Alpha Advantage in Mcmahons Point | Mortgage brokers

Alpha Advantage

Locality: Mcmahons Point

Phone: +61 2 9929 4661

Address: 5 Webb St 2060 Mcmahons Point, NSW, Australia

Website: http://www.alphaadvantage.com.au

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24.01.2022 Of Interest - March 2016 Good morning. The Donald Trump phenomenon will have enormous economic, social and political consequences should the New York billionaire be successful in his bid for the US Presidency. To determine the possibility of that outcome, it is insightful to defer to those astute judges of competitions - the bookmakers. Trump is heavily favoured to win the Republican nomination, with every $1 invested returning only $1.30 should he be the successful nomin...ee at the party's July convention. His chances of actually becoming the 45th President of the United States are assessed by the bookies as being remote, with every $1 invested on that outcome returning $4. Hilary Clinton is the overwhelming favourite to relocate to the White House, her odds being $1.40 to win the Presidential election in November 2016. Bookmarkers are not to be ignored as they tend to live in waterfront mansions. Waterfront mansions dominated the Sydney residential property media in March, with the Fairfax family’s vast harbour-front estate, Elaine, set to be reintroduced to the market as Elaine Gardens following approval for it to be carved up into four separate residences. The asking price is $75 million to $80 million and the expectation is that an overseas buyer will prevail as the redevelopment approval permits foreign purchasers. And so to interest rates as at 31 March, 2016 - The Variable Rate Applicable to Most New Home Loans 4.65% PA No change Best Available Discounted Standard Variable Rate 4.08% PA No change Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 4.19% PA No change Best 3 Year Fixed 4.07% PA No change Best 5 year Fixed 4.49% PA No change These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

24.01.2022 Of Interest - October 2016 Good morning. A final opportunity to review the likely outcome of the US Presidential election as assessed by the most astute of observers, the bookmakers. A successful result for Hillary Clinton will return $1.28 for every dollar invested, a win for Donald Trump will return $3.80. The odds reflect a view that Donald Trump has no hope. American financial market watchers expct the US share market to be unaffected if Clinton were elected, but predi...ct a 10% decline in the overall value of US shares should Trump become president. A similar impact on Australian equities could be expected in the event of a win for the Republican candidate. A credible indication that surging residential property prices in both Sydney and Melbourne have stabilised will be when valuations of completed apartments are lower than the original price of the 'off the plan' purchase. This has yet eventuate in either city. And so to interest rates as at 31 October, 2016 - The Variable Rate Applicable to Most New Home Loans 4.10% PA No change Best Available Discounted Standard Variable Rate 3.74% PA No change Best 1 Year Fixed 3.89% PA No change Best 2 Year Fixed 3.74% PA No change Best 3 Year Fixed 3.59% PA .10% PA Best 5 year Fixed 3.84% PA .01% PA These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

22.01.2022 Of Interest - August 2016 Good morning. There are 3 kinds of economists - those that can count and those who can't. Hence the diverse views of analysts as to the future direction of the economy and interest rates, as well as the likelihood of an impending residential housing bubble burst. ... Recent frenetic activity in the Sydney property market, with auction clearance rates above 85%, is a reflection of very limited housing stock available to prospective purchasers. Lenders have not responded to lower interest rates by making borrowing easier. Most major banks have tightened their lending criteria, increasing their serviceability 'stress' levels for mortgage finance applicants. The same income will allow you to borrow less money than 6 months ago so easy money is not fuelling housing demand. If it were, real estate prices outside of Sydney and Melbourne would not be at their current subdued levels. It is difficult to envisage a property market crash when supply remains conspicuously constrained. And so to interest rates as at 31 August, 2016 - The Variable Rate Applicable to Most New Home Loans 4.10% PA .15% PA Best Available Discounted Standard Variable Rate 3.67% PA .11% PA Best 1 Year Fixed 3.89% PA No change Best 2 Year Fixed 3.74% PA No change Best 3 Year Fixed 3.69% PA No change Best 5 year Fixed 3.99% PA .20% PA These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

