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Mortgage News
Contact:
Allan Faint - ASSIC 390540
Tel:
0362315255, 0407316648
Fax:
0362312455
Email:
allan.faint@hfca.com.au
Web:
www.hfcahobart.com.au
Address:
Home Finance Centre Hobart
Building Selection Centre
313 Liverpool St Hobart
SUMMER 2014
1. The heat is on in the property market
2. Buying property - plan your attack
3. Make 2014 your year
4. Fighting fit
5. Super healthy & super on flavour
6. Economic wrap
Welcome to our summer newsletter. After a mild spring, and a wet start to summer, the holiday season is almost upon us. Hopefully we will soon get some beach weather.
Spring in Tasmania continued the years steady growth in sales and prices, keeping bricks and mortar, a firm favourite among home owners and investors. The market in Tas has continued with a sustainable growth, unlike the big increases of some areas on the mainland. The low rates are expected to continue and will assist with our market. Special variable rate deals in the low 4's along with LMI premium offers will also assist. My main concern is a lack of First home buyers, especially those who dont want to build. The impost of needing government stamp duty, along with in most instances, a savings history, a deposit and the negative media reports, I think have many believing buying a home is too hard, even here in Tas where our home prices are much more affordable. There are options that can make a purchase possible, drop in and ask, I may be able to help with the planning, will cost you nothing. If you're looking to crack the market this summer, read on, for some great tips on turning your property aspirations into action.
The $30,000 FHOG offer reduces to $20,000 on the 1st of January 2015. If you need the $30,000, build contracts have to be signed prior to the 1st.
Between the 24th of Dec and the 5th of January I will only be available by appointment. I will also be away coaching between the 11th and 15th of jan, only contactable by phone or email.
We've also got some great suggestions on how to make 2015 a year to remember as well as making the most of the summer months; financially, physically and festively. A great start to the year is The Hobart Summer Festival, especially the Taste of Tas which is something those interstate should try at least once. So anyway pour yourself a cool drink, put your feet up and enjoy the read.
PS. dont forget to down load my free Home Finance Centre Hobart, iPhone and Android apps
Wishing you all the very best for the New Year.
Sincerely,
Allan Faint
Director / Mortgage Broker

This summer is expected to be a hot one for the property market. With many economists predicting the official cash rate to remain low for some time1, this summer could be a great time to consider a property purchase.

Following the Reserve Bank's 15th consecutive month holding the official cash rate at 2.5% in November 2014, Ninemsn Finance reported it was widely expected a rise in rates would not now come until mid-2015.2

Meanwhile, Fairfax's Domain Group released its State of the Market Report for the 2015 financial year on September 18, predicting that Sydney's median house price will lift between 5 and 7 percent during the 2015 financial year, while Melbourne prices are predicted to rise between 3 and 5 percent. While still a strong growth prospect, these numbers are around half the rate at which prices grew for the 2014 financial year, indicating prices may present more value for buyers in the coming year.

Over the years, well-selected property has certainly proven to be a strong asset choice, with values growing over time. Research by ASX and Russell Investment's2 for example, recently showed that residential property delivered more steady gross returns over the 20 years to December 2013, compared to shares, returning 9.9 per cent per annum. The current high demand for property is certainly highlighting the investment potential of real estate, recognised by investors across the country. But with strong demand, comes strong competition, so it's important to be on the front foot when it comes to shopping for property this summer.

1http://www.finder.com.au/press-release-cash-rate-holds-but...

2http://www.asx.com.au/documents/resources/russell-asx-2014-long-term-investing-report.pdf

Get organised: A good first step is to go through your financials and goals for your property purchase, so that you can get a good idea of your borrowing power and obtain pre-approval for a home loan, so you are ready to take action. Contact us to arrange an updated valuation for your property so you know exactly how much you will be able to borrow.

Build your knowledge: Next, do your research around good value areas to buy. As well as price growth potential, you'll also want to consider proximity to transport links, schools and business districts - as well as convenience. These factors will affect your resale value and the amount you'll be able to rent the property out for if you're buying to invest.

Hit the pavement: With the sun shining, summer is a great time to visit a lot of open for inspections and really shop around to get the property you want. It's also typically a good time to negotiate a good property price - with many potential buyers on vacation, the market may not be as crowded as in spring, and vendors will often be keen to settle a sale quickly before the new school year.



