Statement by Glenn Stevens, Governor: Monetary Policy Decision 4 June 2013

At its meeting today, the Board decided to leave the cash rate unchanged at 2.75 per cent.

Information becoming available since the previous meeting is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks but, overall, remain at high levels by historical standards. Inflation has generally moderated over recent months and monetary policy has been eased further in a number of countries.

Financial conditions internationally are very accommodative. Despite the recent rise in sovereign bond yields, funding conditions for sovereigns, well-rated corporates and most financial institutions remain very favourable.

In Australia, growth over the past year has been a bit below trend. The outlook published by the Bank last month is for a similar performance in the near term and recent data are consistent with this. The unemployment rate has edged higher over the past year and growth in labour costs has moderated. Inflation has been consistent with the medium-term target and is expected to remain so over the next one to two years.

The easing in monetary policy over the past 18 months has supported interest-sensitive areas of spending and has been reflected in portfolio shifts by savers and higher asset values. Further effects can be expected over time. The pace of borrowing has thus far remained relatively subdued, though recently there have been some signs of increased demand for finance by households. The exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half.

At today’s meeting the Board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target. It decided that the stance of monetary policy remained appropriate for the time being. The Board also judged that the inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand.

Mortgage Express welcomes Nikki Mence, who joins the company as Business Operations Manager for Australasia.

Nikki is an accomplished financial and lending professional, and brings a unique and specialised skillset to the company.

Most recently Nikki was the New Zealand General Manager for Finware, Australasia’s leading supplier of data software and web services to the mortgage advisory industry.

She has extensive experience designing and implementing work flow systems and processes, as well as expertise in developing CRM and web solution products.

Mortgage Express was one of her clients while at Finware, and Nikki was pleased when the opportunity came up to join the team.

Nikki has also worked as a mortgage adviser and ran her own income management business.

“I’ve been in the industry for over 10 years and have worked across a number of disciplines. I’m looking forward to supporting the group’s aspirations to become the largest mortgage advisory company in Australasia.”

Nikki’s role includes ensuring systems and processes comply with changing regulations, new adviser induction and ongoing training for existing Mortgage Express advisers.

Approachable and friendly, Nikki is excited about working with the team and is keen to start forming relationships with clients.

Mortgage Express General Manager Sarah Johnston says Nikki’s skills will be invaluable to the group.

“Nikki is a rare find. I am thrilled to have her on board and know that our team will benefit from her expertise.”

For additional comment contact:

Nikki Mence, Business Operations Manager

Mortgage Express

Ph: +64 21 776 949

For more information contact:

Andrea Svendsen, Communications Manager

Harcourts New Zealand

Ph: +64 27 523 7044

Top Referring Sales Consultant (Highest number of settled mortgage referrals)

No1: Helen Anderson, Harcourts Alliance Joondalup, Western Australia

No 2: Peter Burley, Harcourts Ballarat, Victoria

No 3: Christine Quarrie, Harcourts Pakenham, Victoria

Top Referring Office (Highest number of settled mortgage referrals)

No 1: Harcourts Ballarat, Victoria

No 2: Harcourts Launceston, Tasmania

No 3: Harcourts Gympie, Queensland

Top Mortgage Adviser (Total number of settled mortgage referrals)

Tracey Pye – Victoria

Top Mortgage Adviser (Highest number of settled Harcourts referrals)

Tracey Pye – Victoria

WELL DONE EVERYONE!

The term “dress for success” generally applies to the business world, especially when applying for a new job or trying for that big promotion. Of course you want to look your best. When putting your house on the market it’s also vital to dress it well for a successful sale. Just as in the business world, there’s a lot of competition in the real estate market.

There are several fix-up projects that will improve your chances of a profitable sale and get you big returns on a small investment. Most are do- it- yourself jobs that require little to no skill, while some may have you calling on family or friends to lend a hand and their expertise. Here are some of the most important jobs to get your home ready to sell.

Got Curb Appeal?

Curb appeal could prove to be one of the most important factors in selling your home. If potential buyers don’t like what they see from the street, you’ll never get them on your property much less through the front door. Your home should have a warm, inviting appearance. This means repairing damaged or uneven driveways, walks and steps, and making sure that all railings are secure.

