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	02/Sep/2010 - Housing bubble won’t burst Better than expected retail spending and building approval figures from the Australian Bureau of Statistics cast doubt on the likelihood of a major housing correction, according to national accounting firm Chan & Naylor. “While a housing correction cannot be ruled out, the latest consumer spending and building approvals provide a barometer of overall economic confidence,” said Sal Carrero, Chief Executive, Chan & Naylor. “It is hard to imagine a major housing price correction in an environment where interest rates and employment remain historically low. Mr Carrero said some capital city markets, such as Sydney, continue to experience strong rental growth which will assist in supporting home prices. “Increasing yields on investment property will support investor confidence in the market and indicates there is still value to be had for buyers. The property market continues to offer good prospects over the medium to long-term,” Mr Carrero said. Source: Chan & Naylor top 01/Sep/2010 - Home values stabilise in July After a large 1.0% seasonally-adjusted fall in June, Australian home values changed little in the month of July, recording an increase of +0.1% (up +0.4% seasonally-adjusted). According to the RP Data–Rismark Hedonic Home Value Index, Australia’s capital city home values remained relatively flat in the month of July recording a modest, seasonally-adjusted increase of 0.4% (on a raw basis home values were up only +0.1% in the month). The July results follow a 1.0% seasonally-adjusted decline in the month of June; the first negative movement in Australian capital city home values in 17 months. The slow-down in Australia’s housing market had been long anticipated by RP Data and Rismark and was noted by the Reserve Bank of Australia in its most recent Board Minutes. According to RP Data’s research director, Tim Lawless, the July index results are further evidence that Australia’s housing market has experienced a controlled soft landing after a resounding recovery during 2009. Source: RP Data top 31/Aug/2010 - Downsizers put pressure on prices Retirees as well as people experiencing lifestyle changes like separation, are downsizing their homes and competing with families and first home buyers for properties in the middle price range. Experts say downsizers are pushing property prices up and many will not be let with very much cash after selling up and then buying again. “One problem with downsizing is that, while prices may have risen such that it is tempting to sell and unlock money, the prices for the kinds of properties you might want to downsize to have also risen,” said property advisor Ana Bennet. Source: Herald Sun top 30/Aug/2010 - Auctions bounce back from election Auction results rebounded this week after the subdued results of the election weekend. In Sydney, there were 445 auctions held with 69 per cent producing a sale. That compares well with results from the same weekend last year when 73 per cent of 316 properties sold at auction in Sydney. In Melbourne there were 762 properties put up for auction with 61 per cent selling on the day. On the same weekend last year, 81 per cent of 691 properties sold at auction in Melbourne. In Adelaide, 62 per cent of 34 properties sold at auction this weekend, while just 12 per cent of 50 properties sold at auction in Brisbane. Source: Australian Property Monitors to 25/Aug/2010 - Rates to approach 10 per cent within 3 years Official interest rates as set by the Reserve Bank of Australia will rise by about two per cent to 6.5 per cent and retail standard variable home loan rates will follow and go up beyond 9 per cent within three to four years, according to BIS Shrapnel’s Long Term Forecasts report for 2010-2025. “Labour shortages and a synchronisation of construction cycles will lead to a build-up in inflationary pressures over 2011/12 and 2012/13,” BIS Shrapnel senior economist Richard Robinson said. “The RBA will be forced to respond by raising interest rates to a maximum of 6.5 per cent, which will take mortgage rates back over nine per cent and send housing activity into a controlled downturn over 2013/14.” Source: The Advisor top 25/Aug/2010 - Home buyers shun the high cost of moving Investors and owner occupiers tend to hold houses longer than they hold units. Rpdata’s senior research analyst Cameron Kusher said Melbourne and Sydney have the longest average hold periods for houses and units (9.6 years and 8.0 years and 9.1 years and 7.4 years respectively) whilst Darwin and Adelaide have the shortest average hold periods (4.7 years and 4.0 years and 6.6 years and 6.2 years respectively). According to Mr Kusher, on average the cost of housing in Sydney and Melbourne may be contributing to longer hold periods, especially when higher property prices in these two cities, coupled with the overall cost of moving is taken into consideration. “The strong and consistent value growth in recent years within Darwin, and the relatively more affordable property prices in Adelaide are likely contributors to a greater propensity for owners to sell properties within these cities. Added to this is the cost of stamp duty taxes which can be extremely expensive - especially for homes purchased in prestigious areas. Knowing this, owners of more expensive properties may look to renovate their property rather than relocate,” Mr Kusher said. Source: Rpdata top 24/Aug/2010 - Looking forward to big auction weekend Auction activity was subdued around the capital cities on election day last Saturday but clearance rates nevertheless remained good at around 63 per cent for both Sydney and Melbourne. Next weekend is expected to be a big auction weekend, particularly in Melbourne, Real Estate Institute of Victoria chief Enzo Raimondo said. “There was a low number of auctions this weekend due to the federal election,” he said. “This however has not had any negative impact on demand,” he said, adding that the Institute expects around 740 auctions across Victoria next weekend. Source: The Advisor top 23/Aug/2010 - Fewer homes are being repossessed in 2010 Court orders for the repossession of mortgaged houses and flats are down from numbers experienced in 2008. In Victoria they dropped to two-thirds of the numbers seen during the global financial crisis, with 1906 Supreme Court repossession applications in the last financial year, compared with 3080 the previous year. In NSW there were 571 Supreme Court applications begun in the June quarter. In 2009 in Victoria 321 people were evicted, while 500 lost their homes the year before. Source: The Age   19/Aug/2010 - Homes overpriced by up to 50 per cent Morgan Stanley's equity strategist, Gerard Minack said house prices are a bubble that has raised the level of risk in the economy. Mr Minack argued measures of value - such as house prices compared with rental returns or household disposable income - suggested they were overvalued by 35 to 50 per cent. The property boom has been especially pronounced in Melbourne, where the median house price has nearly doubled this decade. Sydney prices have risen more modestly, including a slump after 2004 before a surge last year. RP Data figures showed a slight fall in June after 17 months in a row of increases. Source: Sydney Morning Herald top 17/Aug/2010 - Rents up again in NSW Rents are on the rise again in Sydney and metropolitan New South Wales. Average rents rose to $410 per week in the June quarter - $10 higher than three months ago and $20 higher than the same time last year, according to official figures from the New South Wales government. Sydney’s vacancy rate is 1.2 per cent, Wollongong’s 1.1 per cent and Newcastle’s 1.6 per cent. The biggest annual rent increases for three bedroom houses over the year occurred in the Local Government Areas of Willoughby (17.6 per cent to $800), Ryde (14.6 per cent to $550) and Marrickville (12.7 per cent to $620). Source: The Advisor top 16/Aug/2010 - Sydney auctions improving Auctions results improved in Sydney this weekend with 384 residential properties listed for auction, up from 344 last week. Clearance rates also improved with 61 per cent selling on Saturday, also up from 56 per cent last week. On this weekend last year, 74 per cent of 227 properties listed for auction were reported sold on the day. Bad weather may have contributed to a slight fall in the clearance rate for auctions held in Melbourne on Saturday. 