19.01.2022 Good morning. They do not ring the bell at the top of a cycle nor do they ring it at the bottom is a favourite saying of market observers. The decision by the US Federal Reserve this month to increase its key federal funds rate to 0.25 percent could be interpreted as a very loud tolling of a bell that signals the end of an extended period of historically low interest rates. Positive recent economic indicators in Australia, in particular employment growth, have eased pressur...e on the Reserve Bank Board to further reduce the domestic cash rate. There is no Board meeting in January so expect an uneventful summer break. Domain, self-described as 'one of Australia’s leading multi-platform property industry destinations', has predicted growth of 4% in 2016 for Sydney's residential real estate market. Suburbs with projected growth rates greater than 5% are - Tregear West Minto South West Chester Hill West Canterbury Bankstown South West Engadine South South Tempe Inner West Cromer Northern Beaches Chatswood Upper North Shore Lane Cove Lower North Woollahra East Maroubra City East Domain's forecast will be reviewed in 12 months time. And so to interest rates as at 31 December, 2015 - The Variable Rate Applicable to Most New Home Loans 4.65% PA No change Best Available Discounted Standard Variable Rate 4.14% PA No change Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 4.19% PA No change Best 3 Year Fixed 4.24% PA .11% PA Best 5 Year Fixed 4.59% PA .10% PA These rates are applicable for owner occupiers only. Investors can expect, on average, a loading of approximately .25% PA higher for both variable and fixed.

19.01.2022 The world's second-largest gem quality diamond was discovered in a Botswana mine in November, according to the Lucara Diamond Corporation, the mine's owner. In terms of size, the 1,111 carat diamond is second only to the 3,106 carat Cullinen gem found in South Africa in 1905. The type-IIa stone, just smaller than a tennis ball, is up for sale and any potential buyer will need to bid more than $US60 million to secure ownership. It is expected that when cut, the diamond will... yield one 'significant' polished stone and an undetermined number of offcut pieces as large as 20 to 30 carats each. As an aside, the Cullinen diamond was cut into pieces which ended up being set into the Crown Jewels of England. The relevance of the diamond's discovery to world economic order and in particular interest rates? None, but it is interesting. The Sydney residential property market continues to cool and it is homes outside of the 10 kilometre CBD ring that appear to be the most affected. Demand for inner city properties remains relatively strong which observers attribute to the challenges of the daily commute and the desire for a sensible work/life balance. Those factors are likely to provide sufficient market momentum well into the new year, mitigating the impact of increased housing supply and the possibility of further restrictions on investor lending. And so to interest rates as at 30 November, 2015 - The Variable Rate Applicable to Most New Home Loans 4.65% PA .15% PA Best Available Discounted Standard Variable Rate 4.14% PA .15% PA Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 4.19% PA .05% PA Best 3 Year Fixed 4.13% PA No change Best 5 year Fixed 4.48% PA No change These rates are applicable for owner occupiers only. Investor rates are approximately .25% PA higher for both variable and fixed.

16.01.2022 Of Interest - February 2016 (#2) Good afternoon. And the winner is........those who predicted that the Reserve Bank board would leave the cash rate unchanged at today's RBA meeting. The Big Short, the recently released film that squarely lays the blame for the GFC on the unchecked avarice of the US retail and investment banking systems exploiting abysmally poor lending standards invariably raises the question - could a similar situation happen here. Highly unlikely. Austra...lian financial governance imposes far stricter criteria on all major lenders in the assessment of home loan applications. Borrowers must prove that they have the ability to service the home loan amount applied for and the serviceability stress testing process sets the interest rate bar at least 50% above the current borrowing rate. Also, the risk of any loan amount above 80% of the value of a residential home is passed on by the banks to mortgage insurers, limiting a lender's exposure should it all end in tears. A perfect storm of rising unemployment and a collapse in house prices of 20% plus will create serious problems for our banking system however the likelihood of such a scenario occurring when residential property demand still exceeds supply is minimal. Investors have voted with their feet in response to tougher government restrictions imposed on investment lending and have moved to the real estate market sidelines. Owner occupiers now account for more than two thirds of all residential property purchased. And so to interest rates as at 1 March, 2016 - The Variable Rate Applicable to Most New Home Loans 4.65% PA No change Best Available Discounted Standard Variable Rate 4.08% PA .06% PA Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 4.19% PA No change Best 3 Year Fixed 4.07% PA .17% PA Best 5 year Fixed 4.49% PA .10% PA These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

11.01.2022 Of Interest - October 2015 The Australian share market serves as a daily reminder that economic activity is very much about confidence and expectation. Trepidation appears to dominate the mindsets of both consumers and business as the mining boom winds down and income growth remains static. Australia's small increase in Gross Domestic Product (GDP) recorded in the June quarter has been attributed to population growth only. Fragile confidence is likely to ensure that intere...st rates remain untouched for some time yet and it is possible that we could mirror the USA experience, where rates have not moved from their close to zero base for 8 years. Paradoxically, the current volatility should ensure some medium term stability. FOMO (fear of missing out) is no longer the prime motivator of the Sydney residential real estate market, as reflected by the spring selling season. Auction clearance rates are returning to levels considered normal, around 70%, and investor demand is reported to have eased. Lenders' recent changes to investment loans, primarily making them more expensive, are having their intended impact of easing housing demand. National Australia Bank recently announced that it would lend no more than 80% of the value of properties in certain Sydney postcodes that NAB consider to be overpriced. One of the more notable inclusions on their postcode list is 2067 - Chatswood. And so to interest rates as at 30 September, 2015 - The Variable Rate Applicable to Most New Home Loans 4.50% PA Best Available Standard Variable Rate 3.99% PA Best 1 Year Fixed 4.29% PA Best 2 Year Fixed 4.24% PA Best 3 Year Fixed 4.13% PA Best 5 year Fixed 4.48% PA These rates are applicable for owner occupiers only. Investment loan interest rates, particularly fixed rates, continue to change on an almost daily basis.

