For the 14th month running, the Reserve Bank of Australia has left the official cash rate at 2.5% for the month of October 2014, this being the most stable the cash rate has been in Australia for more than 10 years. Looking back in time to just over 6 years ago in August 2008, the official cash rate was sitting at 7.25%, and a massive 4.75% higher than the current level.
In looking forward, a survey was recently conducted by experts at Finder.com.au, drawing in 28 experts from accross the country, including Economists Michael Blythe from Commonwealth Bank, Savanth Sebastian from CommSec, Paul Bloxham from HSBC, Janu Chan from St. George and Michael Witts from ING Direct, to understand the anticipated direction of interest rates in the next year. The consensus was all of the experts are betting on a cash rate rise next year, with an average forecast of June 2015. Notable also, that all had correctly anticipated that the Reserve Bank would leave cash rates on hold for October, as they have.
Given that for most of us, our home and our home loan, are our biggest investment and biggest expense every month, it is important to understand how you are managing your home loan, what your priorities are (set and forget, or focus on paying it down, or a bit of both?), and what an increase in interest rates could mean for you and your family. Thinking about it, we all consciously have house and building insurance to protect our homes in case of emergency, yet If interest rates were to increase, what is the impact going to be to your cash flow and your lifestyle and the ability to protect your asset? How can you protect yourself and your home, or understand the likely implications, to have a plan and contingency in place?
Is it time to be proactive instead of reactive in understanding what the implications would be, and setting a plan in place to manage the anticipated changes? Absolutely!
At Get Smart, we have the expertise, skills and resources to analyse your cash flow for you, we want to understand what is important to you, and make sure that your home loan compliments your life, rather than controls or consumes it. It really is easy, and brings so much peace of mind, for so very little cost in comparison to the reactive scenario.
Want to understand more? Contact us, we want to see you succeed as much as you do, and we have the know how to make it happen!
Celebrating Our Achievements, Lessons Learned and Looking Forward at Get Smart Financial Solutions
This week Get Smart was privileged and honoured to be recognised as a Platinum Achiever in the industry, and we spent the week in Ho Chi Minh City getting to know lots of other industry professionals.
We spent time sharing ideas, insights and inspirations, but also mixing with those that understand what it takes, and the sense of reward when your clients to achieve what they seek to, with the help of our experience, expertise and knowledge guiding and propelling them not only faster to their financial goals, but bigger than they dreamed possible.
Lessons for the week?
While professionally stepping outside of the square is never a question, personally it has also been a massive learning curve and opportunity for growth.
That time removed provides opportunity to step back and give greater thought and clarity to our direction, and start forward planning rather than getting bogged down in micromanagement.
Get Smart is kicking some serious goals, and it is due to the passion and drive we have for what we do, and for the vision we have for our clients.
I am my own worst critic, but perhaps I should cut myself a little slack... Perhaps while I will always set the bar pretty high, perhaps be a work in progress.... an evolution...
I achieve being nicer to myself and a greater sense of balance when I have had more sleep... (who would have known!)
That this time next year, I will look back and be proud of what I and my clients have achieved...
What have you learnt this week?
Home loans: "How does the buying process work, and how will I know what to expect next?"
"How does the buying process work, and how will I know what to expect next?"
What happens once the hammer falls?Here are the five steps to get you from home buyer to home owner.
Sign contract and pay deposit
It is important your conveyancer or solicitor inspects the contract of sale before you sign.
If buying at auction, you’ll sign the contract and pay a deposit (usually 10%) on the spot.
If buying through a private sale, you may pay a holding deposit of between $500 and $1000 to show good faith. You’ll then pay a larger deposit (usually 10%) when you sign the contract.
A private sale contract may include a cooling-off period, which enables you to change your mind and withdraw from the contract. You should check with your conveyancer or solicitor if a cooling-off period applied before exchanging contracts. It’s important to note that the length of cooling-off periods varies by state.
Your lender will perform checks, which may include a property valuation, before approving the loan and issuing a loan contract.
In the days preceding settlement, you should conduct a final property inspection to ensure all is as the contract states, and that the property and its fixtures and fittings are in good shape.
On the day of settlement, you must pay the balance to the seller. Your conveyancer or solicitor will organise the transaction, plus the payment of additional costs such as utility adjustments and legal fees.
Title deeds (if any) and mortgages will be registered at the lands office in your state or territory.
Finally, you get the keys!
Have more questions? We have the answers. Get in touch, and contact us today!
Rachael Bland – Founder & CEO