The Reserve Bank has delivered an early Christmas present and cut interest
rates today by 0.25 per cent.
The official interest rate is now 3 per cent - as low as it fell during the
Global Financial Crisis in 2009.
The cut comes after a recent batch of negative data about the domestic
economy. The 25 basis point drop is the sixth Reserve Bank cut since November
last year and will be a relief to home owners and business operators.
However, with things slowing down for the festive season, much of the impact may
be delayed until early next year.
Rates have now dropped 1.75 per cent since the current cycle of easing began
on last year's Melbourne Cup day.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly
interest cost of an average Australian mortgage.
The Reserve Bank board will now take a summer break and meet again in
February.
Tuesday, December 4, 2012
Tuesday, October 2, 2012
INTEREST RATE CUT
The Reserve Bank has cut interest rates today by 0.25 per cent.
The official interest rate is now 3.25 per cent. Rates were last this low in October 2009.
The 25 basis point fall is the fifth rate cut the Reserve Bank has made since November last year.
Rates have now fallen 1.5 per cent since the current cycle of easing began.
The cut comes after recent revelations that the domestic economy is slowing and amidst renewed fears for the health of the global economy.
The Reserve Bank faced a mixed bag of data when it met today including cooled commodity prices and state and federal budget cuts on the horizon.
"Many economists had been predicting one or two rate cuts by the end of the year,"
"Everyone was expecting a move on Melbourne Cup day, citing the fact that the Reserve Bank has moved up or down on the last six Melbourne Cup days. The central bank opted instead to step in today to stimulate the economy."
When the Reserve Bank next meets it will have the benefit of the September quarter inflation data, which is due out on October 24.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
The official interest rate is now 3.25 per cent. Rates were last this low in October 2009.
The 25 basis point fall is the fifth rate cut the Reserve Bank has made since November last year.
Rates have now fallen 1.5 per cent since the current cycle of easing began.
The cut comes after recent revelations that the domestic economy is slowing and amidst renewed fears for the health of the global economy.
The Reserve Bank faced a mixed bag of data when it met today including cooled commodity prices and state and federal budget cuts on the horizon.
"Many economists had been predicting one or two rate cuts by the end of the year,"
"Everyone was expecting a move on Melbourne Cup day, citing the fact that the Reserve Bank has moved up or down on the last six Melbourne Cup days. The central bank opted instead to step in today to stimulate the economy."
When the Reserve Bank next meets it will have the benefit of the September quarter inflation data, which is due out on October 24.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Monday, September 10, 2012
DIY BASICS
There are some tasks that even the most unmotivated DIYer should feel
embarrassed to pay hard-earned money for. A friend recently had a
painter around to paint one door and a window frame. Another called in a
handyman to put up pictures – at $80 an hour thanks.
Yet another replaced their lovely sweep of aged timber benchtops with brand new ones because they gave up finding someone to give the originals a sand and new lick of oil. It’s sad to realise there’s a whole graveyard of perfectly useable items out there, needlessly dumped, because someone didn’t have the time or wherewithal to make straightforward repairs.
Arm yourself with a basic tool kit and some simple know-how, and you’ll easily be able to tackle small jobs around the home – especially if you consult your obliging hardware store specialist about the specific hardware you’ll need for the job. Build up your knowledge and eventually you’ll fly solo.
The sorts of projects the DIYers should be able to handle after they've had a bit of practice, built up some confidence and got some tips and advice include; sorting out drips and leaks, tackling gaps and draughts, some basic woodwork, painting and refinishing surfaces, renewing caulking and grout, hanging artwork and installing some basic kitchen and bathroom fittings.
Here are the basics for some of those jobs.
You’ll need an electric or cordless drill and spirit level for any of these jobs, then the principles are the same. Important considerations are:
Putting holes in things is not something you should take
lightly. Holes in plaster can be filled and hidden fairly well and but
timber, tile and brick will show permanent scars of drilling mishaps.
If you have a stud wall, you need to locate the studs (the timber framing the plasterboard sheets are attached to) so you have something solid to attach to. The easiest is to purchase an electronic stud finder, otherwise tap along the wall to work out what is hollow and what is solid.
Make sure you are well away from any electrical wiring then to confirm you’ve found a stud, tap a small nail into the wall and make sure it lodges firmly into something solid. You want the centre of the stud for maximum holding power.
Brick walls are more straightforward, you’ll need a masonry drill bit and probably plastic wall plugs and don't drill into mortar between the bricks.
Centred and secured
Work out the exact spot on the wall where you want to hang your piece de resistance. This is much easier as a two-person job – two sets of eyes and hands. A useful tip is to cut out a piece of cardboard the same size as the picture you’re hanging and have your mate move this around until you’re happy with the position.
