The Reasons Behind and Lessons from the Past.
05/09/2022

The Reasons Behind and Lessons from the Past.

What caused the Reserve Bank to move away from its previously stated plans?Namely… they were not going to move until:Inflation was comfortably in the 2%-3% range.Wages growth was above 3%.The reasons that threw the Reserve Bank off course were simple:Russia invaded Ukraine and has caused a global di

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Westpac Weekly 2nd May – Rate rise predictions
05/02/2022

Westpac Weekly 2nd May – Rate rise predictions

At the April Reserve Bank meeting the governor said he would:Wait for the release of inflation figures – which came out last week (April 27th ) at 3.4%.Wait for the release of employment / wage figures on May 15th.I listen carefully to Bill Evans – Westpac Chief Economist, who concurs, he also liste

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Interest Rates in 2022, an Important Message
03/25/2022

Interest Rates in 2022, an Important Message

I am writing again – to let you know how I think the interest rate scenario will unfold in 2022 and how to prepare together. We each have roles.The pieces are falling into place for the Reserve Bank to start to lift the cash rate.Inflation between 2% and 3% – is already in place.Unemployment under 4

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Rates and House Price – What Lies Ahead
01/31/2022

Rates and House Price – What Lies Ahead

House price rose by 25% in 2021 driven exclusively byLow interest rates,The need for more space to accommodate working from home.There was a segment of the property market that missed this – inner city units – which rose by only 8%.Unit blocks close to the city were the opposite of what the market w

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Customer Service is Taking Action to Create Value for Someone Else
12/13/2021

Customer Service is Taking Action to Create Value for Someone Else

How many times could you say that you went to a business seminar, and it changed your life – and that it is still your daily focus 20 years laterRon Kaufman, Singapore: 2001 – Ron Kaufman is who Singapore Airlines sought out in 1990 help them achieve their goal – “Service Even Other Airlines Talk Ab

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APRA, The Reserve Bank and Interest Rates
10/29/2021

APRA, The Reserve Bank and Interest Rates

The Reserve Bank has cut rates to low levels to encourage borrowing.This is a good thing.The strategy has worked.Housing and construction are the backbone of our economy – because they generate so much employment and activity.House price has increased – and that in itself is not a bad thing.BUT…Over

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Interest Rates in the Future – My Role and Yours – Plan for 4%
10/08/2021

Interest Rates in the Future – My Role and Yours – Plan for 4%

Bill Evans took up the Chief Economist role at Westpac in 1991 and has consistently been “getting the big calls right for 30 years”.When he talks – I listen.Bill Evans predicts (The Australian Sat 11th Sep 2021) “Interest rates will rise… starting in the first quarter 2023… and going up (in steps) b

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The game is up – The great bank RIP OFF is over.
09/22/2021

The game is up – The great bank RIP OFF is over.

Since the day ASIC reported back on a finding from the Royal Commission on charging older loyal clients more than new ones, I have refused to take a backward step on this issue… Because it represents the worst possible example of bank behaviour.In a related article (The Australian) – it notes that C

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On rates – an update on my February comments
06/18/2021

On rates – an update on my February comments

Banks and Commentators alike are saying again; “The next move on rates is UP – You must lock in now!”What complete twaddle! (Commentators are still feeling the need to say something to fill editorial space, and banks are still saying things out of complete self-interest).I only listen to the person

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How to choose the right lender – inside information from a mortgage broker
06/02/2021

How to choose the right lender – inside information from a mortgage broker

Amidst surging interest in property, there are record enquiries for loans.The Reserve Bank reiterates again that it will not be raising the cash rate until unemployment has a 4.x% on it and inflation has a 2.x% on it. (The Australian Sat 8th May)The Government initiative HomeBuilder is an incredible

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Investing in Property: What this property boom really teaches us…
03/08/2021

Investing in Property: What this property boom really teaches us…

Not long ago, regulators’ forced banks to cut back on investment loans. That period has passed, and this presents a new opportunity for investors.If you are 30 and buying for the first time, if you are 40 and shifting house, if you are 50 and know you need to invest – there are two typical responses

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Rates in 2021
02/03/2021

Rates in 2021

Banks and Commentators alike are saying this week; “The next move on rates is UP – You must lock in now!”What complete twaddle! (Commentators are back at work after the holidays and feel the need to say something to start the year, banks however, are saying things out of complete self-interest).I on