61 per cent of 555 Melbourne properties that were listed for auction were sold on Saturday, down from last week when 67 per cent of 499 properties sold on the day. On this weekend last year, 70 per cent of 485 properties listed for auction sold under the hammer. In Adelaide there were just 28 auctions with a clearance rate of 54 per cent. In Brisbane, just 22 per cent of 47 properties listed for auction sold o Saturday. Source: Australian Property Monitors   10/Aug/2010 - Mortgage sales grind to a halt Sales of new home loans feel to their lowest point in nine years in June, according to the Australian Bureau of Statistics. Australian housing finance commitments for owner-occupied housing fell 3.9 per cent in June, almost twice the market forecast of 2.0 per cent. Total housing finance by value fell by 1.9 per cent. Finance for construction projects fell by five per cent in June. AMP Capital Investors chief economist Shane Oliver said "It's basically telling us the housing recovery that we've seen over the last 18 months has come to an end, we can't rely on housing construction to continue pushing the economy ahead. Weakness in housing finance would also flow through to weakness in house prices, Dr Oliver said. "It's another reason for the Reserve Bank to leave rates on hold.'' Source: Herald Sun 09/Aug/2010 - Auctions now a 50/50 bet in Sydney Auction results improved slightly this week in Sydney with 6 per cent of 349 properties listed for auction on Saturday selling on the day. Last week 55 per cent of 357 properties sold at auction in Sydney. On the same weekend last year, 68 per cent of 244 properties sold at auction in Sydney. In Melbourne, 68 per cent of 500 properties put up for auction sold under the hammer on Saturday. Last week 67 per cent of 545 auctions held in Melbourne produced a sale. On the same weekend last year, 81 per cent of 438 properties produced a sale. In Adelaide, 53 per cent of 38 properties sold at auction. In Brisbane, 25 per cent of 31 properties listed for auction sold on Saturday. Source: Australian Property monitors 29/Jul/2010 - Mortgage applications on the rise Mortgage applications rose 2.3 per cent in the June quarter, but credit card applications dropped nine per cent, credit agency Veda Advantage said. Veda's latest quarterly consumer credit demand index tracked credit inquiries over the June 2010 quarter. It showed mortgage applications firmed 2.3 per cent compared to the March quarter. But mortgage applications fell 20.3 per cent compared with the June 2009 quarter, as the first home owner grants were wound back, Veda said in a statement. Veda spokesman Chris Gration said the credit quality of mortgage applicants who applied when the Government offered the first home owner's grant had improved marginally. "So there's no sign in Australia of that (US) sub-prime bubble happening,'' he said. Applications for credit cards have been falling steadily for two years, and dropped another nine per cent in the June quarter, compared to the March quarter, Veda added. There was also a 4.8 per cent decline in personal loan applications over the same period. Veda measures the adverse rate of credit, that is the rate of applications with defaults or bankruptcies."During the last couple of years, the adverse rates fell,'' Mr Gration said. "Credit quality got better and it's just started to flatten out. Over the last two years households have adjusted to the tougher economic conditions by being more cautious and people with poor credit quality have stayed out of the market.'' Source: News.com.au 28/Jul/2010 - Card reward schemes not always the best option Collecting reward points for flights and shopping freebies is a waste of time and money for the average credit card customer, researchers say. Some schemes leave consumers out of pocket because the annual fee costs more than what you get back in return. On the flip side, big spenders who carefully choose whether they want flights, cash or shopping vouchers and pay off bills before being slugged the stellar interest rates on rewards cards are reaping benefits. More than 10 million credit and charge cards of Australians are linked to rewards. The loyalty cards account for more than half the market, and typically attract the highest interest rates and an annual fee. The latest report follows a separate survey by consumer group Choice that warned cardholders spending $1000 a month were taking on average more than five years to earn enough points for a $500 digital camera, and needed to splurge $6600 on an average card to earn enough points for a $50 toaster. Credit card analyst Mike Ebstein, of MWE Consulting, said consumers putting less than $30,000 a year on their plastic and failing to pay off accounts in full each month should opt for a no-frills card with a low interest rate. Providers had been steadily increasing annual fees or lifting the number of points needed to get rewards since Reserve Bank regulation of transaction fees cut their income, he said. Source: Herald Sun 26/Jul/2010 - Sydney auctions bounce back, slightly Sydney’s auction clearance rate jumped up this weekend to 69 per cent from 55 per cent last week. There were 349 residential property auctions held in Sydney on Saturday, which was also up on last week when there were 318 auctions. On the same weekend last year, there were 263 auctions held in Sydney with a clearance rate of 68 per cent. In Melbourne there were 588 auctions held this weekend with a clearance rate of 56 per cent, down from last week when 66 per cent of 558 auctions produced a sale on the day. On the same weekend last year, 80 per cent of 429 auctions held in Melbourne produced a sale. In Adelaide, 68 per cent of 33 properties produced a sale. In Brisbane, 25 per cent of 44 properties listed for auction sold on Saturday. Source: Australian Property Monitors 14/Jul/2010 - Canberra has second most expensive houses Canberra’s residential property market has overtaken Melbourne and moved into second place in the list of most expensive capital city markets. Canberra's median residential house price rose 3.7 per cent to $508,500 in the three months to the end of May according to RP Data-Rismark. Prices in Melbourne increased 3.3 per cent to $480,000, while the Sydney market remained the most expensive with a median price of $517,250, a 2.4 per cent increase in three months. Century 21 Canberra principal Brian Nancarrow likened the Canberra housing market to that of Melbourne a year ago: "It's certainly a boom. It's not a bubble and it will flatten out." Source: The Australian top 14/Jul/2010 - Debit card spending growth slows The steady shift to payments made with debit cards and away from payments made with credit cards appears to be moderating. Debit card payments gained 1.10 per cent in market share of the value of purchases in Australia over the 12 months to May 2010. Data published by the Reserve Bank of Australia shows the shift in the mix of the value of purchases over the preceding 12 months was 2.50 per cent The slow-down in growth of debit over credit is surprising, given the promotion by several big banks of scheme debit cards, replacing Eftpos cards. Source: Banking Day 14/Jul/2010 - Term deposits offering high yields Term deposits are not just a safe haven for your cash, but with the very high interest rates now on offer for locking your cash away for a set period of time, they are an investment with high yields. Over the last 18 months, official interest rates set by the RBA have climbed 1.5 per cent while one year term deposit rates have climbed 3 per cent. Investors using advisor ‘platforms’ to spread and manage their investments are choosing to put about 25 per cent of their funds into term deposits according to a spokesperson for Aviva. Source: The Australian 13/Jul/2010 - Credit card spending back in style Credit and charge card spending went up in May by $1.7 billion to $19.6 billion according to data from the Reserve Bank of Australia. However card holders don’t seem to be letting their credit card balances get out of control. Purchases in May 2010 were 11 per cent higher than in May 2009. Cash advances were also eight per cent higher. Looking at credit card balances the month-on-month growth of 0.6 per cent, to $47.4 billion, was subdued in comparison, Michael Ebstein, principal of MWE, noted in his monthly report on the payments data. Source: Banking Day 13/Jul/2010 - Investors propping up property market The number of home loans sold in May went up, surprising many analysts who were expecting more signs of a cooling housing market. The number of new owner-occupier loans was up 1.9 per cent and the number of new investment mortgages was up 2.6 per cent. The value of new mortgages issued for investment purposes reached $7.66 billion, the highest monthly figure since before the global financial crisis in January 2008. However the total value of new loans is still near nine year lows, suggesting property markets will remain subdued this year. Source: The Age 13/Jul/2010 - Term