The yard should be kept well groomed with shrubbery trimmed and all debris removed for a neat, clean look. You may want to update exterior fixtures such as lights, mailbox, and house numbers. The front door may be in need of an update as well by way of a fresh coat of paint. Don’t forget, adding some flowers to existing flower beds or setting a few potted plants in view is likely to encourage prospective buyers to see more.

The roof of your home is a major area of concern to anyone considering a home purchase, so be sure to examine it carefully to assure that it’s in good condition. Gutters need to be clean and in good repair. A final consideration for great curb appeal is to put a fresh coat of paint on trim and paneling. It’s amazing what a good washing with a pressure washer or a simple garden hose will do too.

Keeping the Interior Neutral

Moving inside the home, remember color preferences vary greatly and it’s amazing how room colour can actually affect a sale. You may want to paint throughout with neutral colors. This allows prospective home buyers to imagine their own colour schemes rather than have the sight of your blood red family room send them in search of another home.

Replace worn or dated flooring. This includes old carpeting and vinyl flooring. If your carpeting is fairly new, do some spot cleaning and shampoo it. If not, it’s time to throw it out. Old and warn carpeting detracts from all your other interior facelift jobs and makes everything look shabby. If the vinyl floors in your kitchen or bathroom are old, now’s the time to replace them. Often, depending on the type and condition of the existing floor, this can be a do-it-yourself job.

As you walk through your home to assess things in need of change or repair, consider updating lighting fixtures. Proper lighting sets the mood for any room while highlighting its best features. Really good task lighting in kitchens and bathrooms is a great selling point. You might also want to replace cabinet hardware and faucets that have seen better days.

Removing the Clutter

Go through your entire home and remove all personal items from view. Counter tops in kitchen and bathrooms as well as any other surfaces (end tables, coffee tables, buffets, tops of refrigerator, etc.) throughout your home should be free of clutter, personal photos, and knick-knacks. Remember, that which is near and dear to your heart may be a distraction and a ‘turn off’ to a potential buyer.

Finally, CLEAN is your goal. As people tour your property and home they will see that you’ve loved and cared for it well. Since it has been ‘dressed for success’ they will see that they too just might love to make your home their own.

Credit card numbers are in high demand. Criminal enterprises seek to fill this demand by stealing the credit card numbers of people. Judging by the amount of credit card numbers available for sale on the black market, the criminals have been quite successful.  Some people might be wondering how the thieves got a hold of their credit card number. Most people are careful with their credit cards and do not let anyone touch their credit cards. Unfortunately, there are many ways for criminals to steal your credit card number.

Hacking websites can yield credit card numbers

Many companies store the credit card numbers of their customers. Criminals love this as it gives them the opportunity to steal a large number at once. There have been cases where thieves managed to obtain millions of credit card numbers at the same time.

Companies are aware of this and spend a lot of time and money trying to prevent this from happening. However, criminals are constantly scanning company servers for any weaknesses. If any mistakes are made by IT personnel, the criminals stand ready to take full advantage.

In general, your credit card number is safe with a company. Most companies, especially the larger ones, have never had any problems with credit card theft. However, when it does happen, the consequences are severe.

Harvesting credit card numbers through the Internet

The Internet can be used to harvest credit card numbers in a variety of ways. One way is to setup a bogus website, where people can enter their credit card to purchase something, make a donation or something else.

Fake emails are also used to find victims. The email message is made to look like it is from a legitimate source to trick people into entering their credit card number. There are many other ways the Internet can be used to gather credit card numbers.

Criminals hire store employees to copy your credit card

Criminals are always recruiting people with direct access to credit cards. The reason is that they are in a position to make a copy of your credit card info and pass it off to the criminals in return for a fee. These people can include employees in a restaurant, convenience store, gas station and so on.

For example, when it is time to pay the bill in a restaurant, an unsuspecting person may hand their credit card to a restaurant employee. The employee leaves and quickly copies your info. It only takes a swipe and a few seconds. Afterward, the employee returns your credit card as if nothing happened.