If you need it centred, use a tape measure to find the middle point on the wall. Use a spirit level to ensure it’s level, then mark the wall with a light pencil where the top of the object lines up. Now work out where you need to drill the holes. The length of the hanging wire or hook on the back should guide you on this.
Heavy objects like a mirror will need to be secured at a
couple of points and may need stronger fittings than a nail or screw in
the wall. Shelving that is taking books will need sturdy brackets at
regular intervals. A mirrored bathroom cabinet will need securing at
points top, middle and bottom.
A light picture can probably be hung on one screw and possibly even in the hollow part of the wall if it’s as small as say a framed photo. Things like towel rails will need the holes carefully marked out where you need to attach them to the wall. It's a case of making sure you have them carefully matched up and marked out on the wall.
At least one perfectionist, a measuring tape and a spirit level should be enough to ensure whatever you’re hanging is centred, at the correct height, level and plumb.
Consult the experts
If you’re doing any of these jobs for the first time, talk to your hardware store about what you are hanging and what you are fixing it to, and they will be able to advise on appropriate fastener and drill bit. This is crucial, as every project has different requirements and it takes experience to learn what load bearing mechanism is suitable for what.
There are lots of options available, from a lightweight picture hook, to basic screws, to wall plugs and screws, to heavy-duty Dyna bolts. Do not guess which you need, or your pilot project could, quite literally, come crashing down around you.
Patching and sanding walls
A professional looking paint job needs a
solid foundation – and a lot of that comes down to how competently you
deal with defects in plaster walls, like cracks and holes. A slapdash
approach will render your painting efforts a waste of time.
Patching a missing chunk of plasterboard or gaping holes is a bigger job (you need to “plug” those first), so we’ll assume you’re dealing with common wear and tear – something smaller than a fist.
Materials and tools you need are:
The right tools for the job. Most tools have specific
uses, if you don't want to buy the right tool, rent or borrow it. Using
an orbital sander on floorboards, as the chap is above, is a very, very
bad idea.
First clean out all loose particles from the hole and ensure
you start with a dust-free surface. Use a sponge to clean area. If it’s
cracked plasterboard you’re repairing, use a Stanley knife to neatly
trim the surface edges, making a v-shaped groove.
Using an appropriately sized filling knife, fill the hole with compound, pushing it well into the gap. If the hole is deep, you may need to apply a couple of layers to fill, allowing each to set before applying the next. You’re better to slightly overfill the hole than underfill it, as you can sand it back. Don't go overboard though, the thicker the compound the longer it will take to dry.
When the filler is dry, give it a really meticulous sand, finishing with the finest grade, so you have a smooth surface that is completely flush with the rest of the wall.
Patching woodwork uses similar principles, only you’ll use wood putty.
Grout and caulking
A great way to freshen up a kitchen or bathroom and prevent water damage, is to renew grout and caulking. As these products age they can get mouldy, discolour, deform, peel and crumble, this doesn't look great and will allow water and other substances to creep into crevices, cause damage and attract pests.
Carefully scrape damaged products out, clean the surfaces and apply new material according to the manufacturer's instructions.
The same applies for loose tiles. Remove the damaged grout and tile, clean and prepare the surfaces, glue the tile and re-grout.
Maintaining timber
Timber can be found around most homes and depending on where it is, will most likely need some sort of maintenance eventually.
Structures outside need the most care as they are exposed to the elements and can be more susceptible to pest damage. Be careful sanding and drilling treated timber, it can produce toxic sawdust. Scraps of this material should never be burned, again, because of the chemicals used to treat it.
Decks and outdoor furniture will generally need to be sanded (or prepared in some other way) and treated in some way at regular intervals. Decks usually require annual work.
The time between these jobs will depend on the materials used and the finish you're after. Some finishes and types of timber require less maintenance than others. Hardwood doesn't soak up products applied to them so they wear faster than the same product on a softwood.
Always check how the timber has been treated previously, you may be restricted in what you can apply over the top of existing products.
Always sand with the grain of the timber otherwise you will be putting gouges into it not, smoothing it out. Random orbital sanders are an exception to this rule, follow manufacturer's instructions.
Start with coarse sandpaper and work your way down to the finest one required to get the finish you want.
The type of timber and its current condition will determine what sort of sandpaper you start with.
Sanding blocks will help you sand evenly and make the job easier on the hands. Solid blocks are best for flat surfaces, spongy blocks allow sandpaper to be shaped around curved surfaces.
Sand evenly over surfaces, it's easy to get carried away in one spot and leave an uneven surface. Use long, light, even strokes for an even finish.
Throw away the sandpaper once it's clogged (and won't unclog) or worn smooth. Keep the surface fairly clean, loose grit will create scratches.
Be careful with carved or moulded finishes, don't sand down decorative details. Sandpaper can be folded and curved to get into some tricky corners, there are also tools on the market to help out with fiddly sanding jobs. Steel wool is recommended for some delicate jobs.
