The market can’t just rely on interest rates

RE/MAX Profile MV Real Estate principal Mel Vaisey does not believe that more interest rates are the answer to stimulating buyer activity in the real estate market.

“Currently rates are very competitive amongst banks and your lender will usually negotiate the variable rate that suits your circumstances,” he said.

Speaking to The Adviser, State Custodian Mortgage Company director Heidi Armstrong agrees.

She says that borrowers have changed the way they think about finance, with many taking a very cautious approach to buying and selling property.

Her comments come just days after the Westpac Melbourne Institute Index found consumer confidence had fallen to its lowest level since August with consumer sentiment falling by 8.3 per cent in December from 103.4 in November to 94.7 in December.

Mel believes the banks need to free up the money they are retaining to protect themselves and their shareholders, to help alleviate some of the problem, as most banks can rely on various government guarantees and bailouts so risk is minimised!

The state of the world economy has not yet settled and has more to go through yet, although Europe is showing small signs of being a little more stable unlike the USA, which it seems is a law unto itself with many families, businesses and individuals going to the wall with little regard from the big end of town or government.

With 90% of the wealth controlled by less than 10% of the population it is creating more wealth for those who really do not need any more at the behest of those simply trying to find a way to survive.

Then here we are in Australia, the lucky country, that’s why everybody is heading here!

We are a generous nation and give so much to those who come to our shores with little or nothing, but we need to look at those who have lived, loved and spent their life as good Aussies.

Yes we are so lucky and we give everything away to people simply because we believe they are on hard times, but we need to look out the back door – there are those who are struggling and, like in America, the list is getting longer.

What we really need now is Governments, at all levels, with direction and a plan, not jumping all over the place.

We need people in power who think of the next generation and not just the next election.

“Queensland has two elections coming up in 2012 – let’s make it a good year – think before you vote!”