Good Morning and Happy Monday, 20 January 2020
To all of my Chinese friends and colleagues Gung hei fat choy! 😊
Saturday see’s us welcome the year of the Rat. In the Chinese zodiac, Rat is the beginning of the cycle and represents wealth and surplus. May that be true of all of us this year!
The Banks have certainly come out in force this last week. The majors have certainly taken up the flag for all of those affected by the fires with repayment holidays, no strings cash offers and contributions to assist with rebuilds. They may well be able to redeem themselves a little in the eyes of the public. If you are or know someone affected by the fires, make sure they know that most banks are offering something to assist. If they haven’t already get them to contact their bank asap.
During the week I was speaking with a man I respect and admire greatly. He is very astute in business and he rang a bell that worried me about the housing market, especially around insurance. Anyone who lives rurally already knows the extortionate money that insurance companies charge.
His concern was that now that fires have shown just how aggressive they can be, burning areas that rarely see a flame along with insurance companies reticence to usually pay. How will this affect us all long term?
This fire season will see insurance companies pay out millions, as well as an increase in premiums for many affected. Could this mean that some people can no longer choose to live a rural lifestyle simply because the premiums were too high? Will we see insurance companies simply refuse to insure in some areas? How will this then affect rural and regional house prices? This is very much a wait and see piece I think will play out over the next few months and years.
I read a few articles this week around the rates on car loans and how they have been dropping in recent months. This was attributed to ‘Subdued consumer spending and business investment’ according to the Australian Broker Magazine.
My friends in the car industry have been saying for quite some time that things are tough. This is fantastic news to consumers because it means that rates are some of the most competitive we have seen in a long time. It also means that getting a good deal on a vehicle is a little easier.
I have access to some great lenders who are keen to do business as well as access to our internal car buying service. This means that we can help without you needing to do much heavy lifting at all.
I had a great rate hit my computer on home loan this past week too again from Auswide bank.
3 year fixed at 2.97% for under 90% Loan to Value Ratio loans, including construction loans AND with 100% Offset! This would make it one of the most flexible 3 year fixed rates in the market right now.
Let me know if you need anything I am always here to help.
JC
Scenarios quoted above are suggestions and constitute general advice only.
Justin
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