This may be difficult for those who are keen to share the highlights of their holiday on social networking sites. However, while you might think you're only sharing this information with friends, you never know who is following you online and how they may use that information. On Facebook, for example, if your friends comment on your photos or status, this often appears in their own newsfeed, quickly multiplying the number of people who can view your updates. Try to contain your urge to brag - at least until you’re back home!

As we move into yet another new year, it's important to take some time to take stock of the year that was and what you want out of the year ahead. The start of the year marks an ideal time to review your personal finances, and with many of us fortunate enough to have some time off, summer can provide the perfect occasion to nut out some resolutions and a roadmap for success.

Plan for success
"If you fail to plan, you are planning to fail." No true success comes without some solid planning and goal setting. Take some time this summer to think about your financial goals - both long and short term. A great way to stick to any resolutions is to keep them front of mind. Set a monthly reminder to review and track your progress or create a 'vision board', using a piece of cardboard and some creative licence. Keep it somewhere you will see every day, to help you stay focused.

Financial health
No financial commitments should be set-and-forget. As you head into the new year, it's a great chance to review your home loan arrangements and any other financial commitments. Ask yourself, how are you managing your loan repayments? Do you think you could be paying more off your mortgage? Or perhaps you're finding your current set-up difficult to maintain? A different loan or repayment set-up could be a simple but effective way to improve your financial circumstances in 2015.

Anticipate change
Some things in life are impossible to plan for, but others not so much. Major life changes and milestones can impact our finances significantly, but by being prepared, we can minimise the risks and disruption. Take some time to consider whether any major events could interrupt your financial arrangements in 2015. A new addition to the family? A change in employment? Even if it's something a couple of years away, by planning now, you'll be much better placed to handle any bumps in the road.

Eye for opportunity
The beginning of the new year represents a great opportunity to assess the prospects for new ventures. Would you like to buy an investment property this year? Are you dying to renovate or head overseas? Think about your aspirations and how you might be able to achieve them. If you have an existing home loan, chances are you may have already acquired some equity that can be used to fund a new home or an investment property - or renovations and holidays. But you'll never know if you never take the time to find out.

Why not give us a call today to discuss your financial goals for 2015 and how we can help you get there.

As summer comes into full swing, there is no better time to get out and about. Why not take advantage of the weather and improve your health by trying one of these new fitness trends?

Paddle-boarding: If you haven't tried paddle-boarding yet, it's a great way to improve balance and leg strength - and you don't have to be a pro surfer to succeed! You can hire a board at most beaches and lakes, and if you're feeling especially adventurous, you could even try paddle-board yoga.

Obstacle courses: You may have noticed that military-style commando courses, from Tough Mudder to the Spartan Race, are popping up everywhere lately. Challenge yourself and recruit a group of friends to train with you - just don't cut yourself on the razor wire!

High-intensity interval training (HIIT): Have you seen those people at the gym hurling ropes across the room and lugging sandbags? This is HIIT, a new intense workout designed to give you great results in just 20 minutes. Come summer, many gyms may offer these boot camp-style classes outdoors - ask at your local fitness centre.



As lovely as it is to enjoy the outdoors, keeping cool in the summer months is high on the agenda - especially if you've been busy exercising. Try some of these natural ways to keep cool this summer:

  • Freeze fruit: Pop some fruit, such as watermelon and grapes, in the freezer before eating them. A delicious, healthy way to keep cool
  • Cool hit: Try storing your body lotions in the fridge for quick, cool foot relief
  • Close the curtains: Air conditioning doesn't have to be your only option for keeping cool during the warmer months. Keep out the heat by closing your curtains. But remember to open windows when it is cooler outside to make the most of a cool breeze
  • Cool as a cucumber: Feeling red and puffy? Slice of cold cucumber can do wonders for relieving post-exercise heat and heat-induced head tension.

 

Looking to start the new year off with a health kick? Check out these tasty super foods to inject some extra nutrients into your diet, and ensure you're looking and feeling your best in 2015.

1. Quinoa
This trendy new carb substitute is one of the best whole grains you can eat, being high in protein and fibre and a naturally good source of iron. It keeps you full for longer so it's great for lunch to help you avoid afternoon sweet cravings - try in a salad with kale, grated carrot and a tahini dressing.

2. Walnuts
Nuts may be a healthy snack, but in terms of nutritional benefits walnuts actually have the most to offer. Just 30 grams a day helps to reduce cholesterol and boost your intake of healthy omega-3 fats - try them in a fresh summer salad with spinach, pear and lime juice dressing.

