When the Reserve Bank of Australia elected to keep the official cash rate on hold at 4.75 per cent at the beginning of the month, it was the tenth consecutive month that the same decision had been made and marked the longest period that rates have been on hold for five years.   

As opposed to being able to enjoy this extended period of steadiness, the market has experienced fairly volatile interest rate expectations, creating uncertainty and likely playing a role in the dampening of buyer activity in the residential property market. 

Only a short time ago economists were warning consumers to prepare not for if, but when, rates would rise.  But with the heightened concerns for global financial conditions that we have seen of late, expectations now look to be that rates will continue to be held, or even dropped.   

Understandably, such ambiguity surrounding the future direction of the official cash rate creates somewhat of a dilemma for home buyers looking to secure housing finance and raises the illustrious question – is a fixed or variable rate the better option? 

Traditionally, when rates have looked to track upwards, borrowers would seek to lock in an attractive fixed rate, even refinancing to do so, to protect themselves from potentially higher rates and thus more expensive interest repayments. 

Alternatively, in past periods where conditions have seen rates come down, many borrowers would choose to go with variable rates, positioning themselves to take advantage of the possibility of a lower mortgage rate. 

As we have seen in the years gone by, for buyers in the current climate, uncertainty surrounding interest rate movements have made the ability to decide on a fixed or variable rate quite difficult.  However, an article in the October issue of Your Investment Property magazine prompts borrowers to think about mortgages a little differently. 

Author Michael Lee encourages buyers to recognise that variable and fixed mortgage rates are both a gamble – there is not one that can really be considered a ‘safer’ option.  Fixing, he says, “is like betting against the bank because they know what interest rates are likely to do and always set their rates to come out ahead.”

In my opinion, this situation highlights not the importance of making the best decision with regards to choosing a fixed or variable mortgage rate, but rather how necessary it is to work with a mortgage professional to cater a finance solution that is specific to your situation.  Borrowing isn’t just about the mechanics behind your rate, but rather the features that are built into your package and the flexibility these entail. 

Every lending institution offers something different – with varying advantages and drawbacks.   Choosing to sit down with a lending professional who understands the ins and outs of a large number of different mortgage products is probably the safest ‘bet’ you can make to ensure you obtain the best possible financing solution at your time of purchase.  

If you would like to speak further to a mortgage professional about your borrowing options, please visit www.century21homeloans.com.au to find a CENTURY 21 Home Loans broker near you. 

Forbes has recently come to a conclusion that residents of Tri Cities Washington have known for many years, the Tri Cities is a geeky place. Out of all the areas throughout the nation the Tri Cities ranks 11 as the geekiest place to live. This ranking is mostly attributed to the fact that 11% of the population works in a field having to do with science, technology, engineering, or mathematics, right behind Seattle with 11.8%.

Those who live in the Tri Cities Washington know its more than that when they look around; science is a huge part of the Tri Cities.

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A do-it-yourself attitude is the main reason landlords opt not to use a property manager, followed by concerns over expense.

The findings were revealed in a survey conducted by Realestate.co.nz of its email subscriber base which was completed by 398 people.

The survey found a fifth of respondents identified themselves as landlords (21%), and a further 7% said they are or plan to be a property investor.

Realestate.co.nz chief executive Alistair Helm said he was surprised at the amount of respondents identifying themselves as involved in property investment.

“It’s a decent number and would probably give a sense that people haven’t given up on investment property – far from it – they’re pretty keen to keep in that area of future investment,” he said.

Helm said his initial perception was that the company’s audience would be “just regular home buyers or first time buyers.”

“Clearly the information that we provide is of appeal to people who are in the property investor market.

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House prices fell 0.6 percent in August, this more than reversed July’s rise and surprised economists who expected them to stay flat.

Nationwides chief economist, Martin Gahbauer suggests that; “the three months rate of change fell from 1.2% in July to 0% in August, suggesting that house prices have essentially stagnated over the summer.

The average house on today’s housing market in the UK fell by £2,817 over the month of August to approximately £165,914, making this month 0.4 % lower than August 2010.

Economist uncertainty, a lack of home loans and expectations that prices will fall further have combined to create a sluggish market.

The average number of sales per survey over the last three months fell by 1.4% a 26 month low.

Mortgages are the key to the property market. The vas

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I recently had a chance to sit down to enjoy The Foliage Issue of Yankee Magazine which I received earlier this week in the mail. When I lived in Chicago, taking a trip North along the coast of Lake Michigan was always a special treat during the fall; such beauty the crimson and gold leaves of autumn. But no place beats the beauty found along the coast of New England! Growing up in Connecticut I didn’t appreciate the brilliant color of the trees or they way the light plays with the color of grass in the marshes along the ocean. W

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