Interest Rates

Will RBA leave rate rise for another day?

The Reserve Bank of Australia Board meets today to decide the fate of homeowners mortgage rates, and whether to raise interest rates, or to leave them alone.

Interest rates RBA tipped to leave rate rise till later

 

RBA to leave rates as is?

Our tip is that homeowners and home buyers are safe. The RBA will not raise the official cash rate till the picture of the Australian and World Economies becomes clearer.

Sudden collapse of key indicators for the Australian Real Estate and economy.

The Australian economy was travelling smoothly upward just a couple of months ago.

Since then job ads and full time job vacancies have headed south and the Queensland economy figures are in, with the QLD flood damage and loss of mining, tourism and agriculture revenues caused by the floods is dragging Australia’s figures down.

 

Retailing is cactus

Retail sales are soft as people have stopped spending like there was no tomorrow, and small retailers are hurting. In Queensland many flood damaged shopping centres are not being refurbished and many traders are not returning. This means the ones that have returned are not getting the sales they once would as even anchor tenants are reluctant to reopen.

 

Real Estate sales torpedoed

Home sales, both established homes and new home contract sales have hit the skids in the real estate housing markets around Australia. As an example I live on a “dress circle” street in Northern Gold Coast area, and sales that once happened in days or weeks in my street are now failing to close in 3 months.

The local real estate agent tells me that home prices are down 10 per cent in the area on what they were 12 months ago.

This real estate slump spills into new home sales several ways ways.

Homeowners cannot move up because they can’t sell their home.

A glut of unsold homes means new home buyers can more home for less money by buying a used home, and they save money by not having to build the home, and spend a year renting.

When homeowners do find a buyer its for less than expected, so the new home sale collapses and the the established home is taken off the market [2 potential sales gone].

Real estate land prices are too high for home owners to sell and move up, so land sales are down and I believe that in this market, land prices are $100,000 over priced.

 

The Good side to this real estate gloom

The good news out of all this property gloom is that there are bargains all over for people that do buy a home right now. You can really push the envelope on home price reductions right now, and you can take your pick out of lots of great homes. When the market is hot, you have to rake over the leftovers of homes that nobody really wants. The low prices mean that interest rates rises are easier to cope with.

RBA rate rise warnings just hot air?

The Reserve Bank has been making noises over the last couple of months about a “rate rise soon”. But on the strength of the current economy right now this seems just hot air. And that’s not a bad thing. It good to remember that threat of a rate rise costs dampens housing demand, but costs homeowners no more in mortgage repayments. The downer is that it scares a home buyer out of offering you more for your home, or making them decide not to buy altogether.

 

Our Real Estate Tip.

Buy a home in this buyers market. Interest rates are still low.

We are tipping August or September as the likely time for an interest rate rise, so mortgage rates should remain low for a while longer yet.…

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Buying a Home

Is buying a home really the solid gold investment people say it is, or just an illusion we take as true?

If you ask an economist they would tell you that buying a home that someone else built is not an investment. In fact you could argue that the person that built the home was the investor, as he added housing stock to the economy and paid for some of the infrastructure.

 

How an economist views buying a home for investment

In the economic world, an investment requires sacrifices of consumption today to improve the capacity of the economy in the future. Plant and equipment, commercial buildings, new ports and rail infrastructure are examples.

The problem for an economist is that homes changing ownership does not bolster the nation’s economic capacity. Though it may help the Real Estate Agents and industry make profits running their service businesses.

The way a home seems an investment is that due to the ability to leverage the purchase of a home with a home loan, so that any price growth due to demand or inflation is seen as a capital gain that seems to make it worthwhile.

 

Is buying a home a gamble or a hedge against inflation?

Economists would argue that buying a home is a gamble, with the homeowner having no control over the outcome of the performance of his or her investment. The birthrate, immigration rates, inflation and availability of new developed land all effect the value of established homes.

 

How medical breakthroughs have increased home values

I would argue that medical breakthroughs have played a bigger part in property values than most people give it credit. Why? Because people are living longer and staying in their homes longer due to better health and longevity mainly due to medical care and health advise.

Will history no repeat itself and the glory days of home value increases return

Homeowners made a lot of money owning homes from the 1970′s till recently. But the recent past, and the projected future tell a different story. Home values have fallen and may fall more.

 

I do believe that there will be raises in the future if only moderate, and this will depend on future migration and interest rates.

Buying a home is best done for family security reasons

The fact is the buying a home is an investment, but not necessarily a financial one. Its investment in stability, family and a sense of security that many people renting never experience.