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Property Bloodbath…Journalists do love a headline…
02/03/2021

Property Bloodbath…Journalists do love a headline…

Last year when Covid hit there were predictions of gloom and doom for property – and they were well founded to an extent… BUT… Two things altered the course of events.The Government intervened with Jobkeeper to cushion the blow of Covid Lockdowns.The Reserve Bank intervened by dramatically cutting I

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Best Interest Duty
12/10/2020

Best Interest Duty

On January 1st new legislation for brokers comes into play – it is called Best Interest Duty.So, how do you actually find a broker who will act in your best interests?It is a sad comment on an industry of which I have been a part for 23 years, with multiple awards in that time, that a Royal Commissi

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Rates – Where to?
11/05/2020

Rates – Where to?

As of Tuesday, the Reserve Bank Cash Rate is at 0.1%, The Reserve Bank also announced it will buy Australian Govt 3, 5 and 10 year bonds to keep them at their desired target of 0.1%.So, if banks can be profitable with an interest rate margin of 1.8%-2.2% – then your home loan rate should be 1.9% to

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House Price Leads the Way to Recovery
11/04/2020

House Price Leads the Way to Recovery

Yes – you heard that correctly.Since January this year only Melbourne and Perth house price trends are negative.Sydney – up 1.8%Brisbane – up 2.1%Adelaide – up 3%Melbourne and Perth have their own temporary Covid issues.The interest rate on your home loan should now be well into the 2’s – and will h

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Further Rate Reductions on the Way
08/20/2020

Further Rate Reductions on the Way

As I suggested back in June, rate reductions are starting to flow through to new borrower deals.This is good news for my own existing clients because I review;Every loanEvery ClientEvery 6 monthsAnd where a reduction is possible seek that on your behalfYou will start to see these reductions flowing

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So Where Are Rates Headed?
06/09/2020

So Where Are Rates Headed?

This morning as I was sitting down to write on the (immediate and medium) future of interest rates, knowing that they are poised to head down again – two clients of long standing emailed me.One wrote to me – tongue in cheek;“I know (how much) you “adore” fixed interest rates, not, but now, locking p

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10 Financial Tips to survive Covid-19
04/28/2020

10 Financial Tips to survive Covid-19

Consolidate your finances. We often keep lots of accounts, with small amounts of money in them – if you have repayments for loans, and are concerned that you may be short of funds, round up those small accounts and put them all into the account that repayments are debited from.Redraw on surplus paym

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It’s Raining
03/31/2020

It’s Raining

If you’ve saved for a rainy day… It’s raining.These are the guidelines you should follow for your home loan or your investment loan – if you find yourself in difficulty.Depending on the level of difficulty you face, these are the steps you should follow… in order; If you have any available redraw in

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COVID-19 Response… Alan Says…
03/23/2020

COVID-19 Response… Alan Says…

Over the last week I have had several clients ask me what I both think and suggest in the current circumstances.I have been quiet since my email of 6th Feb when I highlighted what the Corona Virus outbreak might mean for the year ahead.There are too many opinions being espoused on social media – and

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Economic flu or just a cold?
02/06/2020

Economic flu or just a cold?

Economically they used to say, “when America catches a cold the world catches the flu”.At the moment because of the literal corona virus in China, the world is at risk of catching the economic flu.Aside from the presidential election and the post Brexit trade negotiations (both of which are the long

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Who’s been Naughty and Who’s been Nice…
12/17/2019

Who’s been Naughty and Who’s been Nice…

Dear Santa,I’ve been good all year,Most of the time,Once in a while,Never mind,I’ll buy my own stuff…All banks offer spectacular deals to new people.Then under the cloak of darkness (called “out of cycle” rate rises) – they claw margin back.Why do they do that? To be able to continue to offer the n

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11 factors to consider when looking for your best home loan
08/13/2019

11 factors to consider when looking for your best home loan

Before we start, the best tip I can give you is… DO NOT DO IT YOURSELF… It took me years to work out that when friends looked at my home renovations and said, “nice tiling … do it yourself?” it was not a compliment. They were being polite. The fact that they could tell I had done it myself said it a

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