Reserve tipped to bump up rates

Homeowners face finding another $50 a month to pay the mortgage, with the Reserve Bank tipped to lift official interest rates again today as it battles to dampen house prices and keep inflation pressures at bay.

A quarter percentage point rise this afternoon would mean official rates would have climbed 1.25 percentage points since October, adding more than $240 to the monthly repayments on a $300,000 mortgage.

It would be the biggest run of increases in a 12-month period since the Reserve took the official cash rate from 5 per cent to 6.25 per cent between November 1999 and August 2000.

But the decision could be a close call, with signs of softness in the retail and building sectors lifting expectations the Reserve may wait at least another month before moving in the week before Treasurer Wayne Swan hands down the Federal Budget.

At least mortgage holders may be saved from a “super-sized” lift to their repayments, with the NAB yesterday saying it would not increase its rates more than any move in the official cash rate. Its recent policy of matching rate rises had led to more customers.

That prompted Mr Swan to challenge other major banks to follow NAB’s lead.

TD Securities senior strategist Annette Beacher expects the Reserve board to hold rates today.

But Macquarie Bank rate strategist Rory Robertson said the chance of a rate rise was about 80 per cent.

“Interest rates here remain unusually low, our jobs market is strengthening, China and bulk-commodity prices are booming, so, too, local home prices, and the world’s biggest economy increasingly is getting back on its feet,” he said.

A new survey from Dun and Bradstreet of business executives out today shows sales, growth, employment and capital investment expectations all rising. 

Source  :  www.thewest.com.au

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Closure of the Capital Investment Scheme on 31 October 2009

From 31 October 2009, the South Australian Government Financing Authority (SAFA) has announced it will not accept any further applications from General Skilled Migration (GSM) applicants who wish to lodge a capital investment, as it will close the scheme.

Since the announcement of the reopening of the capital investment scheme by SAFA on 29 January 2009, the department has contacted all applicants whose cases had been assessed and who indicated they intended to lodge a capital investment.

Any applicants who have indicated on their application form that they intend to lodge a capital investment, but have not yet done so, are advised to finalise their capital investment before the scheme is closed.

Applicants who did not indicate on their application form that they intended to lodge a capital investment, but now wish to do so because they will be relying on the five bonus points to meet the Point Test, should also contact the department and finalise their capital investment before the scheme is closed.

This is the final opportunity for all pre 1 September 2007 GSM applicants to lodge a capital investment. As there will be no further capacity for applicants to make a capital investment to gain the bonus five (5) points, the department will not provide applicants any additional time to make a capital investment once the scheme offered by SAFA closes. Please note that this also applies to those applicants who have appealed to the Migration Review Tribunal (MRT) and those applicants seeking judicial review.

Applicants who still intend to make a capital investment are strongly urged to do so before 31 October 2009.

Please note that only SAFA provides an approved designated security that enables an applicant for a pre-1 September 2007 GSM visa to be awarded bonus points for making a capital investment.

For more information  :  http://www.immi.gov.au/skilled/general-skilled-migration/capital-investment-scheme-faqs.htm

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