Call Centres are a source of credit card information

Call Centres are another source of stolen credit card numbers. These call centres are used to provide a range of services such as taking customer orders, providing technical support, answer public inquiries and much more.

There have been instances where foreign call centre operators have asked the caller for their credit card number with the excuse that it is needed to provide the service. Those people that comply have their credit card number stolen.

Going through rubbish bins can turn up all sorts of things

Some people dispose of their financial statements together with the rest of their rubbish. Criminals know this and will take the time to go through people’s rubbish to see if they can find anything useful. It is absolutely possible for thieves to retrieve your credit card number from a garbage bag.

It isn’t just credit card numbers, but all other types of information. Tax file numbers, date of birth, telephone numbers, addresses and so on are all of interest to criminals. The information can be used to assume your identity, which can cause you all sorts of problems.

Don’t lose track of your credit card

Some people avoid trouble with their credit card by simply not owning a credit card. However, that is not an option for most people. Credit cards have become a part of life and it is important that people do what they can to help keep their credit card number secure.

Credit cards do come with a robust set of security measures to protect against credit card fraud. However, you should always be wary of giving out your credit card to anyone. That also applies to any other sensitive information.

Always think twice before you do anything. Ask yourself if there is a legitimate reason to give out your credit card information. You can’t totally prevent problems from occurring, but it should help towards minimising it.

Australian property buyers are getting the benefit of low interest rates, stable prices and rising rents. Australian residential property is an extremely diverse market as is expected in a country so large; prices vary greatly as there is some good rural land in Australia that is very cheap.

Prices in the urban centres have cooled off over the last few years from a rampant boom a decade before. In April 2013 softer capital city property values were recorded across every capital city apart from Adelaide where values increased by 2.8% and in Darwin where values rose by 0.2%. Across the major cities, Sydney values were down 0.4%, in Melbourne they were down 0.5%, in Brisbane values were down 0.7% and in Perth values recorded a 2.5% fall. Overall house values are up 2.7% over the past 12 months while unit values have risen by a slightly lower 2.5%. On a quarterly basis house values rose 1% and unit values 1.1%.

Standard variable home loan rates have fallen to a three year low of around 6.45%, while three-year fixed-mortgage rates are around 5.45%. A National Australia Bank housing market survey of real estate professionals, developers and investors found that in the quarter ended March 31 2013, respondents on average expected price growth of 3.6% in the next two years, compared with a forecast of 2.1% in the previous three months.

Rental prices continue to trend higher with most cities recording an increase in rents. Across the combined capital cities, house rents were up 1.4% over the three months ending April 2013 and unit rents were up 1.3%. Nesting or investing in a country so diverse there is opportunity a plenty in the Australian residential property market at a price range for every investor.

The property sector has once again missed out on budget love with little direct relief for home buyers, sellers and investors. However it could be a case of “no news is good news” as the ongoing suggestions that negative gearing benefits could be scrapped and capital gains tax increased have gained no further momentum.

RP Data’s senior research analyst Cameron Kusher doesn’t expect federal Budgets to prioritise buyer incentives again, “Any government will be very careful about reintroducing the First Home Owners Scheme again or boosting it unless there is a big economic shock” he said.  Mr Kusher also said that grants had artificially inflated house prices against a backdrop of rate cuts designed to bring the dollar into check and stimulate new home starts.

There was some love however from The Reserve Bank as the base interest rate was cut this month. Although this was a measure to stimulate the wider economy all parties in the property market will get a welcome boost at the prospect of lower mortgage payments. The 0.25% cut to 2.75% is a record low which followed three months of rates on hold with the last cut of 0.25% being in December 2012. Rates have now fallen by a full 2% since the beginning of the current easing cycle in November 2011. It’s interesting to note that the conditions for property are becoming favourable and it’s possible to have a low interest rate environment with orderly house price movements making it a good time for buyers to get busy.