If you need to remove thick layers of paint, a chemical paint stripper may be an option. Be very careful using these chemicals and also be aware that the paint you're removing could contain lead and other harmful chemicals.
Certain timber finishes need to be approached with extreme caution, these include veneers, exotic grains, fine patinas and finishes like French polish. Don't sand away the bumps, bruising and colour in antique furniture or you will lose the character (and value) of the piece. Always consult an expert if in doubt.
Power tools can make jobs quick and easy. They also have the potential to cause a lot of damage if misused.
Sanding timber floors is a huge job and should never be attempted without some prior timber DIY experience. Damaging timber floors is not hard, fixing that damage can be very difficult.
Finishes for internal use include polyurethane, wax, oils and stains.
Safety equipment is essential, especially where you have dust and chemical fumes. Use the appropriate dust mask or respirator equipment as well as the other safety essentials like hearing and eye protection.
Yet another replaced their lovely sweep of aged timber benchtops with brand new ones because they gave up finding someone to give the originals a sand and new lick of oil. It’s sad to realise there’s a whole graveyard of perfectly useable items out there, needlessly dumped, because someone didn’t have the time or wherewithal to make straightforward repairs.
Arm yourself with a basic tool kit and some simple know-how, and you’ll easily be able to tackle small jobs around the home – especially if you consult your obliging hardware store specialist about the specific hardware you’ll need for the job. Build up your knowledge and eventually you’ll fly solo.
The sorts of projects the DIYers should be able to handle after they've had a bit of practice, built up some confidence and got some tips and advice include; sorting out drips and leaks, tackling gaps and draughts, some basic woodwork, painting and refinishing surfaces, renewing caulking and grout, hanging artwork and installing some basic kitchen and bathroom fittings.
Advertisement
Hanging pictures, mirrors, shelves, towel rails… You’ll need an electric or cordless drill and spirit level for any of these jobs, then the principles are the same. Important considerations are:
- What you are attaching to (brick or stud wall).
- How heavy the object is you’re hanging.
- What fasteners you need to secure it (Dynabolts, plugs, screws, etc).
- What drill bit you need.
- How to get it level, plumb and/or centred.
- Get some practice drilling into different surfaces. Harder and faster is not always the right answer. Get a feel for the material you're working with.
- Make sure you're not drilling at strange angles, ensure that your drill is at the correct angle, usually perpendicular to what you're drilling into.
- Use a depth attachment on the drill if you must not go further than a set depth.
- Make sure you always use the correct drill, drill bits and settings on your drill.
- Protect surrounding areas from accidents. For example, use tape when drilling tile to reduce the risk of the drill bit skittering off your hole location and damaging other tiles.
- Take care drilling timber. When the drill bit exits the underside of what you're working on you can cause damage. Drill from the good side to the back to avoid this problem.
- Pre-drilling takes time but it's better than splitting the timber you're working on.
If you have a stud wall, you need to locate the studs (the timber framing the plasterboard sheets are attached to) so you have something solid to attach to. The easiest is to purchase an electronic stud finder, otherwise tap along the wall to work out what is hollow and what is solid.
Make sure you are well away from any electrical wiring then to confirm you’ve found a stud, tap a small nail into the wall and make sure it lodges firmly into something solid. You want the centre of the stud for maximum holding power.
Brick walls are more straightforward, you’ll need a masonry drill bit and probably plastic wall plugs and don't drill into mortar between the bricks.
Work out the exact spot on the wall where you want to hang your piece de resistance. This is much easier as a two-person job – two sets of eyes and hands. A useful tip is to cut out a piece of cardboard the same size as the picture you’re hanging and have your mate move this around until you’re happy with the position.
If you need it centred, use a tape measure to find the middle point on the wall. Use a spirit level to ensure it’s level, then mark the wall with a light pencil where the top of the object lines up. Now work out where you need to drill the holes. The length of the hanging wire or hook on the back should guide you on this.
A light picture can probably be hung on one screw and possibly even in the hollow part of the wall if it’s as small as say a framed photo. Things like towel rails will need the holes carefully marked out where you need to attach them to the wall. It's a case of making sure you have them carefully matched up and marked out on the wall.
At least one perfectionist, a measuring tape and a spirit level should be enough to ensure whatever you’re hanging is centred, at the correct height, level and plumb.
If you’re doing any of these jobs for the first time, talk to your hardware store about what you are hanging and what you are fixing it to, and they will be able to advise on appropriate fastener and drill bit. This is crucial, as every project has different requirements and it takes experience to learn what load bearing mechanism is suitable for what.
There are lots of options available, from a lightweight picture hook, to basic screws, to wall plugs and screws, to heavy-duty Dyna bolts. Do not guess which you need, or your pilot project could, quite literally, come crashing down around you.
