Don't Waste the Interest Rate Reductions

INTEREST RATES TO REDUCE AGAIN IN DECEMBER - 19/11/2008 Interest rates are expected to fall another 0.75% in early December . If you are a home loan borrower you need to make a strategy right now regarding the savings that are now coming by way of reduced homeloan payments and fuel costs. Don't foolishly spend this extra money, use this opportunity to make extra payments on your loan and get ahead. Remember both good and bad times don't last forever, and you need to provide for all occasions before they arise. Download our free calculator http://www.rescueme.com.au/calculators.html and see what a difference small extra payments will make over the term of your loan. You now have the ability to make quite large extra payments and save a huge amount of money, don't waste this opportunity.

Saved by the Financial Crisis

SAVED BY THE FINANCIAL CRISIS - 12/11/08 - One lesser talked about result of the financial crisis is that many home loan borrowers who until recently have been facing ever increasing mortgage payments, are now looking at substantially reduced home mortgage payments because of the lower interest rates that are now in effect. Those who have been struggling to hold onto their homes, may contact their lender to see if they can convert home loans to interest only for a year or two to reduce total commitments. Debt consolidation is increasing as borrowers look to place expensive credit card debts against their homes at much lower interest rates. We are getting reports of many borrowers looking to fix rates for terms from 1 year to 5 years at the lower rates now on offer. We suggest that borrowers take care as rates are expected to reduce further. Consult a quality broker to get some guidance on future rate movements. We can be reached on 1300 309 656 or enquiries@rescueme.com.au if you would like to discuss this in detail.
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Buy a House Now - Tomorrow could be too late

If you are a potential new home buyer who hasn't owned a home before in Australia, the you will be eligible for the $14,000 First Home Buyers Grant until 30/06/09. On new homes that increases to $21,000.

We are predicting a noticeable increase in real estate sales in the sub $400,000 range between now and Xmas, with sales levels building over time and reaching a peak in June 2009. Our rational for that is that many home buyers have been sitting on the fence until now wondering whether to buy or wait. The increased grant reduces to former levels on 30/06/019 so those who have procrastinated will surge into the market in June 2009 to make sure that they get the grant.

Now we have a situation where interest rate are coming down fast, supply is good so prices are not galloping upward, the government is giving you all the deposit that you need, and state governments have recently reduced their stamp duty costs in some cases to zero up to $500,000. All of that spells a powerful incentive to buy within the next 8 months. However those buyers who wait until 2009 will face a reduced supply, and you know what happens when supply is reduced whilst demand has increased. You guessed it, prices in the lower end will jump about $20,000 or more wiping out the value of the home buyers grant if you move too late.

But of course life is like that, those who act quickly prosper, and those who dither will pay for their indecision. Others who don't move at all will get left behind again.

Interest Rates

I write articles on Interest Rates futures, and how this will affect housing in Australia. This is a hot topic at the moment with such turbulence in the world equity markets, and major problems in housing in the USA and UK.

My articles are on web page www.rescueme.com.au/financenews.html

I would be interested in constructive comments from others who are interested in thsi subject either professionally or from an investors standpoint. Any comments or ideas that would make my work more suited to what the public are looking for would be of interest to me.

Peter Fraser