deposits outperforming shares Cash deposits have delivered far better returns to investors over the last three years than the sharemarket has. The average annual rate of return over the last three years from a one year term deposit has been 5.6 per cent. The average annual return from the ASX200 companies over the last three years has been minus 6.6 per cent. Average dividend income has been between 3.4 per cent and 5.5 per cent which has been offset by some large capital losses. Source: Herald Sun 12/Jul/2010 - Saving a deposit for a unit takes four years It takes 4.0 years for a first time buyer couple to save a unit deposit. By capital city first time buyers need to save for the longest in Melbourne (4.3 years) and Sydney (4.2 years). It would take an extra two years to save a house vs a unit deposit in Sydney. A first time buyer couple planning to purchase the median priced unit in Australia would need to save 20% of their combined income for 4.0 years to raise a 20% deposit ($76,900). A year ago it would take first time buyers 3.2 years to save a deposit for a unit. Source: Bankwest 12/Jul/2010 - Saving a home deposit takes longer The second annual Bankwest First Time Buyer Deposit Report shows that the average first time buyer couple would need to save for 4.5 years to raise a conservative (20%) deposit to buy their first house as at March 2010, up from 3.7 years as at March 2009. Five years ago in March 2005, the time taken was 4.0 years. The time to save a deposit calculation is based on a first time buyer (FTB) couple saving 20% of their combined pre-tax income annually to raise a 20% deposit and includes federal and state government first home owners’ grant in the deposit. On this basis in March 2010 a first time buyer couple would need to raise a deposit of $85,800 to purchase the median house and would be saving $17,619 annually out of a combined income of $88,093. The increase in the time taken to save a deposit during the past year – from 3.7 to 4.5 years - reflects the recent reduction in the First Home Owners Grants from $14,000 to $7,000 and the 10% nation-wide increase in house prices since March 2009. Source: Bankwest 12/Jul/2010 - Auction results continue to slide The number of properties listed for auction and the auction clearance rate continues to slide. There were 351 residential properties put up for auction in Sydney on Saturday with 50 per cent selling on the day. Those results were down on last week, when 57 per cent of 418 properties put up for auction in Sydney sold on the day. On the same weekend last year, 71 per cent of 217 auctions held in Sydney resulted in sale. In Melbourne there were 556 properties put up for auction on Saturday, with 56 per cent selling on the day, slightly own on last week when 61 per cent of 567 auctions held in Melbourne resulted in a sale. On the same weekend last year, 78 per cent of 271 properties put up for auction sold on the day. In Adelaide, 47 per cent of 41 properties produced a sale. In Brisbane, 47 per cent of 42 properties put up for auction on Saturday sold on the day. Source: Australian Property Monitors 12/Jul/2010 - Credit card debt up, repayments down A pause in raising interest rates by the Reserve Bank of Australia in January and February this year seems to have prompted consumers to loosen their belts slightly and spend on their credit cards again. Credit card balances accruing interest rose to $34.012 billion when rates were left on hold in February, up $227 million from January, while repayments on those cards fell 4.7 per cent to $17.716 billion in February from $18.593 billion in January, according to the RBA. Source: Sydney Morning Herald 17/Jun/2010 - The gold mine of forgotten bank accounts There are millions of dollars sitting idle because bank accounts have been forgotten by their owners. ASIC released a list of unclaimed monies it holds waiting for its rightful owners to come looking for it. One person has left $481,199.00 in an ANZ bank account in Melbourne for many years, apparently forgotten. ASIC lists many other large amounts of cash that have been forgotten in old bank accounts. The balance has now been transferred to ASIC. People wishing to search for lost or unclaimed monies can visit ASIC’s consumer protection website fido.gov.au/unclaimed money. Source: Herald Sun 17/Jun/2010 - No housing bubble Residex chief executive officer John Edwards said despite widespread concern, Australia was not experiencing a house price ‘bubble’. “The interest rate increases, I think can now be said to have been largely absorbed and those who were going to be excessively stressed from the first group of increases have probably largely exited the market or will do so very shortly,” Mr Edwards said. “I suggest this as the number of Suburbs falling in value due to excess sale stock, where mortgage stress would be seen (those in the lower cost areas) are less than at the peak. The first wave peaked in February and since then it has been reducing. The impact of the next group of interest rate increases is starting to flow through. This will result in some moderate increases in Suburbs moving to negative growth.” Mr Edwards said Melbourne is likely to be the most impacted by rising rates. Source: The Advisor 15/Jun/2010 - Interest rates to keep house prices down House price growth will slow in 2011 because of rising interest rates says the latest BIS Shrapnel Residential Property Prospects, 2010 to 2013 report. ''With interest rates quickly lifting from these emergency levels, and the current variable rate of 7.4 per cent now being close to long-term trends, the recent levels of price growth cannot be maintained,'' BIS senior project manager Angie Zigomanis said Nonetheless, house prices will continue to grow, BIS claims. The exit of first home buyers has also added to a weakening of demand. More moderate interest rate movements than recent months will aid purchaser confidence, it says. BIS forecasts the cash rate to rise by 50 basis points in the 2010-11 financial year and by another 50 basis points in 2011-12. ''The more stable interest rate environment is expected to underpin purchaser confidence as economic conditions continue to strengthen, and should continue to push through moderate house prices rises,'' Mr Zigomanis said. Source: The Age 15/Jun/2010 - Queen’s Birthday no good for auctions Auction results were subdued for the Queens’ Birthday weekend. In Sydney there were 274 residential property auctions with 61.2 per cent resulting in a sale on the day. That was down from last week when there were 530 auctions for a clearance rate of 62 per cent. In Melbourne there were just 286 auctions held with a clearance rate of 60 per cent, down from 884 auctions and 65 per cent last week. In Adelaide, 42 per cent of 37 properties sold at auction on the weekend, down from 58 per cent of 53 auctions last week. In Brisbane just 12 per cent of 49 auctions resulted in a sale on Saturday, down from 36 per cent of 56 last week. Source: Australian Property Monitors 24/Jun/2010 - Units give options for first home buyers Across Australia’s capital cities the median unit price is currently recorded at $410,000 which is $82,000 more affordable than the median house price. Based on rpdata.com analysis, on average, purchasers in New South Wales spent on average $350,444 on a unit. In contrast, property buyers in Tasmania sent on average $216,556. In Perth 36.1 per cent of unit sales were at or below $324,444. Sydney has also performed very well with 35.0 per cent of all unit sales over the last 12 months priced below $350,444. Despite the fact that Canberra had the lowest proportion of affordable unit sales, The Jerrabomberra District along with the Kwinana Local Government Area (LGA) in Perth recorded every single unit sale over the last year within the affordable price ranges of $301,556 and $324,444 respectively. Source: rpdata 24/Jun/2010 - END OF TAX YEAR TACTICS FOR PROPERTY INVESTORS Prepaying interest on investment property before the end of the financial year is a good way to minimise tax. And with another fall in income tax rates next financial year it makes even more sense this year so you get more bang for your buck. The threshold for the 15 per cent tax rate will rise from $35,000 to $37,000 and the rate for those earning $80,000 to $180,000 drops from 38 per cent to 37 per cent. So any deductions this year will carry more weight, says Deb Wixted head of technical services at Colonial First State who suggests you prepay interest on your investment loan up to 12 months in advance. And Aussie Home Loans chairman John Symond says that if you have sold a property this year and made a capital gain then seek to offset this through selling any loss-making investments