Chisholm & Gamon On April’s 2013 RBA Monetary Report


Last week the Reserve Bank of Australia released their monetary policy report for April 2013. Interest rates are left unchanged, remaining at a competitively low 3 per cent. The RBA’s decision means that Australians will benefit from another month with a record low cash rate. Since the 0.25 per cent reduction in December 2012, the cash rate has remained unchanged. How might things alter in future? International economies and domestic spending will surely influence decisions throughout the remainder of 2013. C&G report.

As noted by Governor Glenn Stevens in previous months, the RBA’s most recent decision has been heavily influenced by the economic circumstances of China, the USA and Europe. Europe continues to operate in a recession-like environment without any promising signs for change in the near future. Italy, Greece, Spain and Cyprus are far from robust members of the EU currently. It’s not all bad news however – America has shown slow, consistent economic improvement. China is the envy of all nations, continuing to show signs of unprecedented growth. Since March, there haven’t been many ‘status changes’ to economies globally.


Internally, there have been some changes to the spending habits of Australians, including moderate growth in private consumption. A return to the vibrant consumer confidence and purchase of luxury goods experienced pre-GFC is not likely in the short term, however – with spending on-par with 2012’s records to date. The property market is steadily displaying signs of growth with rising dwelling prices and high rental yields. In relation to foreign trade, the export and mining industries continue to prosper.


While it seems like this economic news is similar to that reported in the past, RBA Governor Glenn Stevens notes that interest rate cuts in 2012 have had the desired effect. The outlook for Australia’s economy is generally positive with healthy employment rates, a strong dollar and expected further growth in the coming years.

Economic commentators are not expecting an interest rate change next month. With inflation close to the middle of the RBA’s target range, there is a chance rate cuts may be made later in the year – providing that there are no major incidences in exterior global economies.

C&G: Making the leap from Tenant to Home Owner


While January is almost at an end, there is no need to abandon those New Year resolutions early! If transferring from tenant to home owner was on your list of life changes for 2013, we’re here to keep you heading in the right direction! Today’s Chisholm and Gamon blog is a preparation guide for achieving home ownership. With our tips up your sleeve, you’re sure to be toasting your entry into the property market very soon!


Making short term sacrifice to achieve a long term goal is an approach worth applying to any life objective. Reining in the budget is not viewed as something enjoyable, particularly if one is used to spending without caution. The harsh truth is that the odds of winning the lottery are not in your favour, and when it comes to saving for a deposit some old fashion belt-tightening is more likely to help you achieve your dream of home ownership. If you are saving with a partner, ensure you commit to the challenge together and write down your budgets carefully – be accountable to one another. Don’t forget – there is also the option of moving in with your (agreeable) parents for a limited time to cut back on rent and bump-up your deposit. If that sounds like a remedy for mental breakdown, try other ways to cut back on expenditure – replace your weekly personal training session and Sunday catch-up drinks with a social game of soccer at the local park. You’ll have more money in your pocket, yet remain healthy (yes!) and connected to your friends whilst saving. The most important part of short-term sacrifice to achieve home ownership is that you set your budget and apply self-discipline.



A financial planner or mortgage broker are both equipped with the expertise to advise you how much you require for a deposit and how much you will be able to loan. They can provide you with realistic pathways to help you achieve your goal. Once you’re sure of the amount you’ll need to save (also known as the ‘light at the end of the tunnel), it will be easier to work towards saving. A financial planner may also suggest new investment ideas. For example, you might consider purchasing in a more affordable area, while continuing to rent in an area you like. This option allows you to break into the property market sooner – a benefit worth real money in the long-run. Contact Chisholm and Gamon for further information on brokers we recommend.



It is a good idea to build relationships with reputable estate agents based in the area you are seeking to purchase in. Let them know about the type of property you are looking for and your budget. They will be pleased to keep you on their database and call you when suitable properties become available. Real estate agents are also great advisors on market trends, allowing you to make the right choice for your budget and needs. They may also occasionally invite you to view properties before they ‘hit the market’ – offering you an exclusive opportunity to purchase prior to advertising to the wider buyer community.


There are a number of great opportunities to take advantage of when you’re a first home buyer. The government-sponsored first home owner grant is an obvious choice for those who qualify. A good financial advisor is sure to inform you of the best available incentives to match your situation. Good luck – we look forward to handing you the keys to your first home!

Market Rise: Port Phillip Leads the Way

The City of Port Phillip has many beautiful features – the glittering bay, wonderful outdoor areas for kids big and little to frolic, an architectural cross-section of homes from the 1920′s through to contemporary developments, festivals and trend-defining restaurants. In short, there’s lots to love! We’re pleased to hear the latest comments from the REIV  - that the property market in Port Phillip leads a rise in consumer housing confidence. Today’s brief Chisholm & Gamon blog reports on the good news!

