Alan Stott

New Client Testimonial

Here's what Jonelle has to say about my services:

AUSTRALIA'S POPULATION CONTINUES IT'S RAPID GROWTH

 

Despite the world economic slowdown and a reduction in skilled migration, Australia’s population growth continues to surge ahead, creating unprecedented demand for Australian housing. Over the 12 months to March 2009 Australia’s estimated population has increased by just over 439,000 residents, fuelled by continuing increases in net overseas migration and a climbing rate of ‘natural increase’ (births outweighing deaths). In raw numbers, these recent growth figures are the highest on record. In percentage terms, the growth rate of 2.1% hasn’t been this high since the baby boom. Australia’s estimated residential population now sits at almost 21.8 million persons. Whilst the government has cut some skilled migration, other forms of migration are still powering ahead. The other primary driver of the strong net migration figure relates to the fact that far fewer residents are leaving Australia. The latest ABS data (July 2009) shows a 17.2% decline in the number of permanent residents departing for overseas over the last year. The last year has seen 278,239 new overseas migrants (accounting for just over 63% of population increases) and 160,822 more births than deaths (approximately 37% of population growth). Based on July migration figures, people born in India accounted for the largest proportion of new settlers to Australia (12.1%), followed by people born in China (11.8%), the UK (11.4%) and New Zealand (10.9%). On a state-by-state basis, Queensland recorded the greatest total increase in population over the last year, with a population gain of 112,666 persons. This result is slightly greater than the increase of 112,454 persons in New South Wales. If the growth rate is expressed as a percentage of the total population, Western Australia is the clear leader with the estimated residential population increasing by 3.1%, whilst Queensland comes in second with population growth of 2.6%. At the other end of the spectrum Tasmania has recorded the slowest rate of growth at just 1.0% followed by South Australia where the population increased by 1.2% over the year. New South Wales remains the most populous State in Australia, home to just over 7 million residents or 32.5% of the total population of the country. Combining the three largest states, New South Wales, Victoria and Queensland account for more than three quarters of the country’s population (77.4%). It has not just been the rate of population growth over the last year which has been so impressive, Australia’s population has been ramping up for some time. Over the last five years Australia’s population has increased by almost 1.7 million persons at a rate of 1.7% annually over the period. The increase in population creates additional demand for housing. The 2006 Census indicated that Australia’s average household size was 2.6 persons. Based on population growth alone and not considering other factors such as reducing household formation rates and demolitions, population growth over the last quarter of 109,765 persons would have created demand for around 42,217 new dwellings. Despite this extra demand during the quarter, just 31,566 dwellings commenced construction. The June quarter data shows a further reduction in commencements, highlighting the disconnect between housing supply and population growth. The cumulative gap between supply and demand has been estimated to be around 200,000 dwellings and growing. Such strong population growth should be viewed as a very positive outcome for Australia. A growing population creates more demand for our domestic products and services which in turn provides a natural stimulus to the economy. Importantly, there are a wide variety of challenges that accompany such a strong rate of population growth. We need to see housing construction run in parallel with demand and there needs to be a Government strategy that is aligned with providing the essential services and infrastructure required by a growing population base. Clearly these challenges are not being met: as a nation we have under built and housing is now critically under supplied. The flow on affect from this under supply will mean consistent upwards pressure on housing prices and rental rates which will lead to further issues associated with housing and rental affordability.

THIS ARTICLE WAS WRIITEN BY RP DATA...REAL PROPERTY KNOWLEDGE YOU CAN TRUST

WA MAKING A REAL ESTATE RECOVERY ACCORDING TO RP DATA!

By BN | Wednesday, 16 September 2009

Western Australian looks to be the next property hotspot, according to figures released by RP Data.

The research group's Property Market Activity Index revealed a 17% jump in industry activity by real estate agents since the beginning of June. The results far exceed finding from the same period last year by 31% - a clear indication that the area is making a recovery.

The jump in activity in WA is coming off a very low base, according to general manager David Williams.

"The Western Australia market has been in the doldrums for some time after recording an impressive level of growth during 2006 and 2007.  Over the year to June we have seen Perth sales volumes increase by almost 70 percent as the Perth market starts to become reinvigorated," Williams said.

The study measures the number of Comparative Market Analysis reports produced on individual properties around Australia by real estate professionals, which agents use to provide a price guide when listing a property.

Williams suggested that the real estate market will expand over the coming weeks as buyers take advantage of warmer weather to investigate properties

RBA LEAVES THE CASH RATE UNCHANGED

For the fourth consecutive month the RBA has left the headline cash rate at 3%.