such as shares before year-end. 23/Jun/2010 - Can you cope with a 4 per cent rate rise? Mortgage borrowers should have their financial positions compulsorily ‘stress tested’ just as banks have their financial positions regularly stress tested by the banking system regulator APRA. The Institute of Actuaries told a senate committee last month that anyone who is undertaking a major financial commitment such as a mortgage should have to undergo a financial stress test before the commitment is made. A stress test would look at how the borrower might cope with rate rises of up to three or four per cent. Currently lenders usually investigate how a borrower might cope if rates were to go up about 2 per cent. Rates have risen 1.5 per cent since last October and some economists expect rates to go up another 1.5 per cent by the end of 2011. Source: Sydney Morning Herald 23/Jun/2010 - Rates to go up another 0.5 per cent The Reserve Bank of Australia is expected to raise the official cash rate by another half of one per cent by the end of 2010 according to Westpac chief economist Bill Evans. That would take the cash rate from 4.5 per cent currently to five per cent, and push retail mortgage rates up to around 8 per cent. Mr Evans said the housing market should experience a slowdown before the end of the year, which should prevent rates from exceeding 5 per cent. "Rate rises and lower first home buyer demand have already impacted heavily on housing finance approvals [down 28 per cent from their September high],” he said. “Historically, swings in finance approvals have usually been a good gauge of demand, impacting with a lag of about six months.” Source: The Advisor 23/Jun/2010 - Good News for Savers The Government’s 2010 Budget was announced earlier this year and there was some good news for savers. In future individuals will be eligible for a tax discount of 50 per cent on interest earned from savings products. The discount will apply on up to $1,000 of interest income from 1 July 2011. This is good news for most Australians as it means you will be paying less tax on any interest you earn. Which products are likely to included? The savings discount applies to deposits held with an authorized deposit-taking institutions. Interest on the following products are eligible: Online savings accounts; term deposits; cash management accounts; online and standard savings accounts; deeming accounts; transaction accounts. How much tax will this save me? The tax discount will apply on any interest earned up to $1,000. Assuming you have a savings product that earns 6% interest p.a. (which is achievable in today’s market) you would need to have a deposit of over $16,000 to earn more than $1,000 in interest in a year. Any interest earned over $1,000 will be taxed at your marginal rate, while the interest below $1,000 will be taxed at half your marginal rate. Example*:   Before 1 July 2011 After 1 July 2011 Initial Deposit Balance $16,000.00 $16,000.00 Returns in Year 1 $986.85 $986.85 Tax on Returns $296.05 $148.00 Ending Balance after Tax $16,690.80 $16,838.85 Difference - $148.05 *Example assumes a return of 6% p.a. compounded monthly and a marginal tax rate of 30%.                                       21/Jun/2010 - Auctions bounce back Auction clearance rates held up this weekend, despite big increases in volumes, suggesting plenty of demand in the residential property market. There were 549 auctions of residential properties in Sydney on the weekend, up from 267 last week, with 61 per cent producing a sale on the day (62 per cent last week). On the same weekend last year, 66 per cent of 264 properties sold at auction in Sydney. It was another huge auction weekend in Melbourne with 960 properties put up for auction and 63 per cent of those selling on the day, up from 62 per cent of 280 properties last week. On the same weekend last year in Melbourne, 80 per cent of 497 properties sold at auction. There were 43 auctions held in Adelaide on Saturday with 50 per cent producing a sale. In Brisbane there were 59 properties auctioned with 42 per cent selling in Saturday. Source: Australian Property Monitors 21/Jun/2010 - Stamp duty concession puts pressure on prices The NSW government's decision to remove stamp duty for off-the-plan property under $600,000 could push up prices. To obtain the full $22,490 saving offered in the budget, buyers must sign up before building commences. If construction has already begun, they are eligible for a $5623 discount. And to be eligible, the building must be completed within two years of a buyer exchanging on the deal. The chief economist with St George Bank, Justin Smirk, said ''it's certainly going to create more demand'' he said. ''But the problem is it takes a long time for the credit approvals to get through the [banking] system''. David Milton, the managing director of agents CB Richard Ellis said the plan was ill-conceived because most large developments would not comply and the two-year time frame would be too tight. ''A lot of our projects have 20-month to two-year building periods,'' Mr Milton said. ''And if there are wet-weather delays or if there are issues with your builder, it's not going to work out''. Source: Sydney Morning Herald 17/Jun/2010 - The gold mine of forgotten bank accounts There are millions of dollars sitting idle because bank accounts have been forgotten by their owners. ASIC released a list of unclaimed monies it holds waiting for its rightful owners to come looking for it. One person has left $481,199.00 in an ANZ bank account in Melbourne for many years, apparently forgotten. ASIC lists many other large amounts of cash that have been forgotten in old bank accounts. The balance has now been transferred to ASIC. People wishing to search for lost or unclaimed monies can visit ASIC’s consumer protection website fido.gov.au/unclaimed money. Source: Herald Sun 17/Jun/2010 - No housing bubble Residex chief executive officer John Edwards said despite widespread concern, Australia was not experiencing a house price ‘bubble’. “The interest rate increases, I think can now be said to have been largely absorbed and those who were going to be excessively stressed from the first group of increases have probably largely exited the market or will do so very shortly,” Mr Edwards said. “I suggest this as the number of Suburbs falling in value due to excess sale stock, where mortgage stress would be seen (those in the lower cost areas) are less than at the peak. The first wave peaked in February and since then it has been reducing. The impact of the next group of interest rate increases is starting to flow through. This will result in some moderate increases in Suburbs moving to negative growth.” Mr Edwards said Melbourne is likely to be the most impacted by rising rates. Source: The Advisor 15/Jun/2010 - Interest rates to keep house prices down House price growth will slow in 2011 because of rising interest rates says the latest BIS Shrapnel Residential Property Prospects, 2010 to 2013 report. ''With interest rates quickly lifting from these emergency levels, and the current variable rate of 7.4 per cent now being close to long-term trends, the recent levels of price growth cannot be maintained,'' BIS senior project manager Angie Zigomanis said Nonetheless, house prices will continue to grow, BIS claims. The exit of first home buyers has also added to a weakening of demand. More moderate interest rate movements than recent months will aid purchaser confidence, it says. BIS forecasts the cash rate to rise by 50 basis points in the 2010-11 financial year and by another 50 basis points in 2011-12. ''The more stable interest rate environment is expected to underpin purchaser confidence as economic conditions continue to strengthen, and should continue to push through moderate house prices rises,'' Mr Zigomanis said. Source: The Age 15/Jun/2010 - Queen’s Birthday no good for auctions Auction results were subdued for the Queens’ Birthday weekend. In Sydney there were 274 residential property auctions with 61.2 per cent resulting in a sale on the day. That was down from last week when there were 530 auctions for a clearance rate of 62 per cent. In Melbourne there were just 286 auctions held with a clearance rate of 60 per cent, down from 884 auctions and 65 per cent last week. In Adelaide, 42 per cent of 37 properties sold at auction on the weekend, down from 58 per cent of 53 auctions last week. In Brisbane just 12 per cent of 49 auctions resulted in a sale on Saturday, down from 36 per cent of 56 last week. Source: Australian Property Monitors 13/May/2010 - Housing market cooling rapidly Australian housing finance commitments for owner-occupied housing fell 3.4 per cent in March, seasonally adjusted, to 48,260, said the