PROPERTY INVESTOR LANDLORD ECONOMIC NEWS & ALERTS AUSTRALIA/NEW ZEALAND

Thursday, October 29, 2009

RATES TO RISE ON MELBOURNE CUP

RATES TO RISE ON MELBOURNE CUP

Here we go...Reports coming in yesterday are higher than expected for inflation rates and pressure is on the reserve bank to raise rates 25 basis points on melbourne cup day, some are hinting of 50 basis points, with another 25 points rise next month.

Monday, October 26, 2009

INTEREST RATES CONTINUE TO RISE

INTEREST RATES CONTINUE TO RISE

EVERYTIME YOU BLINK THERES ANOTHER BANK RAISING AN INTEREST RATE, 5YR FIXED RATES HAVE ALREADY HIT 8%............
RESERVE BANK OF AUSTRALIA RAISED THE CASH RATE 25 BASIS POINTS THIS MONTH VOICING THEIR CONCERNS ON INFLATION RUNNING AWAY FROM THEM, FURTHER CASH RATE RISES ARE SURE TO COME.

THE BIG QUESTION NOW IS NOT WHEN BUT HOW FAST WILL THEY RISE.

Saturday, October 10, 2009

WILL RBA RATE REACH 10%

THERE ARE REPORTS FLOATING AROUND THAT AUSTRALIA WILL HAVE AN IMMINENT PROPERTY BOOM AND THE RBA WILL HAVE TO RAISE ITS CASH RATE TO 10% TO SLOW IT DOWN.
I PERSONALLY THINK WE WILL HAVE OUR BOOMS IN SELECT AREAS, THERE IS DEFINITELY MONEY TO BE MADE, AS FOR THE INTEREST RATES I THINK THERE'S A STRONG POSSIBILITY THEY WILL SLOWLY REACH 8 OR 9% WITHIN 5 YRS. THIS DOSEN'T MEAN RUN OUT AND FIX YOUR RATE YOU MAY HAVE MISSED THE BOAT, CONSIDER ALL OPTIONS AND SAVINGS AND YOUR INDIVIDUAL POSITION & TOLERANCE.

SA BANK TO RAISE VARIABLE RATE

IT'S JUST BEEN REPORTED THAT THE SA BANK WILL BE RAISING IT'S VARIABLE RATE ON MONDAY THE 12th OCT.

AUSTRALIAN INTEREST RATES GOING UP

That basis for such a low interest rate setting has now passed, the Board’s view is that it is now prudent to begin gradually lessening the stimulus provided by monetary policy.

RBA MEDIA RELEASE
6th OCT 2009
CLICK HERE

NEW ZEALAND ECONOMY REMAINS WEAK

NEW ZEALANDS ECONOMY
REMAINS WEAK DESPITE PATCHY
SIGNS OF LEVELLING,
OCR LEFT AT 2.5%

RBNZ MEDIA RELEASE
10th SEP 2009
CLICK HERE

Friday, October 9, 2009

Investing In Real Estate

Many people know that real estate investing is very lucrative. For that reason alone, will make people want to get their share of the pie. They know that this is a great way to build wealth, not only for them, but they can also pass it down to their future generations.
In addition to having monthly rental income, there are other factors that contribute as to why people invest in real estate. Some of them include:
With appreciation of rental properties, there will be increased value. In turn, this could help with the selling and reinvesting in properties that already have a higher value. Appreciation of rental properties can also make way for an equity line of credit for future use.

Speaking of equity, you as an investor can invest in sweat equity, which involves making improvements to your real estate property. It doesn’t have to be so far out where you end up spending a lot of money.
This can help the value of your property go up faster than it would have if you had not made improvements. So, if you spend $3,000 on cosmetics and miscellaneous items, then the value of the property could be double or more of the amount you spent on improvements.
Being a real estate investor during inflation times is not necessarily a bad thing. Even though rental payments increase during this time, your mortgage loan payments should remain the same. Because of this, you can have an increase in cash flow.
Another thing about inflation is that you can also gain more renters (if you have vacancies) because some people may not be able to secure mortgages during that time. Since you will have a greater demand for renters, the rent will also increase. This is part of the agenda of supply and demand.
Using “Other People’s Money”, or “OPM”, is a good reason for people to invest in real estate. You can find a bank that will secure a loan for you for your real estate investment(s). The better your credit is, the better chance you have of securing a good fixed rate loan with low interest rates.
You can also look at zero-down loans, but that can be more risky. You would have to pay more in your mortgage payments because you didn’t include a down payment. So when the property appreciates, it will benefit you along with the monthly cash flow.
Real estate investing is considered a business. You can use the expenses from it and deduct them from your taxes. Anything that you purchased, had repaired, any fees and anything else related to the investment in question.
Even if you have properties that are out of the regional area where you have to travel, those expenses can also be deducted from your taxes. If nothing else, being able to deduct expenses from your taxes is like a marriage made in heaven.