Welcome to the Monthly MCS Finance Solutions E-Newsletter
Since joining McConachie Stedman in October last year, Grant Besley has been overwhelmed by the response from clients requesting advice on home loans, investment loans, commercial loans, agricultural loans and equipment loans/leases.
Grant has been recognised by the Australian Loan Company (ALCO - chosen licensee for McConachie Stedman Finance Solutions) in their Lender Update newsletter as a 'Top Performer' for December 2009 and January 2010 Australia wide. The Partners and staff offer their congratulations to Grant and thought our clients would be interested in this achievement.
Grant's many years working in the Banking and Finance Industry has provided him with a thorough knowledge of issues relative to the economy.
We hope you find the following articles of interest and suggest you contact Grant for any of your finance needs at grant.besley@mccon.com.au.
Interest Rate Rise announcement made today!
At its meeting today, the Board decided to leave the cash rate unchanged at 3.75 per cent. Please click here to view the statement made by Glenn Stevens, Governor: Monetary Policy Decision.
Positive job growth indicated economic recovery
The jobless rate fell to 5.5% in December, indicating that unemployment in Australia has peaked and the economy is officially on the rebound. A pre-Christmas push to hire employees lifted the total number of people in the workplace by 35,200 - three times more than economists predicted. Economists quickly responded to the news by stating Australia is making an economic recovery. AMP economist Shane Oliver told the SMH: "We've turned the corner ... A continued rebound in job advertisements, along with the expected rebound in the economy, all point to further economic growth and a further decline in unemployment". Predictions in 2009 painted a much gloomier picture of unemployment for 2010 - the May budget had unemployment peaking at more than 8%. Economists now say that figures won't reach 6%. But it isn't all good news. The new figures have led some to speculate that the Reserve Bank of Australia will be under pressure to raise rates in February for the fourth time in a row. Major banks have suggested they will continue to move rates outside of the RBA's decision. Source: BN
Rate rise likely after surprise fall in unemployment
A surprise fall in the unemployment rate will undoubtedly put pressure on the Reserve Bank to lift rates for the fourth consecutive time when they meet again on 2 February. According to data from the Australian Bureau of Statistics (ABS), the unemployment rate fell 0.1 per cent in December 2009 to 5.5 per cent, its lowest level since April 2009. The number of people unemployed in Australia decreased by 10,600, or 1.6 per cent, to 639,400. The number of people in work grew by 35,200, three times more than economists had predicted. Yesterday, the government took credit for the drop in unemployment, with acting Prime Minister Julia Gillard attributing the fall to the government's stimulus packages. "The result shows what we have achieved by pulling together in tough times and getting behind the government's stimulus actions," she said. Source: Mortgage Business
Median house price to top $1m in 10 years
Sydney's median house price will top $1 million before the decade is out, new data from Residex has found. Just a decade ago, Sydney's median house price was $328,000 with few believing it would surpass $500,000. It is currently around $630,000. Residex chief executive officer John Edwards said this level of growth is expected to continue throughout the decade, which would take properties to approximately $1.2 million. "Traditionally, Sydney houses have experienced a price growth of 8 per cent. Over the past couple of years, this level of growth has fallen to approximately 6.5 to 7 per cent," Mr Edwards told Mortgage Business. "But, even if we calculate what the median house price would be at the end of the decade based on this lower growth rate, we should still see properties in the inner city top $1 million before 2019." Mr Edwards, said a one million price tag on a Sydney property would force a lot of Australians to rent because they simply would not be able to afford a house in the inner city. "Blue-collar workers would be pushed out of the bottom end of the market and into rental property. Those employed in lower middle management would be forced to move into cheaper homes, while middle and upper management would buy typical housing stock," he said. However, it is not just Sydney dwellers that would be faced with unaffordable homes. "Melbourne is currently 10 years behind Sydney, however, it is gaining on the city fast. I expect by 2019, Melbourne will only be five years behind Sydney in terms of house prices." Source: Mortgage Business
From time to time Grant receives information from Australia's leading banks and believes it may be of interest to McConachie Stedman clients. These documents are quite detailed so links have been provided for you to view at your leisure.
Commonwealth Research - 'CBA Agri Update'
This article was written by Commodity Strategist Luke Matthews and outlines the United States Department of Agriculture (USDA) Report Review for January 2010. Click here for more information.
Commonwealth Research - 'Economic Prospects'
This article covers outlooks for the International Economy, Australian Economy, Australian Interest Rate Outlook, AUD Outlook just to name a few. Click here for more information.
Westpac - 'Economic Briefing'
This article touches on the Economic update for Australia, US & Europe. Click here for more information.
Westpac - 'Australian Weekly'
Click here for more information.