10.01.2022 Of Interest - May 2016 Good morning. The completion of 231,000 home units within Australia over the next 2 years has number of industry observers predicting Armageddon for the residential property market. Some lenders have responded to the impending supply surge by reducing the percentage of the purchase price that they are willing to finance, with inner city postcodes being identified as high risk. Therefore finance is still available, but with foreign purchasers now exc...luded from the borrowing process and maximum loan amounts of 70% of the purchase price for apartments in certain suburbs, demand is expected to moderate. The favoured outcome is that home values will flatten over the long term, rather than fall off a cliff. A Trump Watch update. With Donald Trump now the presumptive Republican nominee for the US Presidential election, his prospects of winning have gone from improbable ($4 for every $1 invested) to unlikely ($2.90) . Hillary Clinton has drifted from unbackable favourite ($1.40) to should win ($1.60). For those with a passion for Early Modern architecture, the 1930's iconic Elizabeth Bay mansion 'Boomerang' is back on the market. Interested buyers will need at least $60 million and should contact the current owner, Lindsay Fox. And so to interest rates as at 31 May, 2016 - The Variable Rate Applicable to Most New Home Loans 4.40% PA .25% PA Best Available Discounted Standard Variable Rate 3.88% PA .20% PA Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 3.75% PA .44% PA Best 3 Year Fixed 3.98% PA No change Best 5 year Fixed 4.49% PA No change These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

10.01.2022 Of Interest - July 2016 Good morning. The decision of the British to exit the European Union had an impact on global markets similar to an arm being removed from a bucket of water. Initially some ripples then an almost immediate return to the status quo. The major Brexit consequences remain unknown and will take a number of years to emerge. ... A noteworthy July event was Apple's announcement that it had sold it's one billionth iPhone, 9 years after the first model was released. Like the Brexit, quantifying the smartphone's long-term social and economic effects is an elusive exercise. The significant downward movement in most fixed term interest rates this month reflects the expectation of both a further reduction in the cash, or variable, rate and below average future economic growth in Australia. In an attempt to moderate an over-heated market, the New Zealand government has recently announced a policy that requires purchasers of residential properties in certain cities to have a minimum 40% deposit. Locally, apartment prices within 5 kilometres of the Sydney CBD are showing determined resilience, withstanding government and lenders' attempts to restrict demand by lowering lending ratios and the accessibility of investment loans. Position, position and position. And so to interest rates as at 29 July, 2016 - The Variable Rate Applicable to Most New Home Loans 4.25% PA .15% PA Best Available Discounted Standard Variable Rate 3.78% PA .10% PA Best 1 Year Fixed 3.89% PA .40% PA Best 2 Year Fixed 3.74% PA .01% PA Best 3 Year Fixed 3.69% PA .29% PA Best 5 year Fixed 4.19% PA .50% PA These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

09.01.2022 Of Interest - September 2016 Good morning. The leadership of Australia's Reserve Bank have publicly admitted that they have done as much as they can with interest rates to stimulate the domestic economy and they have nothing else in their armoury to assist with the transition to post-mining boom prosperity. Their advice to the federal government is to borrow significantly at historically low interest rates and invest heavily in infrastructure. The argument is that if you bo...rrow at 2% for a return of 5%, then why not. The political expediency of increased public spending should ensure that the RBA's advice falls on deaf ears. There was a small tick up in bond interest rates in September, both locally and internationally. Bond rates basically determine fixed interest rates so the market may be sending a subtle signal that this particular interest rate cycle has bottomed. The frothiest global residential property market is Vancouver, Canada, where home prices have risen on average 31% in the past 12 months. A weak Canadian dollar, and strong Chinese demand, also resulting in 10,000 vacant apartments, have propelled the market to a level that has forced the Canadian government's hand. Foreign buyers are now taxed an additional 15% of the purchase price and all vacant residential properties are subject to an annual levy of 2% of their assessed value. The success of these measures in calming the market and increasing the supply of affordable housing will be closely watched by authorities elsewhere. There are 161 rainy days a year in Vancouver so it's attraction as a place to live remains a mystery. And so to interest rates as at 29 September, 2016 - The Variable Rate Applicable to Most New Home Loans 4.10% PA No change Best Available Discounted Standard Variable Rate 3.74% PA .07% PA Best 1 Year Fixed 3.89% PA No change Best 2 Year Fixed 3.74% PA No change Best 3 Year Fixed 3.69% PA No change Best 5 year Fixed 3.85% PA .14% PA These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

