Newsletter - March 2016

March 08, 2016
Vicki Wisely

Welcome to our March newsletter.  
 
The last few weeks has seen the newspapers and local media talking about nothing but positive growth for the Robina and Varsity area.  

The Robina Business Alliance (RBA) held a breakfast recently with Bernard Salt and Ben Burgess (RBA president) predicting the population of the Robina area will double in the next 30 years.  They spoke about the necessity for better roads, light rail and bus networks and a growing commercial core.  At the heart will be a the development of the land alongside Cbus Super Stadium into a 'Central Park' heart that will connect the medical precinct, retail and commercial areas via walkways.

So it seems that just as you thought our area was coming of age, we are about to take giant leaps to be a thriving city.

Read the full article here.....

 

Are we in a 'Housing Bubble'

 
Some market commentators are saying low interest rates are helping to artificially inflate the housing market and cause a ‘property bubble’, however market economics would suggest this isn’t the case.
 
To determine whether or not we are in a housing bubble, we need to look at the supply and demand for housing. Demand is driven by three things:

  • Population growth
  • Employment
  • The cost/availability of credit

According to data from the Australian Bureau of Statistics, Australia’s population grew in the 12 months to June 2015*, and these people need somewhere to live. As such, demand for property is likely to remain strong.
 
In addition, there is nothing to suggest we should soon see a significant spike in unemployment or interest rates. If we were going to see a massive slump in house prices, not only would we need everybody to sell their properties at the same time, but we would need to see a significant oversupply of properties, which we don’t expect to happen.

Strong economic data including stable employment and a bounce back in consumer sentiment, provided the RBA no reason to cut the official cash rate this month. Interestingly, we are hearing many analysts saying there could be a cut before the end of the year, but with interest rates already sitting at historical lows, now is a great time to be in the property market.

 

1 in 2 Australians have never played the lender field
 
Its amazing that 50% of people will never change or review their financial lender.  The most common reason is that people feel a loyalty to their lender.  Its important to remember that your lender might not be loyal to you.

Imagine if you had your loan reviewed just once and saved $1000 per year - for 30 years - that equates to over $30,000 without even looking at the savings on your interest.

Read more .........

 


 

RBA Announcement
 
Unsurprisingly, the Reserve Bank of Australia has decided to leave the cash rate on hold at 2%. 

Strong economic data including stable employment and a bounce back in consumer sentiment, provided the RBA no reason to cut the official cash rate this month. Interestingly, we are hearing many analysts saying there could be a cut before the end of the year, but with interest rates already sitting at historical lows, now is a great time to be in the property market.
 

 

Posted in: News

Contact us today.


Additional Comments? * :