Patching and sanding walls
Patching a missing chunk of plasterboard or gaping holes is a bigger job (you need to “plug” those first), so we’ll assume you’re dealing with common wear and tear – something smaller than a fist.
Materials and tools you need are:
- Filling compound
- Filling knife (in a couple of sizes)
- Stanley knife (optional)
- Medium and fine-grade sandpaper
- Sanding block
The right tools for the job. Most tools have specific
uses, if you don't want to buy the right tool, rent or borrow it. Using
an orbital sander on floorboards, as the chap is above, is a very, very
bad idea. Using an appropriately sized filling knife, fill the hole with compound, pushing it well into the gap. If the hole is deep, you may need to apply a couple of layers to fill, allowing each to set before applying the next. You’re better to slightly overfill the hole than underfill it, as you can sand it back. Don't go overboard though, the thicker the compound the longer it will take to dry.
When the filler is dry, give it a really meticulous sand, finishing with the finest grade, so you have a smooth surface that is completely flush with the rest of the wall.
Patching woodwork uses similar principles, only you’ll use wood putty.
Grout and caulking
A great way to freshen up a kitchen or bathroom and prevent water damage, is to renew grout and caulking. As these products age they can get mouldy, discolour, deform, peel and crumble, this doesn't look great and will allow water and other substances to creep into crevices, cause damage and attract pests.
Carefully scrape damaged products out, clean the surfaces and apply new material according to the manufacturer's instructions.
The same applies for loose tiles. Remove the damaged grout and tile, clean and prepare the surfaces, glue the tile and re-grout.
Maintaining timber
Timber can be found around most homes and depending on where it is, will most likely need some sort of maintenance eventually.
Structures outside need the most care as they are exposed to the elements and can be more susceptible to pest damage. Be careful sanding and drilling treated timber, it can produce toxic sawdust. Scraps of this material should never be burned, again, because of the chemicals used to treat it.
Decks and outdoor furniture will generally need to be sanded (or prepared in some other way) and treated in some way at regular intervals. Decks usually require annual work.
The time between these jobs will depend on the materials used and the finish you're after. Some finishes and types of timber require less maintenance than others. Hardwood doesn't soak up products applied to them so they wear faster than the same product on a softwood.
Always check how the timber has been treated previously, you may be restricted in what you can apply over the top of existing products.
Always sand with the grain of the timber otherwise you will be putting gouges into it not, smoothing it out. Random orbital sanders are an exception to this rule, follow manufacturer's instructions.
Start with coarse sandpaper and work your way down to the finest one required to get the finish you want.
The type of timber and its current condition will determine what sort of sandpaper you start with.
Sanding blocks will help you sand evenly and make the job easier on the hands. Solid blocks are best for flat surfaces, spongy blocks allow sandpaper to be shaped around curved surfaces.
Sand evenly over surfaces, it's easy to get carried away in one spot and leave an uneven surface. Use long, light, even strokes for an even finish.
Throw away the sandpaper once it's clogged (and won't unclog) or worn smooth. Keep the surface fairly clean, loose grit will create scratches.
Be careful with carved or moulded finishes, don't sand down decorative details. Sandpaper can be folded and curved to get into some tricky corners, there are also tools on the market to help out with fiddly sanding jobs. Steel wool is recommended for some delicate jobs.
If you need to remove thick layers of paint, a chemical paint stripper may be an option. Be very careful using these chemicals and also be aware that the paint you're removing could contain lead and other harmful chemicals.
Certain timber finishes need to be approached with extreme caution, these include veneers, exotic grains, fine patinas and finishes like French polish. Don't sand away the bumps, bruising and colour in antique furniture or you will lose the character (and value) of the piece. Always consult an expert if in doubt.
Power tools can make jobs quick and easy. They also have the potential to cause a lot of damage if misused.
Sanding timber floors is a huge job and should never be attempted without some prior timber DIY experience. Damaging timber floors is not hard, fixing that damage can be very difficult.
Finishes for internal use include polyurethane, wax, oils and stains.
Safety equipment is essential, especially where you have dust and chemical fumes. Use the appropriate dust mask or respirator equipment as well as the other safety essentials like hearing and eye protection.
Tuesday, August 7, 2012
The Story by Mat Steinwede
The Life you live is a reflection of the story You have going on in your mind.
We have a story of all the different subjects we experience in our life, our marriage, our homes, our career, our kids, our finances, our health etc etc.
Have you ever stopped for a minute and thought about what your story is?
Sometimes you may have a story going on in your mind that is really not serving you, because someone has hurt you or something has happened to you and you keep telling the same story to yourself over and over again and keep re-creating the same events in your life over and over again on that particular subject.
Or on the other hand you might have an awesome story going on in another area of your life and you keep re-creating results that are outstanding.
