Freshwater Financial Services

No change from RBA but Banks increase rates!

2012-02-15T10:19:00.000+11:00

Are you surprised? The RBA seems quietly confident about policies in place in Europe and consumer sentiment here in OZ is on the up again. Personally, we think things are tracking quite positively and we don't get too caught up in the doomsayers.

A cynic might think that the banks are relieved there was no reduction in interest rates, after all, they would have been under pressure to reduce them quick smart. So what do they do, increase instead suggesting their funding costs are higher! How does CBA reconcile a $3.6 Billion half year profit with higher funding costs? That needs some explaining!

It's a good time to get a mortgage broker to take a look at your loans - make sure you're getting the best you can. It's tougher at the moment to borrow money, you need to be prepared to do quite a bit of groundwork. But that's not to say that it isn't competitive.

Make hay while the sun shines we say.

Inspiration....

2011-02-01T15:44:00.001+11:00

Welcome back!

Belated Happy New Years also - if you're like us you've been slowly getting back to normality, making plans and no doubt resolutions for the new year.

We read a great blog recently from a colleague of ours, Paul Dunn of Belief1st, with the above title. For us, the article was a great reality check and probably one of the more pertinent we've read in a while - particularly this quote.....

'The definition of insanity, “doing the same thing over and over, expecting a different result”'!

Too true! Read more of Belief1st blogs.

So, have a look and see what you can take out of it, particularly in relation to your financial goals. This is one area where you can clearly articulate your goals and put in place a succinct plan and timeline to get there. We have numerous tools and pertinent bits of advice to help you in this area. So, as Paul Dunn says, make a plan and just START.

Have a great week and enjoy the return to normality.

To fix or not to fix in 2011?

2010-12-27T22:50:00.001+11:00

Using your 'downtime' to review a few fundamentals for the New Year? No doubt you're giving thought to the 'fix or not to fix' question.

With the talk of interest rates undoubtedly on the rise, here are a few points to put in the mixer:

* Possibility of rates on the rise of up to 1% over the next 12 months - we think that a rate rise is likely, but there have been some interesting signs just over the last month that may impact on this.

* The housing market has slowed somewhat very recently and there's a perception that it may very well have hit a peak - for the short term anyway.

* Business confidence is still a little subdued although depending on what business you are in and where your clients are this effect will be varied.

So - what do we think? Yes, there will definitely be some rate rises but by how much remains to be seen. Remember also, that if fixed rates sit at traditionally around 1 % higher than a variable rate, there still quite a catch up that's must occur before you start to see some 'savings' - that's a decent amount of time to try and put the equivalent into a variable mortgage.

But, if managing cash flow in either your business or at home is a priority then it's always a good option to help with this.

Every individual and every circumstance is different - we don't have a glass ball, just good analysis and dialogue with you to figure out what's the best option for you.

Enjoy your week of downtime.

Treasury reforms?????? What do you think.......

2010-12-15T22:20:00.000+11:00

Were you waiting with baited breath as to see what the Treasurers' reforms would bring? What do you think - will they increase competition in the industry and bring about the so called 'fifth pillar'? Or was it simply, as quoted in the Sydney Morning Herald on the 14th of December a series of 'feather duster' reforms. Was it that good (!).

The proposed waiving of mortgage exit fees is another thing and hopefully will increase the amount of interest in other possibilities for the consumer. But, you do have to question longer term 'costs' of implementing this - so stay tuned and before you think this is a great option - have a look at the longer term implications of a switch.

But the biggest question is still what will happen with the economy next year. Australia overall is looking positive with unemployment still very low - with the flip side being inflation the price we pay for this environment. But retail is still sluggish - so where are the clues? We can't ignore the implications of overseas, particularly the US and Europe - first Greece, then Ireland - Spain or Portugal next. And of course, our number one obsession - property is up and down, rather than a tale of two cities at the moment it's literally a tale of two days.

Interested to know your comments - what's your feeling and how is your business?

Enjoy your week.

Worrying about too much Christmas spending?

2010-12-07T14:43:00.000+11:00

There was an excellent article in Sunday's Herald about some frugality tips for the new year! Great advice when most of us are probably already worrying about the effect of both over spending and over-indulging over the Christmas Period.

Nicole Pedersen-McKinnon offers some fundamental advice on how to NOT get caught in the cross-fire of an interest rate rise. The first point is obviously about ensuring you get the best deal on your home loan. Simple but true!
Our advice? Use the time over to re-examine your mortgage, utilities providers, credit cards, expenses - all the stuff you've been putting off throughout the year and get to it.

At Freshwater Financial Services, we have excellent relationships with a number of lenders and we offer a complimentary mortgage review at any time. So give us a call in the new year and let's get to.