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Smiling Faces in Real Estate 23 January 2009 For the first time in a very long time, there is optimism amongst Real Estate Agents on the Central Coast. Two major factors are contributing: The increased first home buyers grant has triggered a lot of activity in the segment up to $350,000. One agent in Umina quoted that he already sold 14 properties for the month compared to averaging 10 for the whole month last year. This flows through to the more expensive end of the market – those selling their property at the lower end of the market want to life somewhere as well and a Terrigal agent told me their office sold 6 properties in the $500,000 to $600,000 price range just last week. The Government gets generous 15 October 2008 The Australian Government has announced a First Home Owner Boost, which supplements the NSW Government funded First Home Owner Grant Scheme. According to the announcement from the Commonwealth:
Interest Rates are falling: Monday, 13 October 2008 The Reserve Bank has lowered the official interest rate by one whole percent. The reaction by all major lenders has been encouraging, most passing on 0.80% with one going to 0.90%. This leaves us with the best variable rate loan at 7.59%, a much more acceptable rate then the 9.61% average Standard variable of the four major lenders only a few months ago. But it gets better. The best 3 year fixed rate is now 6.99% and some economists are predicting a further cut in the official interest rate by 0.50% in November Anyone who has been crucified by the likes of Macquarie Mortgages or RHG should give us a ring to see if we can give them some more relieve from their exaggerated home loan rates.Increased activity in the Sydney Property Market Monday, 29 September 2008 Auction results this weekend have been rather promissing. I don't like to look at clearance rates as they are no longer meaningful. Let me explain: A couple of years ago, legislation was introduced that put an end to the spoof bidding that used to go on where every friend, cousin and neighbour of a vendor would put a bid in, hoping to suck in a genuine bidder in the process. The new legislation requires any bidder to be registered. Since then, only properties that actually have registered bidders go to auction, all others are withdrawn. In this way, clearance rates (the percentage of properties selling at auction) looks much better than what it would have under the old system. The only meaningful number to look at is the actual number of properties sold at auction. Now, a couple of months ago, that number hit an all time low of 59 for the whole of Sydney and the Central Coast. That is not a lot if you look at the number of real estate agents that the commissions thereof has to feed. Since then, they have been slowly picking up. 70 properties, 80, 90, two weeks ago 110 and last weekend 184. Now that is a significant change and could be the first sign of a turnaround in the Sydney property market. The scary thing is that if demand comes back, there is very little supply as developers are suffering and very few new developments are in the pipeline. The Tide has turnedSaturday, 6 September 2008 During the week, the Reserve Bank announced the first cut in interest rates in nearly 7 years. And as a sign that there are many more to come, more very low fixed rates have been made available by some of our lenders. The pick today is a three year fixed rate at 7.99%, that is some 1.30% below the average standard variable rate. Fixed Rates are Tumbling! Tuesday, 26 August 2008 One of our lenders has today anounced cuts to their fixed rates of up to 0.70%. Their best 3 year rate is now 8.19%, down 0.50% from last week, their best 5 year fixed rate is 8.19% as well, a whopping 0.70% lower. More Good News on the rate front Thursday, 14 August 2008 Ralp Norris, in a radio interview today, stated that CBA will pass on at least some, if not all of any upcoming cut in interest rates by the Reserve Bank. Not only is it good to know that a rate cut would be passed on, but more so that he seemed to just about take it for granted that there will be one. Interest rates on the way down! Thursday, 7 August 2008 The Reserve Bank left interest rates alone in their monthly meeting on Tuesday. The subsequent report by the governor was interpreted by many that we may well see a drop of up to 0.5% at the next meeting. Some banks are already reacting by dropping their fixed loan interest rates. By far the best deal today is a 3 year fixed rate of 8.75% which even alows you to make additional repayments and redraw funds again at a later day. Have we seen the top in Interest Rates? Tuesday, 15 July 2008 The minutes from the last Reserve Bank Meeting show that the board members have taken the view that their interest rate rises over the past months are starting to bite and that further rises my not be necessary. These ideas were formulated before most of our Mortgage Lenders decided to increase their rates independent of the Reserve Bank. Many analysts now say that we are unlikely to see another rate rise between now and the end of the year. The Guru thinks that they are likely to be right. We will need to keep an eye on the fixed rates to see when the trend is turning and they start to come down. Your Guru
Who is buying on the Central Coast Monday, 7 July 2008
For the same money they would need to spend to rent an old shack for in Sydney, they can own a lovely, modern place on the Central Coast. Of course that comes at a price in terms of having to commute to Sydney if that is where you earn your living. That is five days of the week.
Definitely worth considering Your Guru |
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There seems to be a bit more activity amongst First Home Buyers. We are seeing young couples who are sick of paying a fortune in rent in Sydney suburbs checking out their options further North. 
On the weekend however, you are only minutes away from some of the best beaches in the world with beautiful white sands, great eateries nearby and some fabulous shopping centres if that is what amuses you.