Many people don’t realise that your story is the single most powerful thing that will help you create a life of excellence and abundance.
Your story creates emotions and emotions attract circumstances and events into your life to match that story.
The beauty of this is, if you don’t like what you are living you can change it in an instant by telling yourself a different story.
Start creating a new story today and then watch your world follow.
Don’t be in a rush for your world to change just focus on getting good at telling yourself a different story and over time you will start to notice things are changing.
Life is just a reflection of your most dominant thoughts (your story) and this story is 100% created by you.
If you are living a life of excellence and abundance you would already have a great story going on, a story of success and joy.
Keep going with that.
Remember every subject in your life has a story and whatever outcome you are looking for all starts with the story in your mind.
Isn’t that an amazing thought in itself.
Your life’s results are completely in your hands.
If you want a different result start telling yourself a different story and then your world must follow.
It is Law!
What’s your story?
We have a story of all the different subjects we experience in our life, our marriage, our homes, our career, our kids, our finances, our health etc etc.
Have you ever stopped for a minute and thought about what your story is?
Sometimes you may have a story going on in your mind that is really not serving you, because someone has hurt you or something has happened to you and you keep telling the same story to yourself over and over again and keep re-creating the same events in your life over and over again on that particular subject.
Or on the other hand you might have an awesome story going on in another area of your life and you keep re-creating results that are outstanding.
Many people don’t realise that your story is the single most powerful thing that will help you create a life of excellence and abundance.
Your story creates emotions and emotions attract circumstances and events into your life to match that story.
The beauty of this is, if you don’t like what you are living you can change it in an instant by telling yourself a different story.
Start creating a new story today and then watch your world follow.
Don’t be in a rush for your world to change just focus on getting good at telling yourself a different story and over time you will start to notice things are changing.
Life is just a reflection of your most dominant thoughts (your story) and this story is 100% created by you.
If you are living a life of excellence and abundance you would already have a great story going on, a story of success and joy.
Keep going with that.
Remember every subject in your life has a story and whatever outcome you are looking for all starts with the story in your mind.
Isn’t that an amazing thought in itself.
Your life’s results are completely in your hands.
If you want a different result start telling yourself a different story and then your world must follow.
It is Law!
What’s your story?
Friday, August 3, 2012
MISSING TWO FOOTERS?
In 1960, at age 14, I met a college basketball coach on the court and asked him for his best, niftiest pointer. He took the ball, walked under the basket, and shot an easy layup.
"See that shot?" he said gruffly. "Ninety-nine percent of all basketball games are won with that shot. Don't miss it." And he walked away. I felt cheated that day, but 20 years later, I realised it was the best business lesson I ever got.
Excerpt taken from Little Gold Book of YES! Attitude by Jeffrey Gitomer
"See that shot?" he said gruffly. "Ninety-nine percent of all basketball games are won with that shot. Don't miss it." And he walked away. I felt cheated that day, but 20 years later, I realised it was the best business lesson I ever got.
Concentrate on the
fundamentals. Ninety-nine
percent of all success is
achieved that way.
The science of serving and selling in business has nothing to do with nuclear physics or brain surgery.
It's about asking questions, helping others, and believing in yourself, your product, and your company. It's about establishing long-term relationships and having fun. It's all fundamentals.
You don't need to be a professional ballplayer. You just need to know how to shoot layups and not miss them.
- How many games (service and sales opportunities) are you losing because you have the attitude of a loser?
- How are you serving others in a friendly, positive way to create a winning atmosphere for your company, your customers, and especially YOU?
- How many two footers are you missing because you're not concentrating on the fundamentals of the game?
Excerpt taken from Little Gold Book of YES! Attitude by Jeffrey Gitomer
Tuesday, June 12, 2012
BUDGET CHANGES FOR FIRST HOME BUYERS
NSW is set to have the most generous first home buyer scheme in the country - provided you buy a new house or apartment.
The state government announced changes in the budget to more than double the first home grant to $15,000 for buyers of new property priced up to $650,000.
However, buyers of existing property are in for a nasty surprise. The $7000 first home owner grant - in operation since 2000 - will cease to exist.
This move is designed to motivate buyers to buy new rather than existing properties.
First home buyers of new houses and apartments will also continue to be exempt from stamp duty and it will now apply to properties worth $650,000, rather than the $600,000 previously.
The budget changes mean that, from October 1, first home buyers who purchase a new home priced at $550,000 can save up to $35,240, which is close to $20,000 more than the previous saving.
As expected, the government has now ended the stamp duty concessions for non-first home buyers of new properties.
But by way of compensation, it will offer a $5000 grant to purchasers other than first-timers - investors, upgraders and downsizers - for new properties priced up to $650,000.
The state government announced changes in the budget to more than double the first home grant to $15,000 for buyers of new property priced up to $650,000.