If you drive around the City of Port Phillip, you’ll notice that despite media nay-saying about low market confidence and lack of investment – there’s numerous residential developments under construction. Across our three agency network, we continue to experience strong interest from parties wishing to invest in the bayside region. In fact, according to the REIV - Port Phillip is one of the only suburbs of Melbourne continuing to experience a growing population. In the last quarter the Port Phillip market has grown by 6.3% – a trend we can expect to continue in light of late 2011′s two interest rate drops. Will the RBA drop the national rate by another .25% in February? Industry pundits suggest yes. Should the big banks elect to pass this cut along in full to mortgagees, it will further hasten a return to market by first home owners – traditionally key parties who look to buy apartments and units south of the city. This will be positive for current home owners looking to sell their properties to up or downsize, with more willing buyers in the marketplace creating robust competition.

For Chisholm and Gamon, 2011 ended on a strong note with excellent results, keen demand and buyer competition exhibited at auctions. As new developments are constructed in our catchment area and migration to our neighbourhoods continue, we are confident that bayside suburbs will remain firm favourites among the investor and owner-occupier communities. Looking to add to your City of Port Phillip property portfolio? Our bet is to buy now, as the market is set to rise.

Make It a No Tan Jan this Summer!

Learn the facts, look after yourself and fight skin cancer this summer with No Tan Jan on Facebook and Twitter. Each year 1,700 die from skin cancer (melanoma) in Australia – the highest rate in the world. One in two Australians will be treated for melanoma, which can kill within a year of diagnosis. Prevention is key, so look for ‘ABCDE’: spots with irregular symmetry, Border, Colour, Diameter and Evolution. Today’s Chisholm and Gamon blog looks at this unique fundraiser, which focuses on keeping you safe this summer – so that you’re healthy for summers to come!

The Warwick Foundation supports cancer victims aged 18-40 amid unique issues: feeling ‘too young’ to have cancer; peers who don’t understand; intimacy and relationships; raising families with reduced stamina; insufficient health insurance; prematurely facing mortality.‘In My Shoes’ programs link patients and survivors through compassionate and holistic care. ‘Wellness Escapes’ provide rest for the diagnosed and loved ones, and ‘Get Spoilt’ allows members and carers to be pampered.

Solariums are no safer than sunbaking, increasing melanoma risk by 75% among under-30s. Each year, sunbeds cause 2,600 cancer diagnoses with UVA five times stronger than sunlight. Experts want compulsory training, restricted UV, usage limits or a complete ban. Tanning is skin cells fighting UV damage, which increases mutations that cause skin cancer. Fair skin and irregular exposure exhibit greater risk, and kids see more sun before age 20 than for the rest of their lives.

‘Fake It, Don’t Bake It!’ asks you to say goodbye to patchy orange skin with these tips. Fake tan reacts with dead skin cells, which can’t mutate like those affected by UV. It gives no protection though, so use sunscreen under make up and on exposed body parts. Add a hat and sunnies with UV protection. Avoid sun between 10am and 3pm and reapply sunscreen every two hours.

Throughout January, Bonnie Bella will donate 10% from every mobile spray tan to No Tan Jan. Aura Natural Skin Care will give 10% from all sunless tanning products, with a $5 discount! 10% from every loose mineral bronzer at Adorn Mineral Cosmetics will go to No Tan Jan, as will $1 per online sale of Tan-Off Sunless Tan Removal Mitts, and Birdie Hair & Beauty will donate 10% from every Tuscan Spray Tan.

Some celebrities don’t get it, but there’s advice from four who do. Margot Robbie: “My must have fake tan is SugarBaby Suntanned Sweeties Mousse.” Tom Gleeson: “Escape to a midday movie session to miss the hottest part of the day.” Natalie Hunter: “Clinique’s 45+ summer protection stick is in my pocket for use on nose and lips.” Brad Johnson: “It’s vital to look after my family’s skin and teach the slip, slop, slap message.”

Melbourne’s rental market eases

According to vacancy rates recently released by the Real Estate Institute of Victoria (REIV), the availability of rental homes in the Melbourne metropolitan area has improved.


In March the vacancy rate was at 1.7%, and had been firmly wedged below 2% since August 2005. Potential tenants have competed vigorously for rental properties over the last five years, particularly in inner city locations and regionalVictoria. Over the June quarter the vacancy rate finally rose to 2.2%. In the inner city the vacancy rate improved from 1.6% to 2.4% over the quarter. In the middle suburbs the improvement was from 1.8 to 2.1%, and in the outer suburbs the improvement was from 1.9% to 2.2%. Vacancy rates also improved slightly in regionalVictoria, from 1.3% in March to 1.5% in June, however, the trend of fewer vacant rental homes in regionalVictoria than in the metropolitan area, has continued.


REIV figures also show that Melbourne tenants residing in a three bedroom house are currently paying a median price of $340 per week. This represents a 3% increase on the same time last year. Two bedroom apartments are currently fetching a median of $350 per week, also around 3% more than last year.


Astute investors will still realise that the city’s housing market has performed very well in recent years. Melbourne continues to experience strong population growth from overseas. In fact the state’s population has significantly increased above the national average and it is expected to continue doing so over the coming years. This, along with the current undersupply of residential dwellings, ensures that pressure remains on residential investment property prices despite slightly more balanced rental market figures.

Tags: Melbourne, REIV, Victoria

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