Queensland low bucks the Australian home loan trend

THE average new mortgage in Australia has hit an all-time high of $367,000 according to mortgage broker Australian Finance Group.

But Queenslanders have been more conservative than the rest of the country, with the average new mortgage in Queensland sitting at $325,000.

The average home loan in New South Wales is now $433,000; in Western Australia it is $391,000 and $386,000 in the Northern Territory.

Australians have been increasingly taking on bigger mortgages, with the average new home loan 6.4 per cent larger than it was in May 2009.

Queensland bucked this trend, however, with new mortgages taken out in November $10,000 smaller than the previous month and close to the state’s January low of $323,000.

Home loans in both Victoria and New South Wales grew since May – up 12.1 per cent and 10.7 per cent respectively.

The news comes after the Reserve Bank of Australia announced on Tuesday that it was lifting the official cash rate for the third successive time.

The latest 0.25 per cent rise, when passed on by lenders, will cost home-owners with a $367,000 mortgage on a standard variable rate an extra $56 a month, while those slugged with a 0.45 per cent rate hike face an increase of $102 per month.

First-home buyers accounted for just 13.7 per cent of all new mortgages in November, down from their peak of 28.1 per cent in March.

Investors have been steadily returning to the property market over the past four months and represent a third of all new mortgages in November.

Of those who took out a new mortgage in November, only 2.1 per cent opted for a fixed-rate, down from 3 per cent the previous month.

Total numbers of new mortgages were lower than previous months.

Mark Hewitt of Australian Financial Group said: “October and November are seasonally strong months in the calendar, but we’ve seen two straight months of decline.

“Larger average mortgages and greater activity by investors are usually signs of a confident market but confidence is still fragile.

“We believe the RBA hiked rates too quickly and too soon.”

Source  :  www.thenews.com.au

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Australia doing well on jobs – Rudd

AUSTRALIA is still doing better than other major economies despite a jump in jobless figures, Prime Minister Kevin Rudd says. 

The unemployment rate has risen to 5.7 per cent, after the total number of people in work fell by 1700, official May jobs data showed today.

 “Today we have seen an increase in unemployment to 5.7 per cent, returning to where it was in March this year, although employment remained fairly steady falling by 1700,” he told delegates at an Australian Industry Group lunch in Sydney.

He said the unemployment figures were indicative of how the financial crisis was affecting Australia.

“The global recession is continuing to have a direct impact on the Australian economy and Australian jobs,” Mr Rudd said.

“No one likes to see unemployment rise because of the global recession … (but) Australia’s unemployment rate remains lower than all other major advanced economies except Japan.”

He said the figures would have been far worse had it not been for the government’s stimulus packages.

“`Without our nation building plans, over 200,000 more Australians would be out of work,” he said.

Source www.news.com.au

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WA’s Whale Sharks

In the waters off  WA’s North West Cape between the months of March and July 2009 there has been a rather unusual number of whale sharks  seen in the area,  these gentle giants can grow between 12 to 18 metres in size. 

This season has been especially good for the whale shark tours operating out of Exmouth and Coral Bay.                       

Ocean Eco Adventures can offer one of the best day tours for whale shark encounters with its own spotter plane.

You can enjoy an encounter with a whale shark snorkelling.  The sharks can be playful with a strong  personalitiy and clear intelligence, they can interact with the swimmers.

The sharks are definitely the stars of the show on these tours and all the crew do offer a high standard of service.  

 

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Australia stocks close at seven-month high

The Australian share market closed at its highest level in nearly seven months as better-than-expected local and overseas economic data heartened investors and boosted resources stocks.

At the 1615 AEST close, the benchmark SP/ASX200 index had lifted 60.9 points, or 1.56 per cent, to 3955.3, while the broader All Ordinaries index advanced 61.7 points, or 1.59 per cent, to 3949.6 points.

The last time the local market had closed at those levels was in mid-November 2008.

The local bourse rose as a narrowing current account deficit and improving trade position raised expectations that the Australian economy had managed to avoid a contraction in the March quarter.

Building approvals rose for the third consecutive month as low interest rates and grants from the federal government enticed home buyers.

Resources stocks have been lifted by data released by China on Monday showing that China’s manufacturing activity had expanded in May for the third consecutive month.

In the US overnight, better-than-expected readings on manufacturing, consumer spending and construction spending boosted Wall Street.

The Reserve Bank of Australia, which kept interest rates unchanged on Tuesday, also said there was evidence the global

economy was stabilising and the turnaround was clearest in China.                                                                                                                            

City Index markets strategist Alex Douglas said the positive data releases over the last few days were driving the market.

‘If we go back to yesterday, there was positive data from China.

‘That was backed up with some manufacturing data in the States overnight which was slightly firmer than anticipated,’ Mr Douglas said.

Locally, the building approvals figures were also positive.

‘So little bits of evidence like that of growth emerging – that’s helping to support the markets,’ Mr Douglas said.

In the resources sector, global miner BHP Billiton gained 96 cents to $36.70.

Rio Tinto jumped $2.67 to $69.00 after the company announced it had settled terms of iron ore contracts with many Asian customers.

Oil and gas producer Woodside Petroleum rose 88 cents to $44.90 as it said it planned to retain at least 50 per cent equity in the second and third stages of its Pluto liquefied natural gas (LNG) development at Karratha in Western Australia.

Santos firmed five cents to $14.90.

Among the major banks, Commonwealth Bank strengthened 17 cents to $36.33, Westpac surrendered 18 cents to $18.76, ANZ gave away 21 cents to $15.98, and National Australia Bank gained 28 cents to $22.80.

Investment bank Macquarie Group was up 91 cents at $36.30 as it said it was not aware of any reason or information not already announced that could have prompted a lift in its share price since late last week.