However, buyers of existing property are in for a nasty surprise. The $7000 first home owner grant - in operation since 2000 - will cease to exist.
First home buyers of new houses and apartments will also continue to be exempt from stamp duty and it will now apply to properties worth $650,000, rather than the $600,000 previously.
The budget changes mean that, from October 1, first home buyers who purchase a new home priced at $550,000 can save up to $35,240, which is close to $20,000 more than the previous saving.
As expected, the government has now ended the stamp duty concessions for non-first home buyers of new properties.
But by way of compensation, it will offer a $5000 grant to purchasers other than first-timers - investors, upgraders and downsizers - for new properties priced up to $650,000.
Tuesday, June 5, 2012
RESERVE BANK INTEREST RATE ANNOUNCEMENT
The Reserve Bank has cut interest rates today by 0.25 per cent.
The official interest rate is now 3.5 per cent.
The 25 basis point fall comes after a big 0.5 per cent cut last month that, as yet, has failed to make an impact.
The softness in the non-mining sectors of the economy has forced the Reserve Bank to move again today. Many people are hurting and have been hoping the Reserve Bank would make the decision it has.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
The cut may not be the last for the year. It has been predicted the Reserve Bank will cut rates by as much as 1 per cent this year, taking the official rate as low as 2.75 per cent.
The big question now is, just how much of today's rate cut will lenders pass on?
Last month the average cut delivered was 0.38 per cent, despite the Reserve Bank slashing rates by 0.5 per cent.
The official interest rate is now 3.5 per cent.
The 25 basis point fall comes after a big 0.5 per cent cut last month that, as yet, has failed to make an impact.
The softness in the non-mining sectors of the economy has forced the Reserve Bank to move again today. Many people are hurting and have been hoping the Reserve Bank would make the decision it has.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
The cut may not be the last for the year. It has been predicted the Reserve Bank will cut rates by as much as 1 per cent this year, taking the official rate as low as 2.75 per cent.
The big question now is, just how much of today's rate cut will lenders pass on?
Last month the average cut delivered was 0.38 per cent, despite the Reserve Bank slashing rates by 0.5 per cent.
Wednesday, May 23, 2012
HOW TO WARM YOUR HOME
Oh to live in Darwin at this time of the year! Temperatures in that city this week are expected to average 32 degrees, with overnight lows of 21.
For the rest of us, the pre-winter chill is certainly starting to bite. As we move into the colder months, here are 10 ways to warm up your home.
1. Prune those sun-suckers
2. Let the sun in
When the sun is shining, remember to open curtains and blinds during the day, especially on the northern side of your home, but also the east (in the morning) and the west (in the afternoon).
However, you might consider leaving south-facing blinds and curtains closed on days when it is colder outside than in as the sun won't hit those windows.
It's very common to see homes shut up all day long with the curtains drawn. But before you head off to work or out for the day, opening the blinds and curtains on windows that get the sun can mean coming home to a much warmer property.
3. Block the cold out
Overnight you want to stop the warm air from inside your home being lost through the glass of your windows. It's important to cover the windows to do this.
Either use thick curtains and a pelmet overhead to stop the air from getting to the window, or consider good-quality honeycomb (also known as cellular) blinds, which pull up almost out of sight during the day to let maximum sunlight in, but do a fantastic job of blocking the windows overnight, or on colder days when there is a lot of cloud cover.
The great thing about honeycomb blinds is you don't end up with the heavy look of thick curtains but still get the insulating effect. They do look a bit like they belong in an office and not a home though, and if that bothers you, you can layer them behind a very light sheer curtain to soften their impact. Or of course, for even more insulation, a heavier curtain.
4. Fan-tastic
If you have ceiling fans, now is the time to switch them over to winter mode so that they run backwards. Put them on their lowest speed and they will direct the warm air from across the ceilings where it sits high up, and down the walls.
If you get condensation on your windows overnight, you'll probably notice that leaving a fan on in winter mode during the day can help to dry the windows out faster.
5. Draughts be gone
Gaps around doors and windows can let in a lot of draughts. Block them up with an appropriate draught-sealer. Your local hardware store will have plenty of options.
Consider also a good old-fashioned door snake if you find it hard to seal the bottom of doors, which is often the case in older houses where steps may have worn, or doors are not quite square.
If you have particularly cold rooms in the home – the spare bedroom or laundry, for example, consider draught-sealing the door that separates that room or rooms from the rest of the home.
However, it is important to note that if you use unflued gas heating or an open fire, you will need to ensure you have adequate ventilation at home.
6. Monitor it
If you happen to be someone who is at home during the day, you'll have the opportunity to throw open the windows and let the warmth in on the days when it becomes hotter outside than in, which can often happen at this time of year.
It can be helpful to have a thermometer with an outdoor sensor set up in a prominent spot in the home to let you know when it is warmer outside than in. Hardware stores often stock them - I have one a bit like this.