Australian Bureau of Statistics yesterday. The total volume of owner-occupied housing was at its lowest level since April, 2001. Commonwealth Bank senior economist Michael Workman said first home buyers had left the market. "The two big trends are (fewer) first home buyers and more established, second home buyers in the market,'' Mr Workman said. "The weakness in the data over the past six months has been the withdrawal of the first homebuyers scheme. The anecdotal evidence from real estate agents is that the activity in the market is from people who are trading up.'' Workman said rising interest rates had not affected the market. Herald Sun 13/May/2010 - First Home Saver Account confusion In the original scheme first home savers scheme, buyers had to contribute to their FHSA over four financial years to qualify for concessional tax treatment and government contributions, and could not put the money to a home purchase until after that time had passed. If they bought a house before the four years was up the money in the FHSA would go into their superannuation account. Now the government will allow people to buy a home and then put the money saved in the FHSA into the mortgage after the qualifying period has ended. Whether borrowers would then be allowed to redraw the money is unclear. What is also unclear is whether the money in the account could be used as part of the loan deposit, if the house is purchased before the four years period ends. A banking tax partner at Deloitte, Emanuel Hiou, said the change was unlikely to make FHSAs, which are offered by only a small number of institutions and have not attracted much money, any more popular. From a first home buyer’s point of view the biggest stumbling block, the four-year qualifying period, was still in place. Hiou said: “I would be surprised if there was any increase in take-up.” Banking Day 12/May/2010 - House prices, interest rates head north Sydney house prices jumped up a record 21 per cent over the year to the end of March, according to figures released by the Australian Bureau of Statistics. Melbourne prices went up 28 per cent. Nationally, capital city prices climbed 20 per cent over the year to March. The government is expecting the housing boom to continue, with private dwelling investment tipped to jump by 7.5 per cent next financial year. The Commonwealth Budget papers, released yesterday show the government expects inflation to hit 3.25 per cent this June quarter. The budget papers have warned that further interest rate rises could be in store. ''Strong population growth and low vacancy rates should continue to support activity in the dwelling sector, although this is likely to be tempered by higher mortgage interest rates,'' Treasury says in the budget. Sydney Morning Herald 12/May/2010 - First Home Saver Accounts get better The under-used First Home Saver Accounts scheme, which gives savers a government co-contribution of up to $850 per year, will be overhauled a second time to make it more flexible, the government announced yesterday. Current rules mean aspiring first home buyers are forced to keep their savings in designated accounts for four financial years before being able to access the money to buy a house. If the account holder buys a house before the end of that four-year period, the balance of their account is transferred to their superannuation fund. Now, the government will allow cash in FHSAs to be paid into mortgages after the end of the minimum qualifying period if a house is bought in the interim. The Treasurer, Wayne Swan said the idea was to give aspiring first home buyers more flexibility but still allow them to benefit from the concessional tax rates and government contributions. The Age 12/May/2010 - Tax on deposits slashed from 2011 Interest paid on low value bank deposits and comparable savings will be subject to a reduced rate of tax from July 2011, the Australian government said last night. The measure was announced in the budget. Income from bank deposits will be taxed at 50 per cent of the marginal rate of tax that the taxpayer would otherwise pay. The reduced interest will apply on the first $1000 in interest income earned in any year. Based on current interest rates this means that the maximum tax cut applies to deposits of around $15,000. Higher income earners paying tax at the highest marginal rate will reap a bigger benefit than those on lower tax rates. The tax benefit also applies to interest earned on bonds, debentures or annuity products. The tax benefit applies to individuals and includes savings held through a trust or managed investment scheme. The government said it expected to reduce tax on interest earned by 5.7 million depositors, and estimated the loss in tax revenue at around $500 million. Banking Day 11/May/2010 - Auction clearance rates stay high There were 506 residential property auctions held in Sydney on the weekend, with 66 per cent producing a sale on the day. Those results are slightly down on last week when 69 per cent of 524 auctions produced a sale in Sydney. On the corresponding weekend last year, 68 per cent of 286 auctions produced a sale. Melbourne results were also just slightly down on last week’s bumper results. There were 836 auctions held in Melbourne on Saturday with 67 per cent producing a sale. Last week 75 per cent of 861 properties put up for auction were sold on the day in Melbourne. On the same weekend last year, there were 432 auctions with a clearance rate of 71 per cent in Melbourne. 54 per cent of 54 properties sold at auction in Adelaide on the weekend, just slightly down on the week before. In Brisbane, 25 per cent of 64 properties put up for auction sold on the day. Australian Property Monitors. 07/Jan/2010 - 2016 Eftpos problems fixed   The 2016 bug affecting may Eftpos terminals has impacted on millions of customers around the world. 25 million cardholders have been affected in Germany alone. The bug causes Eftpos machines to wrongly read the year 2010 as 2016. In Australia, merchant terminals supplied by Bank of Queensland, Bankwest and Credit Union service provider CUSCAL have been hit. Some consumer Eftpos receipts are still recording the date of transaction as 2016, instead of 2010, says Eftpos technology company Keycorp, but the system and later bank statements record the date correctly says Joe Bonin, CEO of Keycorp. Source: The Age 07/Jan/2010 - 50/50 chance of rates going up again   The Reserve Bank should pause its rate rising agenda says a leading business lobby group because new data indicates continuing weakness in the economy. The Australian Industry Group-Commonwealth Bank of Australia performance of services index dropped 2.5 points to 50 points in December. Services make up the largest stake of the Australian economy. "The December Australian PSI confirms that the recent improvement in the services sector lacks traction and adds weight to arguments for a pause to interest rate rises,” said AIG group chief executive, Heather Ridout. Markets are currently pricing in a 50 per cent chance that the reserve bank will increase official interest rates again in February. The official cash rate is currently set at 3.75 per cent, after three 0.25 per cent increases in the last four months. Source: Sydney Morning Herald 7/Jan/2010 - Rates to rise more than 1% in 2010   The Reserve Bank will lift official interest rates by more than one full percentage point to about five per cent before the end of 2010, say economists. A one percentage point rise on a current standard variable rate mortgage of $300,000 would lift monthly repayments by $203. The RBA is expected to impose a fourth rate rise of 0.25 per cent in February or March, then pause to assess the impact of its rate rising campaign before lifting rates again. JP Morgan economist Helen Kevans said "The RBA will continue tightening, yet it would not be surprising thereafter if the RBA takes a breather and sees how the economy reacts to those interest rate hikes. It will be looking to confidence, home loans, and of course, the data from offshore." National Australia Bank senior economist David de Garis said big new mining projects would place upward pressure on inflation, prompting the RBA to raise rates again. Source: Courier Mail 06/Jan/2010 - New home sales fall away   New home sales were weak in November according to the latest figures released yesterday by the Housing Industry Association. A 0.8 per cent rise in the numbers of detached dwellings sold in November was offset by a 4.9 per cent decline in the numbers of multi unit apartments. HIA chief economist Harley Dale said investors and upgrading owner occupiers had not fully replaced the volume from first home buyers that fell away late in the year as federal government