In a statement following the announcement, RBA governer Glenn Stevens said the global economy was stabilising "after an earlier sharp contraction in demand".

"Downside risks to the global outlook have diminished, though they have not disappeared and most observers expect only modest growth overall," he added.

M C's senior corporate affairs manager, Kristy Sheppard said she hoped that the cash rate remaining steady for a fourth consecutive month did not lull Australians into a false sense of security.
 
“The cash rate will not stay at the current half century low forever, and lenders are moving interest rates regardless. We have been watching this happen over the past three or so months,” she said.

"Borrowers must be prepared now for a rise in their minimum mortgage repayment level. It is not a matter of if, it’s a matter of when. The market is currently pricing in a 100 percentage point cash rate rise by July 2010," she added.

The move was widely tipped by analysts and economists, though most are now predicting that the next move will be upwards.

The last time the RBA cut the cash rate was in April, when it fell by 25bps from 3.25% to 3%.

JP Morgan predicted a move upwards would not be until the middle of next year while Commsec chief economist Craig James said the economy was improving across a wide range of sectors, but it was too early to put up interest rates, the ABC reported.

While the RBA left rates on hold, today saw Westpac push up fixed rates due to increased funding costs.

Westpac's one-year fixed home loan rate went up by 10bps to 5.59%, its three-year fixed rate increased by 40bps to 6.99% while its five-year rate increased by 45bps to 7.64%.

BANKS & MORTGAGE INSURERS MAKE IT HARDER TO BORROW!

YES....IT'S TRUE! 

Despite the grate success of the First Home Owners Grant Boost, the Banks and Mortgage Insurers have changed their lending policies and have reduced the maximum we can borrow to 90%, and now require all borrowers to have a minimum of 5% genuine savings. The borrower must evidence the prescence of these funds in their account for at least the last three months.

I still have access to very limited 95% lend products, but the borrower must fit strict criteria.

I also have a very useful 98% lend product, where the lender does not charge the borrower lenders mortgage insurance. Again, strict criteria exist in terms of debt ratio's, maximum joint incomes of $120,000pa and a maximum purchase price of $412,000.

For FREE ADVICE call me to find out how we can help you with your new borrowing requirements.

FIRST HOMEOWNERS GRANT BOOST TO CONTINUE!

The industry is breathing sighs of relief after the government revealed it will be extending the boost to the First Home Owners Grant (FHOG).

Speaking at the official announcement of the federal budget last night, Treasurer Wayne Swan said that since it was introduced, the boost had "supported employment and helped 59,000 Australians buy their first home."

He went on to say that in light of the continuing global uncertainty, and the success of the initiative, the government would extend the boost for a further six months, with a reduction coming into place for the final three months..

Going forward first homebuyers will be eligible to receive the full boost of $14,000 for established and $21,000 for new housing until 30 September. After this date, $14,000 will be offered for new homes and $10,500 for established homes for the three months to 31 December.

The move has been applauded by the industry.

This will give First Home Buyers an opportunity to save a 5% deposit over the next 3 - 6 months so as to meet lenders' requirements that borrowers now have a 10% deposit of which 5% must be genuine savings where the loan involves lenders mortgage insurance.

To discuss how you can plan to take advantage of this extension, phone me now on 0400 649 700 or  email alan@beatthebanks.com.au.

INTEREST RATES LOWERED AGAIN BY 1% BY RESERVE BANK!

 

MEDIA RELEASE      No: 2009-01      Date: 3 February 2009      Embargo: For Immediate Release

STATEMENT BY GLENN STEVENS, GOVERNOR
MONETARY POLICY

At its meeting today, the Board decided to reduce the cash rate by a further 100 basis points, to 3.25 per cent, effective 4 February 2009.

There was a significant deterioration in world economic conditions late in 2008. The effects on household and business confidence of the financial turmoil following Lehman’s collapse, and continuing strains on major financial institutions, saw a significant downturn in demand around the world. As a result, the major advanced economies contracted sharply in the December quarter, as did a number of emerging market economies. The Chinese economy, though still growing, has slowed markedly. Global inflation, having reached high rates during the middle of 2008, is now declining.

Measures to stabilise financial systems have contributed to an improvement in the functioning of credit markets over the past couple of months. This, in conjunction with expansionary macroeconomic policy measures being taken around the world, should assist in promoting global recovery over time. But the near-term outlook for the global economy is the weakest for many years.