It will also come in handy in summer when you've got the opposite problem and you want to know when it has cooled enough to open the windows in the evening.
7. Go passive
A few months ago we installed a solar heater, which draws the warm air from the roof cavity into the home.
I'm pleased to say it seems to working well at this time of year (when we hoped it would) helping to raise the home's temperature by a critical three-four degrees, meaning the heater has pretty much stayed off so far, even on cooler nights.
Because our home is well-insulated, draught-sealed and has honeycomb blinds on almost all windows, when it warms up during the day it manages to hold the temperature overnight.
8. They mightn't be pretty but...
Okay, I'll admit that old-style aluminium roller shutters are butt-ugly.
When we inherited two shutters on the '50s brick box we bought a year or so back, I was tempted to rip them off. But instead we gave them a paint job (a marginal improvement) and now find in winter, we wouldn't be without them.
When the shutter goes down about the same time as the sun it's like instant double-glazing, you can feel the difference because the shutter helps to provide an air pocket between our old single-pane glass windows and the cold night air.
They work so well I'm even tempted to put them on a few more windows.
9. Cook up a storm
It really is a time of year for baking and slow cooking. The house will definitely warm up, but will you be able to resist all that yummy food?
10. Control the thermostat
Running your heater at 18-21 degrees will keep you comfortable without toasting, and will also keep your winter heating bills down. Just one degree more in temperature can increase your heating costs by 15 per cent.
Wednesday, May 9, 2012
Reserve decision will boost rate of recovery
The Reserve Bank's decision this week to reduce official interest rates by 50 basis points is good news.
Falling rates and solid signs of an improving local economy provide the Sydney housing market with the prospect for increased buyer activity and further increases in median house prices this year.
Australian Property Monitors has recently reported that the Sydney median house price rose strongly by 1.4 per cent in the March quarter.
The city's suburban regions also recorded encouraging increases in median house prices during the quarter.
The only exception was the northern beaches, where prices were down marginally, by 0.5 per cent.
The top performer was the central coast, where median house prices rose by 5.7 per cent. The next best were Sydney's south, up 5 per cent, Canterbury-Bankstown, up 4.8 per cent, and the western suburbs, where median house prices increased by 4.3 per cent.
Despite the increases, price levels in some areas are still below those recorded a year ago.
The worst performer over the past year was the lower north shore, where median house prices were down by 6.6 per cent.
The city and east region fell by 5.3 per cent and the northern beaches was down 4.9 per cent compared with March 2011.
Several regions, however, have recorded increases in the median house price in the past year. The best was the upper north shore, which was up 1.9 per cent.
Sydney's west was up 1.8 per cent, while house prices in the south-west rose by 1.5 per cent over the year to March.
Falling rates and solid signs of an improving local economy provide the Sydney housing market with the prospect for increased buyer activity and further increases in median house prices this year.
Australian Property Monitors has recently reported that the Sydney median house price rose strongly by 1.4 per cent in the March quarter.
The only exception was the northern beaches, where prices were down marginally, by 0.5 per cent.
The top performer was the central coast, where median house prices rose by 5.7 per cent. The next best were Sydney's south, up 5 per cent, Canterbury-Bankstown, up 4.8 per cent, and the western suburbs, where median house prices increased by 4.3 per cent.
Despite the increases, price levels in some areas are still below those recorded a year ago.
The worst performer over the past year was the lower north shore, where median house prices were down by 6.6 per cent.
The city and east region fell by 5.3 per cent and the northern beaches was down 4.9 per cent compared with March 2011.
Several regions, however, have recorded increases in the median house price in the past year. The best was the upper north shore, which was up 1.9 per cent.
Sydney's west was up 1.8 per cent, while house prices in the south-west rose by 1.5 per cent over the year to March.
Tuesday, May 1, 2012
INTEREST RATE ANNOUNCEMENT
The Reserve Bank has cut interest rates by 0.5 per cent today.
The 50 basis point fall comes on the back of evidence the economy is struggling with weaker-than-expected inflation figures released late last month. The official interest rate is now 3.75 per cent.
It is good news for mortgage holders who were earlier this year hit with out-of-cycle rises by many lenders.
Each 0.50 per cent drop in interest rates slices about $120 off the monthly interest cost of an average Australian mortgage.
All eyes will be on the financial institutions to see if they follow suit. It is possible lenders could pass on a smaller proportion of the official drop to their own customers.
At least one bank will hold off announcing a decision for more than a week with the ANZ Bank set to release its move next Friday, the second Friday of the month.
If lenders do make cuts, it is a smart idea for borrowers to maintain their current repayment levels.
Many institutions don't automatically adjust repayments down in line with lower rates, and if you think yours might, you should speak with them and ask for your repayment amounts to be kept as they are.