grants tapered down. "There are a considerable number of obstacles blocking the prospect of a strong up-cycle in new home building including costly planning delays, the re-emergence of land and skilled labour shortages and rising interest rates.” Detached New Home Sales in November increased by 12.1 per cent in Western Australia and fell by 1.8 per cent in Queensland and by 3.5 per cent in Victoria. Source: Herald Sun top 06/Jan/2010 - New year resolutions add to wealth   Turning your financial goals into new year’s resolutions increases the chances of success by up to ten times according to new research from the United States. The US researchers found that almost half of the people who turned their plans and goals into a new year’s resolution had reached their goal or were still on track with it six months later. Less than five per cent of people who had goals for the year but did not make them into a specific resolution were still on track with their plan. However experts warn that the resolutions must be very specific to bring any worthwhile benefit. It won’t work to simply resolve to “cut back on debt” for example. Popular new years resolutions include saving money – experts suggest setting up an automatic savings plan with direct debits – and paying off debts – experst recommend paying the high interest credit cards off first. Source: Courier Mail 6/Jan/2010 - Queensland property looks a good investment   There was significant growth in the total value of investment purpose home loans between April and October. The Real Estate Institute of Queensland expects this trend to continue. Queensland's population is growing by about 1,500 people per week, says REIQ managing director Dan Molloy, creating an ongoing housing shortage which means investors are likely to drive the market forward in the first part of 2010. "We are simply not building enough homes for everyone that wants to live here," says Molloy. Source: Courier Mail 06/Jan/2010 - Take stock of xmas debts   The new year is a traditional time for taking stock of personal finances. Many thousands of people are forced into bankruptcy in the early months of each year, because of debts racked up over the Christmas period. ASIC recommends that people consider taking stock of their financial position using an online calculator available at ASIC’s consumer affairs website, FIDO. The calculator, labelled “Statement of Financial Position’ allows the user to enter their assets and liabilities. The calculator then gives the user a reading on their overall financial strength (or weakness). Source: Courier Mail 06/Jan/2010 - Take stock of xmas debts   The new year is a traditional time for taking stock of personal finances. Many thousands of people are forced into bankruptcy in the early months of each year, because of debts racked up over the Christmas period. ASIC recommends that people consider taking stock of their financial position using an online calculator available at ASIC’s consumer affairs website, FIDO. The calculator, labelled “Statement of Financial Position’ allows the user to enter their assets and liabilities. The calculator then gives the user a reading on their overall financial strength (or weakness). Source: Courier Mail 06/Jan/2010 - Time right for first time property investors   The timing is particularly good for first time property investors to have a go at being a landlord. “Banks are not so keen any more on lending to people who already have a few investment properties because they have tightened lending rules and are generally concerned that people don’t take on too much debt,” said mortgage broker Anthony Smith from Melbourne’s south east. “But people with equity in their own homes who have never had an investment property before are being approved,” says Smith. And they face reduced competition for good properties from other investors at the moment as well. Banks are now less willing to lend to the self employed and contractors, forcing those people out of the property investment market as well says Smith. “A lot of investors have dropped out because they simply can’t access funds.” Source: Courier Mail 6/Jan/2010 - WA leading in new home sales   Western Australia stood out from the rest of Australia in November as new home sales rose by more than 12 per cent. Many other states recorded falling new home sales as first home buyers exit the market following the phasing down of federal government grants. New detached home sales increased by 12.1 per cent in November in WA, by 2.7 per cent in NSW and 2.6 per cent in South Australia. Sales fell in Queensland and Victoria. Overall, sales of new detached homes was 0.8 per cent. "The outlook for home construction is clearly more positive than the latest sales figures imply,” said Commsec economist Craig James. "Housing finance and council approval figures both point to a lift in residential building in 2010." Source: The Australian 9/Nov/2009 - Rents up everywhere   Rents on houses increased 3.4 per cent to $422 a week nationally over the 12 months to October, while they rose 4.1 per cent on apartments to $409 according to property research firm rpdata. The biggest increases were in Rose Bay, NSW where median advertised rents on houses jumped 58.3 per cent to $950 from $600 a year ago. For units, Brisbane's West End saw rents go up 39.4 per cent to $460 a week from $330. Other big rises in advertised median house rentals were in Toorak, Victoria ( up 44 per cent to $1280/week), Bulimba in Brisbane ( up 44 per cent to $650), and Griffith in the ACT (up 41 per cent to $1100 per week). Source: The Age 19/Nov/2009 - RBA divided on rate rises   Some economists are predicting that the Reserve Bank may pause its rate rising agenda in December and hold the official cash rate at 3.5 per cent. Westpac says the minutes of the November RBA board meeting implied the RBA is considering not lifting rates again this year. But, says Westpac, "the economic case in our view is not strong enough to change our call that a December 25-basis point rate hike is likely". The minutes reveal that the RBA is weighing up both sides of the argument: "On the one hand, business and consumer confidence could prove fragile, and economic activity at home and abroad might slow more than expected as the effects of stimulus measures faded," the minutes say. But, on the other hand, "a lengthy period with interest rates at a very low level carried its own risks, particularly once the threat of serious economic weakness had passed". Source: Courier Mail 18/Nov/2009 - Young people in perpetual debt   Generation Y (people aged under about 30 years of age) are likely to have more problems paying off debts than young people have had in the past. An increase in part time work and a fall in hours worked means they have less means to repay debt. Often a young person’s first debts today are likely to be ‘perpetual debts‘ such as credit cards and HECS, whereas in the past a young person’s first debt was more likely to be a fixed repayment schedule loan such as a car loan. Being in perpetual debt is no longer something that many people think should be avoided. "I don't think Gen Y has really had a great deal of experience in managing money and finances, or in establishing good savings practices," says KPMG demographer Bernard Salt. "I am really quite concerned about their ability to manage all of this." A financial planner with Centric Wealth Advisers, Peter Richards, says there should be a plan to bring debt under control and debts with higher interest rates, such as credit-card debt, should be paid off first. Source: Sydney Morning Herald 18/Nov/2009 - Third rate rise coming in December   Financial markets have priced in a 60 per cent chance that the Reserve Bank of Australia will lift its cash rate for an unprecedented third month in a row on December 1. RBA board meeting minutes from the last meeting show a board worried about achieving the right balance between controlling inflation and allowing the economy to recover from the recent downturn. The Australian Chamber of Commerce and Industry is concerned at the impact of a third rate rise on small business conditions. "We would be concerned about a third rate increase in the December quarter, especially as that could crimp demand running up to Christmas, especially with respect to small businesses," said ACCI director of economic and industry policy Greg Evans. "This is make or break time for small business." Source: Herald Sun 17/Nov/2009 - Fix your bad credit file now   A bad credit file can cost a lot in the long term. If you haven’t paid bills, or if you've had your power cut off, your car repossessed or skipped payments, exceeded card limits or defaulted, you could be refused a loan or be charged a higher