09.01.2022 Of Interest - February 2016 Good morning. A later than usual monthly missive, which provides the opportunity to report on the Reserve Bank's first interest rate decision of the year. Unsurprisingly, the status quo is maintained and the cash rate remains at 2% PA. The major global economies are seeking to revive their domestic situations by driving down their respective currencies to stimulate exports. The Japanese and European central banks have attempted to do this by goin...g negative on interest rates. If you deposit money in a Japanese or European bank, you effectively will be asked to pay a small fee for the privilege of having the bank mind your money. An unattractive scenario for foreign capital but a blunt method for making locally produced goods and services cheaper for the rest of the world to buy. Therefore greater business activity and increased economic growth. It is highly unlikely that a similar situation will occur in Australia as the end of the mining boom has propelled our dollar down to an acceptable level. Tourism and education are the big winners locally. Rental returns for Australian residential property experienced their slowest growth rate for twenty years in the December quarter of 2015. Sydney rents for apartments fell in that quarter for the first time since 2012 and the vacancy rate is now 2.5%. It would appear that housing supply is now catching up with demand, particularly for units, which suggests a possible easing of property prices over the next 12 months. And so to interest rates as at 2 February, 2015 - The Variable Rate Applicable to Most New Home Loans 4.65% PA No change Best Available Discounted Standard Variable Rate 4.14% PA No change Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 4.19% PA No change Best 3 Year Fixed 4.24% PA No change Best 5 year Fixed 4.59% PA No change These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606

08.01.2022 Of Interest - June 2016 Good morning. "May you live in interesting times" is an English expression purported to be a translation of a traditional Chinese curse. Despite being so common in English as to be known as "the Chinese curse", the saying is apocryphal*, and no actual Chinese source has ever been identified. ... What is of undoubted interest is the outcome of the Brexit referendum in the United Kingdom tomorrow and the result of the federal election on July 2. The economic consequences of both polls are elusive, the positives and negatives advocated by both sides of the argument unprovable until well after both events. Expect economic commentators to use 'jittery' as their favoured assessment of financial markets for the balance of 2016. The NSW government announced this month that all foreign purchasers of residential real estate in this state will pay twice as much property transfer stamp duty as an Australian buyer. As an example, a local will pay $26,000 to the state government in stamp duty for a $750,000 home purchase, a non-national will pay $52,000. Increased transaction costs for one group of home buyers will assist in softening demand and help moderate a real estate market perceived to be overly bouyant. Property developers planning new projects are undoubtedly experiencing jittery first hand. And so to interest rates as at 22 June, 2016 - The Variable Rate Applicable to Most New Home Loans 4.40% PA No change Best Available Discounted Standard Variable Rate 3.88% PA No change Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 3.75% PA No change Best 3 Year Fixed 3.98% PA No change Best 5 year Fixed 4.49% PA No change These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). 1. *apocryphal - a story or statement of doubtful authenticity, although widely circulated as being true Regards, Jon Bailey M 0409 536 606

01.01.2022 Of Interest - April 2016 Good morning. An Australian company physically counts the number of tower cranes on the major cities' skylines and reports its findings via the 'crane index'. Currently there are 288 cranes operating within the greater Sydney region, the largest number recorded since the inception of the 'crane index' back in the late nineties. 249 of those cranes are involved in the construction of residential property, which simplistically would suggest that hou...sing supply is set to increase in the near to medium term. The vexed question of foreign ownership of Australian residential real estate is being subtly address by the federal government via the prudential authority overseeing banks, APRA. All major banks have recently revised lending policies for foreign nationals in response to APRA pressure, with Westpac, the most significant lender to overseas buyers, announcing this week that they would no longer lend to non-residents purchasing Australian residential property. Increased supply and diminishing demand has the inevitable impact of a softening in prices, an economic maxim recently validated by Australia iron ore producers. And so to interest rates as at 29 April, 2016 - The Variable Rate Applicable to Most New Home Loans 4.65% PA No change Best Available Discounted Standard Variable Rate 4.08% PA No change Best 1 Year Fixed 4.29% PA No change Best 2 Year Fixed 4.19% PA No change Best 3 Year Fixed 3.98% PA .09% PA Best 5 year Fixed 4.49% PA No change These rates are applicable for owner occupiers only. Interest rates for investment loans are from .1% PA to .3% PA higher, dependent on lender, loan amount and loan type (i.e. variable of fixed). Regards, Jon Bailey M 0409 536 606