The results of our End of Year Annual Awards (April 2012 – March 2013) for recognition of effort for high achievement have been announced – CONGRATULATIONS to the following:

QUEENSLAND

Top Sales Consultant (Highest number of settled mortgage referrals): Billy Mitchell – Harcourts Gympie

Top Office (Highest number of settled mortgage referrals): Harcourts Gympie

Top Mortgage Adviser (Total number of settled mortgages): Donna Baden

NEW SOUTH WALES

Top Sales Consultant (Highest number of settled mortgage referrals): Michael Garside – Dougmal Harcourts Dapto

Top Office (Highest number of settled mortgage referrals): Dougmal Harcourts Dapto

Top Mortgage Adviser (Total number of settled mortgages): Helen Smith

VICTORIA

Top Sales Consultant (Highest number of settled mortgage referrals): Peter Burley – Harcourts Ballarat

Top Office (Highest number of settled mortgage referrals): Harcourts Ballarat

Top Mortgage Adviser (Total number of settled mortgages): Tracey Pye

WESTERN AUSTRALIA

Top Sales Consultant (Highest number of settled mortgage referrals): Helen Anderson – Harcourts Alliance Joondalup

Top Office (Highest number of settled mortgage referrals): Harcourts Alliance Joondalup

TASMANIA

Top Sales Consultant (Highest number of settled mortgage referrals): Jenni Howlett – Harcourts Launceston

Top Office (Highest number of settled mortgage referrals): Harcourts Launceston

Top Mortgage Adviser (Total number of settled mortgages): Peter Van Est

SOUTH AUSTRALIA

Top Sales Consultant (Highest number of settled mortgage referrals): Stephen Venn – BH Colonel Light Gardens

Top Office (Highest number of settled mortgage referrals): BH Colonel Light Gardens

The Mortgage Express Android App is now available to download for FREE – yes FREE!!! Click on the link below to access it and let us know what you think, we’d love your feedback!

https://play.google.com/store/apps/details?id=com.mortgage.android.au&feature=search_result#?t=W251bGwsMSwxLDEsImNvbS5tb3J0Z2FnZS5hbmRyb2lkLmF1Il0

Do you make purchases with your credit card that you would never make if you had to pay cash? Do you find yourself picking and choosing which bills to pay first? Are your credit card bills taking money away from groceries, transportation, or other personal needs? If you answered yes to one or more questions, it’s time to evaluate your credit card debt and make some changes. Don’t allow your credit cards to take control of your life.

Budget Your Money

It’s been said a thousand times, and it’s true, writing out a budget is the first step in taking control of your credit cards and building financial security. When creating your budget, list all of your mandatory expenses first. These are your primary bills that must always be paid on time. Mandatory bills encompass your household expenses including rent or mortgage, rates, all utility bills, groceries, car payment, home, health, and car insurance, car maintenance, home maintenance, phone, health care, childcare, and loan payments. The household expense list will vary with each individual or family. Once you have listed all the mandatory expenses, subtract the total from your income after taxes. The balance, after bills are paid, also needs to be budgeted. Never spend money simply because it exists. The first item to be added to the budget is a savings account. If you are paying your bills on time and saving some money each payday, then you can safely apply for a credit card.

Leave The Credit Card At Home

Carrying your credit card with you makes it easy to buy more than you can afford. Use cash or a debit card to make regular purchases of groceries, clothing, household supplies and meet car expenses. Make a list of the items you need to purchase, and unless you have accidentally omitted a needed item, buy nothing additional. Making purchases with cash prevents you from over-spending. Never buy something because it is on sale. Many individuals and families have lost their savings and even their homes because of impulse buying on their credit cards.

Use Your Credit Card Wisely

Obtaining a credit card is a privilege and must not be abused. Except for an emergency purchase, never charge more than you can afford to pay each month. Interest can add up quickly, and some credit card companies have very high rates. Only use your credit card for a necessary purchase, such as replacing a kitchen appliance, or other unexpected emergency purpose. Avoid using your credit card to purchase items simply because you want them. Your monthly credit card payment for a major purchase must be made from your discretionary money. If you don’t have enough discretionary money to add the credit card payment into your budget, you cannot afford to make the purchase. Never use your savings to make credit card payments.

When you are in control of your credit card, it can be a wonderful asset to protect you and your family in the event of an unexpected major expense. When your credit card is in control of you, it can be a tool of destruction that destroys your security and ruins your credit. Take control of your spending and protect your credit.