interest rate. Consumers can get access to their credit file through Veda Advantage at www.mycreditfile.com.au so they can check their file and ensure its’ accuracy. To change a bad credit record into a good one, use credit as much as you can, meeting all repayments on time, so the good record outweighs the bad. Put all your spending on a credit card and pay it off every month. Source: The Daily Telegraph 16/Nov/2009 - Melbourne auction clearances still above 70%   Sydney’s auction results are steady this week with clearance rates and volumes broadly the same as last week. 64 per cent of 408 residential properties listed for auction on Saturday were sold on the day in Sydney, compared with 64 per cent of 397 properties last week. On the same weekend last year, 41 per cent of 429 properties sold at auction in Sydney. Clearance rates in Melbourne continue to be above seventy per cent, with 71 per cent of 742 residential properties listed for auction on Saturday selling on the day. Last weekend 76 per cent of 562 properties sold at auction in Melbourne and on the same weekend last year, 51 per cent of 766 properties sold. In Adelaide, 50 per cent of 30 properties sold at auction on Saturday, broadly the same results as last weekend and last year. In Brisbane, just 19 per cent of 60 properties sold at auction, down from last week when 50 per cent of 51 properties sold. Source: Australian Property Monitors 16/Nov/2009 - Tax on savings to be slashed   The rate of tax on bank deposit savings is likely to be cut as the government seeks to build a national savings base outside superannuation. The former chief executive of Westpac and current director of BHP Billiton, David Morgan, told the ASFA superannuation conference in Melbourne last week that the government would seek to end the preferential treatment of superannuation savings over ordinary bank deposits. Banks are also believed to be lobbying the government for assistance in building up savings from retail deposits. The Henry review into taxation is due to report to the government in December. Source: Sydney Morning Herald 16/Nov/2009 - Home renovations don’t pay off   In the last three months many more homeowners are investigating and starting renovations to add value to their homes says buyers advocate Peter Kelaher. However research from the USA indicates that renovations typically add 19 to 44 per cent less to the value of the home than the costs involved. The improvement projects that held their value the best (although still lost money) were wooden decks (recouped 82 per cent of the cost), new kitchen (80 per cent), new windows (77 per cent), new bathroom (75 per cent), attic bedroom (74 per cent). A second story addition recouped only 71 per cent of the money spent on it. Source: The Age 04/Nov/2009 - PayPal to crush cards online   Over the next 18 months, hundreds, even thousands, of new banking and payments products and applications will appear, designed by the online generation themselves, for the online generation. This new development has arisen mainly because one online financial institution – PayPal - realised and admitted that it couldn’t research and predict what the online generation really wanted. “In the past we tried to define the needs and make the solutions, but we don’t know the whole story,” says PayPal’s Australian managing director Dinuke Ranasinghe. PayPal, which has attracted seven million Australian accounts in just four years, is doing what no traditional bank would ever contemplate. It is opening up its software base code to its users and web developers to let them design their own payment products. “The next 18 months are going to see massive changes and innovations in payments,” says Ranasinghe. PayPal’s opening up of its code gives every computer geek and web developer the chance to build their own payments products that will compete with the banks. Already PayPal is the preferred method of paying for ninety per cent of online shoppers. The opening of the PayPal software could potentially crush other online payments systems. Source: Herald Sun 04/Nov/2009 - The RBA signals more pain ahead   The governor of the Reserve Bank issued a short statement accompanying the rate rise yesterday which made it clear there were more rises to come. While the commonwealth treasury believes economic growth will be weak in the coming year, the Reserve Bank says growth will be close to trend. That forecast is believed to support the RBA’s plan to return interest rates to a ‘neutral‘ setting of about 5.0 per cent. Currently the official cash rate is set at 3.5 per cent. A 5.0 per cent cash rate will push the standard variable mortgage rate to 7.75 per cent and add $380 a month in repayments to the cost of servicing a $300,000 mortgage since this round of rate rises began. Source: Sydney Morning Herald 04/Nov/2009 - Mortgage rates go up again   The Reserve Bank of Australia yesterday raised official interest rates by 0.25 per cent to 3.5 per cent, the second rate rise in one month. Within minutes of that announcement, the ANZ Bank moved to pass on the rate rise in full to their standard variable mortgage customers. The other three big banks also moved their rates up before the close of business yesterday. ANZ and Westpac's standard variable mortgage are now set at 6.31 per cent, while Commonwealth Bank and National Australia Bank's rates are 6.24 per cent. The two successive rate rises in the last month have added about $92 in repayments to a household with a typical $300,000 standard variable mortgage. Source: Sydney Morning Herald Nov/2009 - No more signatures says Visa   Visa today announced it will move to chip and PIN technology for all Australian Visa cards over the next four years, with signatures no longer accepted at the checkout from 2013, as part of a wide-ranging agenda to cut card fraud. Visa’s General Manager for Australia and New Zealand, Chris Clark, said Visa was working with financial institutions and retailers to upgrade more than 14 million Visa cards in Australia, half a million merchant point of sale terminals and thousands of ATMs to chip and PIN technology. “From January 2010, all new Visa credit cards issued in Australia will feature secure embedded smart chips to give Australians a higher level of confidence in the security of their transactions,” Mr Clark said. “This will be followed by the upgrade of Visa debit and reloadable prepaid cards from January 2011,” he added. “Chip technology will also offer banks and merchants the ability to provide their customers with benefits such as faster transactions, innovations such as contactless payments and the opportunity to store information such as reward programs on their cards.” Mr Clark said the move to chip and PIN was part of a comprehensive seven-point security agenda that also includes initiatives to enhance the security of online transactions. Cardholders will be enabled to use a Verified by Visa password when shopping over the internet. Online retailers will be required to capture the three-digit cardholder verification number when processing transactions, while small and medium sized businesses will be required to enhance their levels of data security. Source: Visa 02/Nov/2009 - Aussies are stashing their cash   The first national study by Westpac into the social effects of the global financial crisis shows more than 32% of Australians are cocooning in the suburbs and even cancelling their Christmas travel, with over 80% cautiously stashing their cash in a major shift away from a decade of stress and excess. Westpac spokesperson Jason Yetton, General Manager - Westpac Retail Banking, said the research reflects a cultural change in attitudes after a tough 12 months. “We’ve had the sea change and the tree change and now we see a trend towards people getting back to basics in the suburbs, and making it a lot more about them and their needs,” he said. 52% are spending what money they do have supporting their local businesses, with 26% opting to eat at neighbourhood restaurants and drinking at the corner pub. A further 15% of people are looking to find a job closer to home. Australians attribute the shift to “think local, act local” to losing out in super and property values in the last twelve months. 