spend or expand. At the end of the day, plans still have to be made, bills still need to be paid and money still has to be spent or invested – life goes on. It’s about individuals and businesses taking a common sense approach!
We have received lots of feedback applauding our explanation of real estate bubbles and lender assessment criteria in recent newsletters - confusing topics for most, but the main objective for us is to keep our borrowers informed as best we can whilst remaining impartial to individual circumstances and opinions. Not an easy thing to do in many cases.
We know there is a better home loan deal out there for you! Lots of borrowers retain the status quo rather than
seriously looking at their finance options. Please feel free to give me a call on 0438 041 111 for a confidential discussion about saving some real money on your home loan.
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
Peter Vinci - 0438 041 111