3. Blueberries
These tasty fruits are given their vibrant colour by flavonoids, natural compounds which help preserve memory function. Their high water content means they also keep your skin hydrated - try them on soy and linseed toast with banana and honey for a healthy breakfast.

4. Asparagus
Crunchy green asparagus spears are one of the best veggie sources of folate, a B vitamin that boosts your supply of 'happy chemicals' dopamine and serotonin. This makes them perfect for boosting your mood and energy - try them with spelt spaghetti, lemon rind and olive oil for a fresh summer pasta dish.

5. Coconut oil
This heart-healthy antioxidant can help your body in a myriad of ways, including boosting thyroid function, aiding digestion and helping your body kick colds and other illnesses quicker. Add a tablespoon to whole wheat pancake mix for a tasty breakfast treat.

6. Salmon
Oily fish is great for reducing your risk of heart disease, and salmon is a particularly good choice as it's high in protein and vitamin D. It's also really easy to cook - try roasting in foil with garlic, cherry tomatoes and lemon for a healthy family dinner.

7. Sweet potatoes
These are a good substitute for regular potatoes, being high in vitamins A and C, and loaded with calcium and potassium to help maintain bone density as you get older. For a jacket potato dinner, they are great stuffed with ricotta, kale and pan-fried garlic slices.

2014 delivered an assortment of economic data and forecasts, some positive and others not so positive, but as we move into 2015, the overarching view is that Australia's economy remains relatively healthy and the envy of many of our international counterparts.

Both consumer and business sentiment dipped and climbed over the year. The Westpac-Melbourne Institute Index of Consumer Sentiment3, for example, plunged 6.8 per cent in the aftermath of the Federal Budget but gained ground between June and August, rising by 5.9 per cent. But the Index recorded another surprising dip in September, dropping by 4.6 per cent from 98.5 to 94.

Similarly NAB's diffusion indicator for business confidence4 jumped to a post-election high in July, lifting to 11 points from 8 points in June. However, the index dropped back to its June level again in August. This points to some ongoing uncertainty in the outlook for business conditions, but in any case, the index is well up on its 2013 levels.

On the employment front, indicators were equally inconsistent, with the national unemployment rate dropping from a 12 year high of 6.4 per cent to 6.1 per cent in August5, the largest monthly improvement on record. However, this followed a spike in the unemployment rate just one month earlier. The ANZ Job Ads series6 was slightly less erratic, gradually strengthening over the course of the year. As reported in September, the series was up 8 per cent for the year to August.

The property market remained a hot spot to be across much of the country in 2014. The Australian Bureau of Statistics reported that there were $28.6 million of housing finance commitments in July 2014 - an 18.2 per cent increase on the year prior7. Even the cooler months of winter couldn't dampen demand for property. According to the August RP Data CoreLogic Hedonic Home Value Index8, capital city dwelling values moved 4.2% higher over the three months to the end of August, the strongest capital gain over the three months of winter since 2007.

Despite a slowdown in China, the end of the mining construction boom and ongoing uncertainty in the global economy, Australia's economy continues to grow, albeit at a more sluggish pace. An economic outlook released by BIS Shrapnel9 in September forecasts the economy to operate at below full capacity over 2014/15 with a pick up and gradual return to long-run average growth to come through in 2016, when non-mining business investment strengthens. Of course, the upside of slower economic growth is low interest rates, which are expected to remain low for some time.

If you're interested to find out more about the outlook for the property market in 2015 and how you can best take advantage of the current climate, give us a call today.

3http://www.westpac.com.au/about-westpac/media/reports...

4http://business.nab.com.au/monthly-business-survey-august...

5http://abs.gov.au/AUSSTATS/abs@.nsf/mf/1345.0?open...

6http://www.media.anz.com/phoenix.zhtml?c=248677...

7http://www.theadviser.com.au/breaking-news/30767...

8http://www.rpdata.com/research/capital_city...

9http://www.bis.com.au/reports/economic_outlook_r.html


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Disclaimer. This newsletter does not necessarily reflect the opinion of the publisher. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, authors nor their employees, can be held liable for any inaccuracies, errors or omission. Copyright is reserved throughout. No part of this publication can be reproduced or reprinted without the express permission of the publisher. All information is current as at publication release and the publishers take no responsibility for any factors that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this newsletter as a substitute for professional advice.