On Wall Street overnight, the Dow Jones Industrial Average index rose 221.11, or 2.6 per cent, to 8,721.44.

In the gold sector, Lihir slipped one cent to $3.30, Newmont lost 24 cents to $6.00, and Newcrest picked up 15 cents to $33.89.

The price of gold in Sydney at 1628 AEST was $US973.85 per fine ounce, down $US10.25 on Monday’s close of $US984.10.

Telco Telstra was off two cents at $3.07, and Optus-owner Singapore Telecommunications shed six cents to $2.50.

Retailer Woolworths ascended 60 cents to $26.00, and Wesfarmers, which owns Coles, was $1.09 heavier at $23.37.

In the media sector, News Corp was 25 cents richer at $14.68, and its non-voting stock improved 20 cents to $12.75.

Consolidated Media lifted three cents to $2.38, and Fairfax gained six cents to $1.26.

Among other stocks, automotive brakes supplier Pacifica Group was steady at 13.5 cents after it said the bankruptcy of car-making giant General Motors Corp in the United States was likely to hurt Pacifica’s earnings in 2009.

The top-traded stock by volume was property developer GPT group, with 74.74 million shares worth $36.4 million changing hands.

GPT was 1.5 cents lower at 48 cents.

Preliminary national turnover was 2.43 billion shares worth $5.85 billion, with 657 stocks up, 412 down and 324 unchanged.

Source www.bigpondnews.com

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Verbeek sways Perth-born Williams to commit to Australia

SOCCEROOS coach Pim Verbeek looks to have secured the services of promising Perth-born Middlesborough defender Rhys Williams.

The youngster turned down Wales to pledge his international future to Australia.
The 20-year-old, who has a Welsh grandfather, has played 10 times for the Wales under-21 side but is yet to kick a ball for the senior line-up despite being called into the squad several times.

Williams had recently threatened to commit to Wales after being overlooked for the Socceroos but Verbeek, who is in Europe keeping tabs on Australia’s overseas-based players, has convinced the versatile defender to pursue his dream of playing for Australia.

Williams’ fate now lies with FIFA’s transfer committee but if he gets the rubber stamp he could be eligible to be selected for Australia’s World Cup qualifier in Qatar on June 6.

“Rhys has informed us that he wants now to play for Australia,” Wales spokesman Ceri Stennett said of Williams, who can play in central defence or at right back.

“The wheels are now in motion, and a decision will be made by FIFA’s transfer committee.

“But it looks like a fait accompli now.”

Williams, who left Australia at 16 to become a trainee at Middlesborough, made a name for himself this season on loan at promotion-chasing Championship club Burnley.

He impressed in 17 appearances with the club before being forced to return to Middlesborough before the promotion playoffs after failing to have his loan deal extended.

Burnley will face Reading on Wednesday morning (AEST) for a place in the promotion playoff final against Sheffield United.

Williams was not in Middlesbrough’s squad for Tuesday’s 3-1 loss to Newcastle, which consigned them to almost certain relegation, but he could feature in their final two games of the season.

His displays for the Middlesbrough reserves prior to joining Burnley earned him a contract extension with the club until June 2011 and also attracted the attention of Welsh under 21s coach Brian Flynn.

Williams first forced himself into the senior Wales set-up for last September’s qualifier against Azerbaijan but was yet to make his senior debut which, under FIFA regulations, would have meant he could not play for Australia.

His manager Gary Williams said in March the player saw his future with Wales because he had not had contact from anyone else, but hinted he was still interested in playing for Australia.

Wales said they would not be hurried into giving him a cap just to ensure he he was tied to them and, with his 21st birthday looming, Verbeek has now convinced Williams he has a future with the Socceroos.

www.news.com.au

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Australian share market opens higher

THE share market has opened marginally stronger the morning after the federal budget was handed down, and following a mixed lead from Wall Street.
At 10.15am (AEST), the benchmark S&P/ASX200 was up 12.1 points, or 0.31 per cent, at 3889.3, while the broader All Ordinaries gained 8.7 points, or 0.23 per cent, to 3872.3.

The four major banks were mostly higher at the open.

ANZ gained 4cents to $16.01, NAB was up 14 cents at $22.00 and Westpac was up 10 cents at $20.48.

The Commonwealth Bank, which reported cash earnings for the March quarter of about $1.15 billion, generating a cash return on equity of over 15 per cent, was down 20 cents at $36.40.

Resources weren’t as lucky, opening lower in morning trade.

Mining giant BHP was down five cents at $34.26, while rival Rio Tinto lost 4.41 per cent to $65.46.

Wall Street wobbled to a mixed finish on Tuesday as investors paused to assess gains from a long rally and mulled the new efforts to raise capital by banks and other firms.

The markets also digested better-than-expected data on the US trade deficit and reassuring comments from Federal Reserve chairman, Ben Bernanke, about the health of the banking system.

The Dow Jones Industrial Average was up 50.34 points, or 0.60 per cent, to settle at 8,469.11.
The tech-dominated Nasdaq dropped 15.32 points, or 0.88 per cent, to 1715.92 while the broad-market Standard & Poor’s 500 index lost 0.89 point, or 0.1 per cent, to settle at 908.35.

On the Sydney Futures Exchange, the June share price index contract was trading 17 points higher at 3885 on volume of 4900 contracts.
www.news.com.au

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What crisis? Tourists still flocking to Australia

Tourists are still flocking to Australia .  The number of overseas visitors to Australia is continuing to rise, despite the economic downturn.

Australian Bureau of Statistics figures show the number of short-term arrivals rose by 0.9 per cent in March, after similar rises in January and February.

Tourists from Malaysia accounted for the biggest increase, while the sharpest drops were in the Japanese and Korean tourist markets.

www.abc.net.au

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