Economic conditions in Australia have also been affected, though less than in other advanced economies. Australia’s financial system remains in a strong condition and large interest rate reductions over recent months have been passed through in substantial measure to end borrowers. Nonetheless, the combination of last year’s financial turmoil, a severe global downturn and substantial falls in commodity prices has had a significant dampening effect on confidence, and therefore on prospects for growth in demand. Inflation has begun to moderate and, given recent developments, it is likely to continue to decline.

In these circumstances, the Board judged that a further sizable reduction in the cash rate was appropriate, to give further support to demand. In making its decision, the Board took into account the package of measures announced by the Government earlier today. The combination of expansionary monetary and fiscal policies now in place will help to cushion the Australian economy from the contractionary forces coming from abroad.

IF YOU WANT TO KNOW HOW THIS EFFECTS YOUR MORTGAGE REPAYMENTS, OR IF YOU WANT TO KNOW IF THIS REDUCTION NOW MEANS YOU THINK YOU CAN AFFORD AN INVESTMENT PROPERTY, THEN CALL ME TO FIND OUT!

REFERER OF THE YEAR FOR 2008.....MICHAEL PATERSON! THANK YOU MICHAEL!

I would like to introduce and acknowledge MICHAEL PATERSON.

Michael is both a freind and a client, and is my most prolific business refererr.

As well as being a Solicitor, Michael Paterson is also a software developer and is actively involved in both the legal and computer industries. He has dual qualification in both disciplines: B.Sc. (Computer Science) LL.B. (Hons.) A.N.U. (1982-1986).

With his knowledge and practical experience in the computer industry, Michael Paterson has developed a niche practice area in computer, technology and intellectual property law. In addition, he regularly presents seminars on computer-related legal issues to various industry and professional bodies and gives guest lectures at Curtin University and Edith Cowan University.

Michael has been referring his clients and his staff members to me ever since I arranged his own personal and investment finance some time ago.

Thanks to Michael, I have quite a number of new clients, and I too have been able to refer my clients to him on a number of occasions when I have known about issues facing my clients and freinds.

Michael has advised and sorted out my clients on issues such as property leases, wills, enduring power of attourneys, property disputes and in establishing the owning entities of businesses and establishing family and unit trusts.

Thank you for the business you refer to me Michael. I appreciate your business and the confidence shown to me in referring your clients, freinds and staff member to me!

......and if you need a good solicitor or good legal advice, please give me a call and I will gladly put you in touch with Michael. 

MESSAGE FROM MAX....YOU ONLY GET TO KEEP WHAT YOU GIVE AWAY!

  IT'S A UNIVERSAL LAW: YOU HAVE TO GIVE BEFORE YOU GET.

You must plant your seeds before you reap the harvest.

The more you sow, the more you will reap.

In giving to others, you will find yourself blessed.

The law works to give you back more than you have sown. Those that obtain have little. Those who scatter have much. The givers harvest is always full. Nature does not give to those who will not spend.

This is the time of year to show appreciation to those you love.

 

Happy holidays!

CONGRATULATIONS BRENDAN!......WELCOME TO THE RAT RACE!

This TRUE STORY is unusual, in that Brendan is in the middle of Zambia handling logistics for his mining and resource employer. Brendan organised that his accountant (Domenic Papaluka of the Fabulous Stirling Accountants & Business Consultants) have Power Of Attourney over his affairs in his abscence.

Immediately before christmas, we were able to advise Brendan that his loan application was both approved and UNCONDITIONAL.

Naturally, Brendan was very happy to know that he is to be the owner of his FIRST HOME, and we also arranged for the BOOSTED FIRST HOME OWNERS GRANT OF $14,000!

Here's the breif paragraph he managed to get to us after the camps communications were destroyed by a lightning strike......

"Hehehe... Yup, finally got there eh... Dom can you just pass on my regards and appreciation to Alan despite my hissy-fit last week. Unfortunately our comms system got whacked by lightning on Sunday...so I'm a bit shy for email services just now.

Will get back to all soon and Merry Xmas to all.

... dem rats don't scare me...;-)

Brendan."

We can arrange finance wherever you are in the world!

 

 

IT'S 2009!........HAPPY NEW YEAR!

  I wanted to take the opportunity to wish you all....

HAPPY NEW YEAR.....AND MAY 2009 BE A HAPPY, HEALTH & PROSPEROUS YEAR FOR YOU, YOUR FAMILY & FREINDS!!!!

If the start of the new year means a review of your life and financial goals, then why not ask me to help you analyse your current position and look at options you may not have even thought about. If this is you, please call me on 08 9240 1990 to organise a confidential and free of charge meeting.