On Tuesday the 7th of November 2023, the RBA decided to increase interest rates by 0.25%, which has taken the cash rate to 4.35%. This increase in interest rate has had an effect on all borrower’s, capacity to borrow. As interest rates climb, your ability to borrow is reduced- so what are some of the things you can do to limit the damage to your borrowing capacity: Choose your lender carefully: Most lenders will have you pre-approved for a certain loan amount at a certain purchase price. If interest rates…
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The Top 25 Brokerage will retain its brand and team as it moves to integrate with the major financial services business Viridian Financial Group. Smartmove Professional Mortgage Advisors (Smartmove) – one of the Top 25 Brokerages in Australia – has announced it will become part of the financial services business Viridian Financial Group Limited (VFGL) after forming a “strategic integration”. Read more from the Adviser
RBA CASH RATE RAISED TO 3.10% At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.10 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.00 per cent. Inflation in Australia is too high, at 6.9 per cent over the year to October. Global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role. Returning inflation to target requires a more sustainable balance between…
Figuring out whether buying your commercial premises through your self-managed super fund (SMSF) is an option that’s suitable for you is imperative to the success of your investment. There can be many gains in purchasing commercial property through your SMSF, including creating a certain level of freedom by smart use of resources. It frees up capital for the business owner. They are unlocking super to do more for them. Further to this, the property is protected against insolvency. Depending on the type of business, this can be particularly appealing. There’s…
APPROVED changes to the NSW property tax system will give first-home buyers the choice between paying an annual property tax or stamp duty. Changes: The NSW Government has now passed legislation allowing first-home buyers purchasing properties of up to $1,500,000 to choose between paying an annual property tax or stamp duty. Under the scheme, first-home buyers will be able to choose between: (a) Paying the usual amount of stamp duty based on the ‘dutiable value’ of your property or (b) Paying an annual property tax based on the unimproved land value of…
At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 2.60 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 2.50 per cent. The Board is committed to returning inflation to the 2–3 per cent range over time. Today’s increase in interest rates will help achieve this goal and further increases are likely to be required over the period ahead. The cash rate has been increased substantially in a short period of time. Reflecting this, the Board decided to increase the cash rate…
As was widely expected, the Reserve Bank of Australia (RBA) today increased the official cash rate by 0.50% to 2.35%. This brings the total of increases made since May to 2.25% as the RBA continues to battle a very stubborn inflation foe. In making this latest increase, whilst the RBA have had a close eye on the spiraling cost of living and falling house prices, they have made their intentions to prioritize controlling inflation very clear. Lenders can set interest rates independently of RBA movements, and their responses to this…
Proposed changes to the NSW property tax system will give first home buyers the choice between paying an annual property tax or stamp duty. Proposal: The Government intends that legislation to establish the property tax will be introduced into the NSW Parliament during the second half of 2022 – With scheme commencement scheduled for Early 2023. Under the proposed scheme, first home buyers will be able to choose between: (a) Paying the usual amount of stamp duty based on the ‘dutiable value’ of your property or (b) Paying an…
I remember when I bought my first home and within a few months there was a rate rise. I freaked out and was forced to redo my budget. Fortunately, it meant I simply had less play money for nights out. I was 24 so the extra $25 a week in loan repayments was a lot to me. Fast forward to the GFC when rates went up to over 8% and then rapidly started to decline as the economy came to a halt. I had out of fear locked in at…