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Welcome to Grace Finance

2009-11-20T20:52:00.000-08:00

Welcome to Grace Finance. For more information on who we are and our services please check out our website www.gracefinance.com.au.

Interest Rates Down Another .25%

2009-04-06T22:32:00.000-07:00

STATEMENT BY GLENN STEVENS, GOVERNORMONETARY POLICY
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 3.0 per cent, effective 8 April 2009.
Recent information from abroad indicates that the contraction in the global economy continued during the first few months of this year, and most assessments of the near‑term outlook have been further marked down. Considerable economic policy stimulus is in train in most countries, the full effects of which are not yet discernible, but which should help contain the downturn over the rest of the year. There are tentative signs of stabilisation in several countries, including China, though it is too early yet to judge how durable these will prove to be.
Conditions in global financial markets have continued to improve gradually, helped by progress towards a resolution of banking system difficulties in the United States and other major countries. Sentiment remains fragile, however, and the contraction in economic activity is affecting asset quality of financial institutions.
The Australian economy is contracting, though by less than those of its trading partners. Capacity utilisation has fallen from its peak, and will decline further over the rest of the year. With demand for labour weakening, growth in labour costs will probably also fall. Hence inflation over the medium term is likely to be lower than it has been over the past two years. Demand for credit is weak overall, though credit for owner‑occupied housing is picking up.
There has already been a major change in both monetary and fiscal policy in Australia. Market and mortgage rates are at very low levels by historical standards and business loan rates are below recent averages, reducing debt‑servicing burdens considerably. Nonetheless, the Board judged that there was scope for a further modest adjustment to the cash rate. The stance of monetary policy, together with the substantial fiscal initiatives, will provide significant support to domestic demand over the period ahead.

First-Home Grant Hit By Price Jump

2009-04-05T06:20:00.000-07:00

This is an interesting article on the state of the property market I thought I would share with you. It appears Austalians are rushing in too quick to get in on the increased grant. Before you make the biggest financial decision of your life - DO YOUR RESEARCH. I've seen smart people get ripped off in good times and I've seen idiots do their research and get bargains in bad times.

First-home grant hit by price jump
Bridget Carter and
Turi Condon April 04, 2009
Article from: The Australian

HOUSING prices at the lower end of the market have soared by as much as $20,000 since the Government more than doubled the first-home owners grant late last year.
The jump in prices, particularly in hard-hit areas such as western Sydney, has wiped out the benefit of the grant, which amounts to 14,000
for an existing home and $21,000 for a new home.
Mark Jennings, director of real estate agent Ray White Macarthur in Sydney's west, said sale inquiries had almost doubled to 700 a month.
"The entry level for the market was $250,000; now it is as much as $270,000," he said. One seller had put her three-bedroom house in the suburb of St Andrews on the market last November for $279,000, Mr Jennings said. The owner took the property off the market for
several months then offered it again for $289,000. A few days ago, the property sold for $295,000.
"There has been a definite pick-up in the last few months," Mr Jennings said. Carol Taylor sold her three-bedroom home in the western Sydney suburb of St Helens to a first-home buyer. She put the property on the market for $290,000, hoping she would reap $280,000. "It was
only on the market for 24 hours before it sold," she said. She got the $290,000.
Developers say the volume of lower-priced residential sales in NSW has
caught up with more buoyant states such as Queensland and Victoria. Investa property group's group executive of land sales, Lloyd Jenkins, said its lower-priced land and house and land packages accounted for 75per cent of sales, up from half of sales a year ago. At its two residental projects in Sydney's west and northwest, first-home buyer sales had increased 100 per cent in the year to December 31.
The story was similar in Melbourne's western suburbs.
The median price in the first-home buyer enclave of Caroline Springs was up 4 per cent to $324,500, a rise of $12,000 since October. Residex figures showed the median price in Broadmeadows was up 6 per cent and 4.5per cent in Niddrie.
Surging prices at the lower end will flow through to the middle of the
market, but slowly and in smaller percentage terms, said BIS Shrapnel senior economist Jason Anderson. The 400-basis-point fall in interest rates since September had had a bigger impact on the volume of sales and prices in the lower and middle markets, he said.
While the proportion of first-home buyers taking out loans had jumped from a low 15 per cent to 26 per cent since the grant was increased, they were still a relatively small proportion of the market.
BIS Shrapnel is forecasting housing prices to rise in all capitals
by June next year: Sydney, Brisbane and Canberra up 2per cent; Adelaide and Hobart, 3 per cent; Melbourne and Darwin, 4 per cent; and Perth up 1 per cent.
JPMorgan chief economist Stephen Walters believes the lower end of the market could deflate quickly.
The investment bank forecasts interest rates will remain low or rise only marginally by the end of next year, putting the cash rate at 2.5 per cent at the end of 2010. However, JPMorgan expects a big jump in unemployment to 9-10 per cent by late next year. "That's an extra 500,000 people losing their jobs," Mr Walters said. "I think boosting the
first-home market is policy that's a bit shortsighted. Why pump money into a market where the buyers are particularly susceptible to losing their jobs?"
Mr Walters is bearish on housing prices, forecasting they will fall by 10
per cent in the next year or so, mostly from the slowdown at the upper end.

http://www.theaustralian.news.com.au/business/story/0,,25287000-36418,00.html

1 Week Left For No Deposit Home Loans

2009-04-01T17:02:00.000-07:00

Nearly every bank and lending institution in Australia has increased the amount of deposit required to get a mortgage. From midnight 9 April the last of the best no deposit home loans will not be available any longer. However, you can get a pre-approval which will last for 90 days if you apply on or before the 8th April 2009. There is no cost for a pre-approval. With this particular lender you need to be employed in the same job for at least 6 months. This particular loan will allow you to lend up to 100% of the purchase price.
For this next season it appears most banks will require 3-5% genuine savings demonstrated over at least 3 months and a 5-10% deposit. There are still many loopholes. Some banks will accept "non genuine savings”. This means you can use a personal loan as a deposit or a gift from your parents. Also, part of your genuine savings can be the rent you are currently paying. If you're curious as to what your options are give us a bell. We can sit down and assess your personal situation and show you what is available. If you're not eligible now we can outline a plan for you to get into your first home in the near future.

Facebook | Grace Finance's Notes

2009-02-02T21:18:00.000-08:00

Facebook Grace Finance's Notes: "The RBA bank has just released that they have dropped the official interest rate to 3.25%. The lowest it has been since the 1960's!

If you've been thinking about getting finance to purchase a home, investment property or business then checkout my website www.gracefinance.com.au"

Facebook | Grace Finance's Notes

2009-01-28T18:47:00.000-08:00

Facebook Grace Finance's Notes: "On 2nd December 2008 the Reserve Bank of Australia dropped interest rates to 4.25%. Economists at Westpac, ANZ and Macquarie Bank are predicting that rates will drop to around 3% before heading back up. Right now you can get a loan for $300,000 and the repayments can be as low as $288 per week.

If you're thinking about getting a loan for a home or investment property or just fixing your existing loan drop me a line."

Contact Details

Website www.gracefinance.com.au

Email Inquiry@gracefinance.com.au

Phone 61 406 992 100