10/09/2010
First National Real Estate Merrylands Principal, Sam Bastawrous, says would-be renters finding it tough to secure a rental property should not despair – a bit of creative thinking should see them nestled nicely in the property of their choice.
“The rental market is continuing to tighten, with vacancy rates getting lower and rents rising steeply in some areas, and it is time for those seeking rental accommodation to think outside the box and get creative if they really want to secure their dream accommodation,” Mr Bastawrous said.
“Competition amongst potential renters is tough at the moment and for a lot of them, they are finding themselves left out in the cold even though they fit all the selection criteria.
“Yet demand is still growing, and supply is still falling short, so renters are finding they have to go above and beyond to secure the desired accommodation.
“Some are resorting to offering landlords more than the rental being asked, others are providing references not just for themselves, but for their pets as well.”
According to Sam Bastawrous, investors are also making a comeback, as reported in First National’s Property Outlook, which may force prices up even further.
But, Sam does have some advice which may assist renters in their quest for increasingly elusive accommodation:
* Refine or change your search criteria. Consider factors such as location, property features and price and be willing to compromise by looking at properties in neighbouring suburbs, or that offer slightly different features.
* Make sure when you find a property you think is right that you have all the information you will need to apply for the property. Being properly prepared is often half the battle. You should have to hand your personal identification, referees and details about prior rentals. Any written references with contact details from previous estate agencies will also speed up the process.
* Read and complete the application form fully – be as comprehensive as you can be as this will make the landlord’s job much easier in assessing and processing applications.
* Don’t limit your efforts to the one property – look at and apply for as many as you think will meet your needs. Once you are accepted at one property, make sure you withdraw your application for any of the outstanding ones.
* A great way to stand out from the crowd is to visit and introduce yourself to agents managing properties in the area you are looking in.
“But the best advice I can give, is to contact a our Merrylands First National office and talk to one of our advisors, or at the very least visit our website, both of which will provide some great advice and may even have the property you are looking for,” Mr Bastawrous said.
20/09/2010
Only renewed troubles in the world economy look like stopping the Reserve Bank of Australia from raising interest rates again before the end of the year.
Addressing a business function in regional Victoria today, central bank governor Glenn Stevens said the largest resources boom since the late 19th century is likely to propel Australian economic growth to something above trend in 2011.
‘‘We think that means that the fall in inflation over the past two years won’t go much further,’’ Mr Stevens told the Foodbowl Unlimited Forum lunch in Shepparton.
However, he said, there were risks to this outlook - a double-dip recession in the United States, a bigger than expected slowdown in China, or the resumption of financial market turmoil that damages confidence.
‘‘But if downside possibilities do not materialise, the task ahead is likely to be on managing a fairly robust upswing,’’ he said. ‘‘Part of that task will, clearly, fall to monetary policy.’’
Financial markets were quick to heed the governor’s warning, pricing in a near 80 per cent chance of a 25 basis point rate rise by December.
The dollar also rose by nearly half a US cent to 94.42 cents in late afternoon trading, but remained shy of Friday’s 25-month high of 94.70 cents.
‘‘The speech leaves little doubt that the next move in Australian interest rates will be up,’’ ANZ’s head of Australian macroeconomics Katie Dean said.
‘‘The tone of the speech also suggests that it will take more than one further interest rate to manage the challenges of the Australian mining boom.’’
She expects the central bank could move as early as the October 5 board meeting given the strength of the labour market that has seen the jobless rate sink to near 5 per cent.
The RBA on Tuesday will release the minutes of its September board meeting, when it left the cash rate unchanged at 4.5 per cent for a fourth consecutive month.
‘‘The language in tomorrow’s RBA minutes will be particularly important,’’ Commonwealth Bank of Australia economist James McIntyre.
Mr McIntyre favours the central bank holding on until the November meeting and after the September quarter consumer price index (CPI) release on October 27. ‘‘But we recognise the risk of early action,’’ he said.
A large proportion of Mr Stevens’ speech was spent explaining to the rural audience why there could only be one interest rate setting, even though a given region or industry may not feel the strength or weakness of the overall economy.
‘‘In fact, no region or industry may be having exactly the ‘average’ experience,’’ he said. ‘‘It is this phenomenon that people presumably have in mind when they refer to monetary policy being a ‘blunt instrument’.’’
He said it was impossible to have different rates for regions and industries without each area having its own currency or having ‘‘draconian’’ regulations that prevent savings flowing from one region to another.
‘‘Australia is always likely to see some differences in economic experience by region,’’ he said. ‘‘What is remarkable, in fact, is that the differences are not, in the end, larger.’’
He said this was testimony to the flexibility within the national economy that had been built up over time, and to the design of policies that aimed to lessen the more stark differences that might otherwise occur.
22/09/2010
THE dollar has continued its unrelenting upwards rise, surging through the 95-US-cents mark in overnight trading.
It reached 95.64 US cents during the overnight session - its highest level since the global financial crisis - but had fallen back slightly to 95.53 US cents by 7am (AEST).
At 12pm (AEST), the local unit was trading at 95.64 US cents, its highest since August 1, 2008.
The dollar has now risen an impressive 17.2 per cent since May, driven up by a strong domestic economy, weakness in the US dollar and relatively higher local interest rates. Stronger interest rates relative to the rest of the world create demand for the dollar, further pushing up its value.
HiFX senior trader Stuart Ive told AAP that the dollar pushed higher overnight after the US Federal Reserve suggested it stood ready to further stimulate the US economy, raising fears it might print more dollars to do so.
The increased supply of money tends to cheapen its price relative to other currencies. The tactic has been used as part of the US response to the global financial crisis.
A stronger dollar brings both benefits and disadvantages for the country.
Overseas travel and imports - such as electronic goods like iPods - become cheaper as the dollar climbs in value.
The Reserve Bank does not target a particular exchange rate, but cheaper imports tend to help the inflation level stay lower.
This can help keep the underlying inflation rate within the 2 to 3 per cent target band of the central bank, reducing the need for its board to raise official interest rates.
Although, Reserve Bank governor Glenn Stevens warned this week that official interest rates were on the way up. And an ex-Reserve Bank insider predicts that five rate interest rises are on the way between now and the end of 2011.
A strong dollar can hurt businesses, particularly manufacturers, that export overseas or compete locally with imports.
It also means that our tourism industry suffers as it becomes relatively more expensive to holiday Down Under than travel overseas.
For farmers, the higher dollar is a mixed bag. It means their products become more expensive in foreign markets but reduces the costs of imported equipment.
The resources sector is relatively protected from a rising dollar as commodities like coal and iron ore are sold in US dollars. But local miners will lose when they repatriate their earnings.
There is now talk that the dollar may reach parity with the US dollar, something that has never happened since it was floated in 1983.
Its peak since the currency was floated was in July 2008, when it reached 98.5 US cents.
Data compiled by Bloomberg shows that the dollar is 27 per cent too expensive, with predictions it would weaken 6 per cent by the end of the year.