"It is inevitable that rates will rise again in the future, so this is a golden opportunity to pay some extra money off your loan if you can afford to do so."
The 50 basis point fall comes on the back of evidence the economy is struggling with weaker-than-expected inflation figures released late last month. The official interest rate is now 3.75 per cent.
It is good news for mortgage holders who were earlier this year hit with out-of-cycle rises by many lenders.
Each 0.50 per cent drop in interest rates slices about $120 off the monthly interest cost of an average Australian mortgage.
All eyes will be on the financial institutions to see if they follow suit. It is possible lenders could pass on a smaller proportion of the official drop to their own customers.
At least one bank will hold off announcing a decision for more than a week with the ANZ Bank set to release its move next Friday, the second Friday of the month.
If lenders do make cuts, it is a smart idea for borrowers to maintain their current repayment levels.
Many institutions don't automatically adjust repayments down in line with lower rates, and if you think yours might, you should speak with them and ask for your repayment amounts to be kept as they are.
"It is inevitable that rates will rise again in the future, so this is a golden opportunity to pay some extra money off your loan if you can afford to do so."
Tuesday, March 6, 2012
The Reserve Bank has kept interest rates on hold today
The move was expected after the Reserve Bank governor, Glenn Stevens, recently indicated he is comfortable with lending rates at the moment.
Rates will remain at 4.25 per cent.
"We may well see further cuts this year but the Reserve Bank has decided that this month is not the time to deliver them. The move follows back-to-back rate cuts in November and December last year, and a decision to keep rates on hold in February.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
After many major lenders lifted their rates out of cycle last month, all eyes will be on the financial institutions to see if they plan to deliver a second round of raisings.
The ANZ Bank will announce its move this Friday, the second Friday of the month. In February, lenders waited for the ANZ Bank to announce its decision before following suit. "Time will only tell if the same pattern is to be repeated," says Boyd.
Rates will remain at 4.25 per cent.
"We may well see further cuts this year but the Reserve Bank has decided that this month is not the time to deliver them. The move follows back-to-back rate cuts in November and December last year, and a decision to keep rates on hold in February.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
After many major lenders lifted their rates out of cycle last month, all eyes will be on the financial institutions to see if they plan to deliver a second round of raisings.
The ANZ Bank will announce its move this Friday, the second Friday of the month. In February, lenders waited for the ANZ Bank to announce its decision before following suit. "Time will only tell if the same pattern is to be repeated," says Boyd.
Tuesday, February 7, 2012
INTEREST RATE ANNOUNCEMENT
In its first meeting of the year, the Reserve Bank has kept interest rates on hold today.
Many economists had bet the Reserve Bank would cut rates by 0.25 per cent due to worries about the economic situation in Europe. However, rates will remain at 4.25 per cent.
"Today's decision leaves the gate open for the Reserve Bank to cut rates should the situation in Europe sour," says Domain property expert Carolyn Boyd. The move follows back-to-back rate cuts in November and December last year.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says although rates have remained on hold today, mortgage holders might still be able to win themselves a rate cut by shopping around for a better deal from lenders. Some lenders are offering more than 0.9 per cent off their standard variable rate for borrowers who ask.
"Keep in mind what it might cost you to switch though," Boyd says. "While borrowers with new loans may no longer be liable for early exit fees (also called delayed establishment fees), people who took out their loan before July 1 last year could still be charged an exit fee by their lender. The ban on exit fees only applies to loans taken out since July 1, 2011. There are also other costs associated with refinancing such as government charges to discharge and register a mortgage."
However, securing a cheaper rate cut from another institution may mean you can recoup the amount you have to spend to refinance quite quickly, or you may be able to use the cheaper offer to negotiate a better deal with your existing lender.
Many economists had bet the Reserve Bank would cut rates by 0.25 per cent due to worries about the economic situation in Europe. However, rates will remain at 4.25 per cent.
"Today's decision leaves the gate open for the Reserve Bank to cut rates should the situation in Europe sour," says Domain property expert Carolyn Boyd. The move follows back-to-back rate cuts in November and December last year.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
Boyd says although rates have remained on hold today, mortgage holders might still be able to win themselves a rate cut by shopping around for a better deal from lenders. Some lenders are offering more than 0.9 per cent off their standard variable rate for borrowers who ask.
"Keep in mind what it might cost you to switch though," Boyd says. "While borrowers with new loans may no longer be liable for early exit fees (also called delayed establishment fees), people who took out their loan before July 1 last year could still be charged an exit fee by their lender. The ban on exit fees only applies to loans taken out since July 1, 2011. There are also other costs associated with refinancing such as government charges to discharge and register a mortgage."
However, securing a cheaper rate cut from another institution may mean you can recoup the amount you have to spend to refinance quite quickly, or you may be able to use the cheaper offer to negotiate a better deal with your existing lender.
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