On the basis that you have to live some where, if you have a stable job, a stable relationship and are settled in your community it makes sense to own your home and “put down roots”. In other words ownership has a value worth “investing in”, even where no capital gains are likely.

By the same token if you are taking a short term view on any of the above, [less than 5 years], then renting may be your better option.…

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Villas In Noida

Noida is that the quickest developed town of Uttar Pradesh. Noida offers the simplest attainable infrastructure for residents, business, corporate and educational institutions. As results of that the city has turned to be most preferred destination for real estate development. The rise in population and growth of business has increased the demand for commercial and Residential Property in Noida. Hence, real estate builders starts the development work on a large scale which offers quality residential township with most flexible property that suits to anyone’s requirement. One would realize reasonable furthermore as premium quality of land developments, from luxury residential apartments to spacious villas in Noida.

 

There are some residential projects that offer state-of-the-art villas in Noida.

Jaypee Kingswood Oriental Villas In Noida – Jaypee group is launched new range of luxury villas in noida named Jaypee Kingswood Oriental. The Kingswood Oriental villas includes premium residences golf course facing, with AN expansive and exciting read of golf greens on one aspect and a chip & putt golf links on the opposite.

Jaypee Kingswood Oriental Villas are available in 2 sizes, with a settled space of roughly 3700 sq ft. and 4600 sq ft. Jaypee villas has different layout styles and the value of those exclusive villas starts from Rs 3 crore at a basic price of Rs 8,100 sq ft every villa have 3 floors.

Jaypee Villas – Kallisto in Greek means that “Most Beautiful”. With stunning tree lined walkways and personal gardens, the Kallisto Court square measure exclusive totally finished 2 construction Townhomes with a coated space of 325.16 Sq.Mtrs to 418.06 Sq.Mtrs (3500 to 4500 sq.ft.) Set ideally amidst the eighteen & nine hole Graham Cooke golf facility, these homes provide exciting views of the golf links, lakes and greens.

Rigorously planned for optimum privacy, these 5 bedchamber suites embody a spacious master lounge, a boutique-style room, a room with all fashionable facilities and a lavish lounge space. The surface house options a improved terrace, summerhouse and a superbly manicured non-public garden and a non-public pool wherever you’ll be able to relax and luxuriate in.

There are variety of other real estate residential projects that serve with villas in Noida of great comfort and style.

 

The Real Estate sector is another time booming and builders square measure feat no stone unturned in luring customers with engaging packages. Since the time the Noida motorway became operational, the important estate round the stretch has seen an amazing response. Noida-Greater Noida motorway is witnessing a number of the quickest pace of construction activities within the Noida.…

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Real Estate Noida

Supertech Orb is one of the finest of Supertech residential apartments present in Noida which excels in delivering the features desired by its customers. The venture is providing all modern services inside this unique township for its inmates. Continuing on Supertech Limited, the company is a real estate enterprise launched by the Supertech Group which with time has become famous for its quality work in various areas. Being positioned in noida sector 74 is an attractive lifestyle investment. As the township is part of Supertech society, these residences enjoys unlimited benefits of a planned of supertech. The venture is located in Noida which is another feature working in favour of these apartments. As a unique township with premium features Supertech Orb Sector 74 have become the recommended position for property seekers and consultants alike. Noida is replete with an assortment of revered, shopping centres, IT, ITES and SEZ’s, education institutions, healthcare and recreational places; hence, making the town a hot favourite amongst people from across the nation.

 

Supertech Orb Sector 74 Noida – Location map

Supertech Orb Noida are amazing pieces of land surrounded by almost every modern amenity hence making this place a heaven on earth. Its location by the noida sector 74 makes these residential apartments ideal for daily commuters another feature enhancing the connectivity of this project is DND Flyover which connects this place to the national capital. These two links further connect this residential township to Delhi & NCR. Commercial, residential, retail and recreational options are available. Able professionals who choose to live in this township are the ones which will be profited the most as major employment hubs like South Delhi and Connaught Place are located minutes away from township..

Supertech Orb Sector 74 Noida are extremely ductile residential apartments which are available in numerous plot sizes these can easily vary anything between 2215 sq ft to 4270 sq ft, which makes these flats suited to all space needs. These well-planned flats are enclosed with eco-friendly and awes-inspiring greens to create the weather relaxing and contamination free. Having reposeful greens and profitable water-bodies around the residence create this venture stunning and liveable. Facilities for day-to-day needs such as secured manned entry gates, power & water, multi-level car parking, and much more are available at your beck and call.…

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