40% of those who had received bad advice from rogue advisors blamed them for the downturn in their personal finances. Source: Westpac 02/Nov/2009 - Most borrowers reject fixed rates   Most homeowners are choosing to stick with their variable rate mortgages with only ten per cent saying they are opting to fix their rate now. The Reserve Bank is expected to raise interest rates by about two per cent over the next 12 months. An online poll by News Ltd last week indicated that 57 per cent of borrowers were happy to stay with their current variable rate mortgage with 19 per cent saying they would wait and see. 12 per cent were already in fixed rate mortgages and 10 per cent said they were switching to a fixed rate mortgage. Fixed rate mortgages are about two per cent higher than current standard variable rate mortgages. Source: The Daily Telegraph 02/Nov/2009 - Sydney auction results improving   The Sydney residential property market shows signs of continued improvement with good auction results from last weekend. 65 per cent of 459 properties listed for auction sold on Saturday, compared with 65 per cent of 351 last week. On the same weekend last year there were369 propertie listed for auction with 42 per cent selling on the day. Melbourne results were affected by the Spring Racing Carnival but were still substantially better than the results from the same weekend last year. 68 per cent of 365 properties sold at auction, down from 79 per cent of 949 properties auctioned last week. Last year 49 per cent of 136 properties sold at auction in Melbourne. In Adelaide, 49 per cent of 55 properties sold, with numbers up from last week and last year. In Brisbane, 50 per cent of 66 properties sold at auction on the weekend, up from last week and last year. Source: Australian Property Monitors  20/Aug/2009 - Beware new wave of online crime   An unprecedented wave of crime is sweeping the internet say authorities. The Australian Computer Emergency Response Team (AusCERT) says thousands of Australian computers are being infected with malware every day with millions of credit card numbers being stolen and traded online. AusCERT says there is so much crime online now that it threatens Australia’s economy. Spy agency ASIO is also concerned about security threats from the new wave of cyber attacks and says criminal groups and terrorists are using freelance hackers. Source: Herald Sun 19/Aug/2009 - NSW workers expecting 5% pay rise   Total pay growth over the 12 months to August 2009 rebounded to 4.1 per cent according to the Melbourne Institute wages report, released yesterday. Respondents expect a moderate 3.2 per cent rise in pay over the next 12 months. According to Dr Edda Claus, a Research Fellow at the Melbourne Institute, “As observed in the 12 months to May 2009, Total pay and Hourly wage rates have again risen at similar rates. This is consistent with a continued dull labour market.” Dr. Claus added: “The ACT had the highest growth in Total pay and Victoria had the lowest growth. Going forward, respondents in NSW are the most optimistic about future wage growth, expecting 5.1 per cent growth over the next 12months.” Source: Melbourne Institute 19/Aug/2009 - ASIC says ban financial commissions   The financial and corporate regulator, the Australian Securities and Investment Commission has recommended to government that commissions paid by financial institutions to financial advisors be outlawed. Four years ago ASIC found that many AMP financial planners did not act in the best interests of their clients when they signed them up to AMP financial investment products. The Financial Planning Association says that the financial “advice” industry is unlikely to survive in its current shape if ASIC's proposals are adopted. Source: Sydney Morning Herald 19/Aug/2009 - MyState members vote for shares   My State Financial will demutualise with support from 84 per cent of members voting at a special meeting of the credit union in Hobart yesterday. MyState will merge with Tasmanian Perpetual Trustees, an ASX listed company, assuming shareholders in the latter agree at a special meeting today in Launceston. PKF Corporate Advisory estimated the value of the merged entity at between $200 million and $211 million, which gives a theoretical value per MyState Limited share of between $2.97 and $3.14, or approximately $1129 to $1193 for a parcel of 380 MyState Limited shares. Credit union demutualiations are rare in Australia. An effort by Connect Financial, a predecessor of MyState, failed narrowly in 2003. Source: The Sheet 19/Aug/2009 - Six rate rises expected, starting early 2010   Financial markets are expecting that the Reserve Bank may raise rates more than six times, starting early next year. In the August board minutes published yesterday, the RBA said it was unlikely there would be further cuts to interest rates as the outlook for the economy had started to brighten. The RBA minutes stated that “the bank would in due course need to adopt a less expansionary policy stance." Markets predict that there is a six per cent chance of a rate rise in September. The expectations of a rate rise by the end of the year are firming. JPMorgan chief economist Stephen Walters said the RBA board would wait until early next year to raise rates. "Only if the domestic data fails to soften, or the global uncertainties are resolved unequivocally some time soon, will the RBA deliver a rate hike before the end of 2009," Mr Walters said. "Once the hikes begin, though, we expect a steady drumbeat of 25 basis point hikes as the bank removes the generous policy accommodation in an orderly and resolute fashion." Source: The Australian 18/Aug/2009 - Frozen mortgage fund withdrawals get bigger   ASIC has announced changes to hardship withdrawals from frozen mortgage funds. These changes expand the circumstances in which operators are able to make payments to fund members who demonstrate the need to access funds on hardship grounds. The cap on hardship withdrawals for each member has been raised to $100,000 each calendar year, from $20,000 plus 50 per cent of the member’s interest. An investor can make up to four hardship withdrawals a calendar year, instead of a once-only withdrawal (subject to the overall cap of $100,000); and hardship grounds have been extended to cover a beneficiary of a deceased estate of a member where the beneficiary is suffering hardship; and to make it clear a person unemployed for at least three months without other means may apply for hardship relief. ASIC first announced hardship relief measures in October 2008. 1452 withdrawal payments have been made with an average withdrawal of $25,024. The existing hardship relief criteria (which continues in operation): 1) the member is unable to meet reasonable and immediate family living expenses. 2) On compassionate grounds (e.g. medical costs for serious illness, funeral expenses or to prevent foreclosure); and 3) Permanent incapacity. Sournce: ASIC 17/Aug/2009 - Credit card debts hurt homeowners   Seventy one per cent of home owners struggling to repay a mortgage are also carry over unpaid credit card debts according to big mortgage insurer Genworth. On average 52 per cent of card holders carry over debt with the rest paying off their card debts on time. That is despite average mortgage interest rates falling 3.7 per cent since the RBA starting its aggressive rate cutting campaign last year, according to Infochoice. Credit card rates have fallen only 1.2 per cent in that same period of time. There are six credit cards offering zero interest on balance transfers according to Infochoice. They are issued by ANZ, Citibank, Coles, Macquarie Bank and NAB. Source: Sydney Morning Herald 17/Aug/2009 - Melbourne auctions outshine other cities   The number of auctions held in Sydney on the weekend was down again to 226, with 74 per cent resulting in a sale on the day. Last week 67 per cent of 247 properties put up for auction in Sydney sold on the day. Melbourne auction results continued to shine with 75 per cent of 485 properties put up for auction selling on the day. Last week in Melbourne, 80 per cent of 438 properties sold at auction. The Adelaide market shows signs of improvement with 65 per cent of 31 properties put up for auction selling on Saturday, up from 40 per cent of 25 properties last week. 49 residential properties were put up for auction in Brisbane on the weekend with 48 per cent selling, compared to 36 per cent of 67 properties the week before. Source: Australian Property Monitors 17/Aug/2009 - Be prepared for higher rates says RBA   Homebuyers have to be prepared for higher interest rates says the governor of the Reserve bank, Glenn Stevens. Stevens told a parliamentary hearing that rate are currently well below normal and would move “a good deal north” as Australia emerges from what “may turn out to be one of the shallower recessions Australia has experienced.” Many economists expect official rates to climb by two per cent from three per cent now to five per cent by the middle of next year. That would push standard variable mortgage rates from 5.37 per cent currently to about 7.37 per cent. On a $300,000 mortgage that would push repayments up from $1819 per month to $2191 per month. Source: Herald Sun top