Blog – Oxygen

By CathMcFarlane

On May 16, 2013

Interest Rates Update | May 2013

Rates Drop Even Further The May meeting of the RBA surprised everyone with the decision to reduce the cash rate by 0.25%. This time the major Banks moved very quickly, with all passing on the rate cut in full. ANZ cutting even further by reducing their variable rate by 0.27%. What will happen over the coming months, given the surprise this month some economists are predicting further cuts, whilst others are suggesting the Reserve Bank will watch what happens with the economy over the next few months....

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By CathMcFarlane

On May 16, 2013

May 2013 Investment Market Update

By PimJohn van Gestel, General Manager, Oxygen Financial Services Published 16 May 2013 The past month has seen some positive economic signs with Glenn Stevens and the Reserve Bank deciding to lower the cash rate by 25 basis points to 2.75 as well as continued positive signs both locally and offshore. But the focus right now is on the budget. First, the cash rate being reduced may be considered at emergency levels in response to the global financial crisis in April 2009. However, the simple conclusion...

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By CathMcFarlane

On May 15, 2013

Economic Indicators Affecting Property

People often ask me what’s going to happen in the property market next. I’m happy to share my thoughts and observations, but another way is to simply take a look at the key indicators of the economy. Of course, the economy isn’t the only thing affecting the market. For example, the market is also affected by social trends, such as the aging population and more people living alone creating higher demand for apartments. Government incentives such as the First Home Owners Grant can also have...

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By Oxygen

On April 11, 2013

Interest Rates Update | April 2013

Fixed Rates Remain Low The April meeting of the RBA decided to leave the cash rate unchanged, the third meeting in a row with rates unchanged. With improved economic data the market is becoming less certain about future interest rate cuts, with some even speculating the next cash rate move may be upwards. Given the RBA did not move, Banks have continued to follow suit with no major moving their variable rates. On the fixed rate front, one major has started increasing their fixed rate offers. However,...

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By Oxygen

On April 10, 2013

April 2013 Investment Market Update

By PimJohn van Gestel, General Manager, Oxygen Financial Services Published 11 April 2013 This month has seen some key and interesting movements in both the investment markets and closer to home, the superannuation environment. Global equity markets continues the upward trend, however recent North Korean worries and a disappointing jobs number have recently put the rally on hold. Employment went up by only 88,000 in March instead of the expected 200,000. I believe this to be a short term bump with...

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By Oxygen

On April 10, 2013

Cheaper to Buy First Home Today Without $7,000 Grant

It’s such a shame to see first home buying slump to such low levels in NSW and QLD since the scrapping of the $7000 grants for established properties last October. As you know, these grants were replaced by incentives for purchasing new or off-the-plan in an effort to generate activity in the housing construction sector. It’s not a bad plan because in theory, the grants should stimulate the housing sector and create jobs, which is great for the economy; and an increase in new housing would go...

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By Oxygen

On March 13, 2013

Interest Rates Update | March 2013

Fixed Rates Remain Low The RBA decided to leave the cash rate unchanged for March, as they continue to watch the economy. Whilst the Banks followed suit and left their variable rates untouched, fixed interest rates, particularly for two and three year terms remain very attractive. Some lenders continue to offer rates below 5%. Now may be the time to discuss “fixing” a portion of your loan whilst keeping the remainder variable. This allows you to have certainty with your repayments for the fixed...

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By Oxygen

On March 13, 2013

March 2013 Investment Market Update

By PimJohn van Gestel, General Manager, Oxygen Financial Services Published 13 March 2013 Global equity markets rallied last month following a temporary delay in the US Debt ceiling, upbeat earnings and improved economic data. We saw a new all-time high for the DOW and this week we expect the S&P 500 to break through its all-time high close wiping out the statistical memories of the Crash of 2007-2009. Of course, the real life recollections are harder to wipe out, but it’s starting with investors...

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