October 08, 2013
At its meeting on the 1st October, the RBA again decided to keep the official cash rate on hold at 2.5%. In his statement, Bank Governor Glenn Stevens said cash rate cuts since late 2011 have “supported interest sensitive spending and asset values. The full effects of these decisions are still coming through and will be for a while yet.”
Mr Stevens also said that the Australian dollar, although recently higher, was still about 10 per cent lower than its level in April and that a lower level than present “would assist in rebalancing growth in the economy”. Thus, “the Board judged that the setting of monetary policy remained appropriate”.
Property News: Predictions of Growth for SEQ
John McGrath’s spring report contains very rosy forecasts for property performance, particularly for South East Queensland which he forecasts will deliver “double-digit price growth annually over the next three years”. McGrath cites low interest rates, investor activity and demand from Chinese buyers in all capitals as the drivers which will underpin the national recovery that he is predicting.
Cameron Kusher offers a much more conservative view, saying that although the housing market is once again back in a growth phase, “the magnitude of the increase is less than what was recorded during previous growth cycles”. However, Kusher does conclude that Brisbane historically has experienced longer growth periods than southern capitals and that “we may start to see stronger value growth conditions as the affordability of (Brisbane) improves relative to the other major capital cities”.
Local History: Cleveland
Did you know that Cleveland was once a candidate for a major port to replace Brisbane? At the time (around 1850), Brisbane was troubled by sand bars across the mouth of the river. Cleveland Point, by contrast, was closer to the southern passage (the entrance to Moreton Bay between North Stradbroke Island and Moreton Island). It is said that Governor Sir George Gipps visited Cleveland Point and, upon disembarking his boat and sinking up to his waist in the mudflats, became so annoyed he immediately changed his mind.
Outings in the Redlands
Why not take a day tour (or even a night-time ghost tour) to St. Helena Island to learn more about the fascinating history of Queensland’s most historic island as a high-security colonial prison. Interestingly the island, now a national park, has its own permanent supply of water via a spring in the centre of the island and many migratory birds use the island as a watering hole.
Find out more here: http://www.sthelenaisland.com.au/
Free Home Loan Seminars:
Please come to one of my free seminars. Every month I offer informative sessions for home buyers, first home buyers and property investors.
FIRST HOME BUYERS SEMINAR, 15th October, 6.30pm
PROPERTY INVESTMENT SEMINAR, 22nd October, 6.30pm
BUYING A HOME SEMINAR, 29th October, 6.30pm
See my Seminars tab above for details and booking.
Make and attend an appointment with me before 28th October for a chance to enter into the draw to win $5,000. Read more on my new-look Facebook page: https://www.facebook.com/photo.php?fbid=664783720216045&set=a.517235451637540.129377.432126413481778&type=1&theater
Don’t forget that our home loan service is free of charge to you!
I can assist you with motor loans and equipment financing too.
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