Predictions are strong for continued interest rate rises next year, but the good news is that many economists believe the cash rate will remain well below 2008 levels.


The Australian's quarterly economic survey of 20 economists shows that most expect the Reserve Bank of Australia (RBA) to make at least two more hikes before June 2011, which would take interest rates to 5.25 per cent.

AMP economist Shane Oliver believes the concern that the cash rate will end up back to where it was in 2008 is unlikely provided inflation remains within the RBA target level.

The Australian's survey shows the median prediction for underlying inflation, was 2.7 per cent for the year to next December and 3 per cent by June next year. Inflation is expected to maintain an important role in the RBA's interest rate decisions, with the bank's mission to keep inflation in a target band of two to three per cent on average over the medium term.

BIS Shrapnel economist Jason Anderson believes interest rates will remain reasonable by historical standards, and will not substantially dampen demand for housing.

"Over the next six months investor demand is expected to rise further, which will support market turnover. With prices currently flattening, we expect demand from first home buyers will gradually recover in 2011," Mr Anderson said.

Your home is going on the market and you want to ensure it sells for the best possible price. How do you go about it?


The obvious answer is to make sure it looks good, but this is not the only selling strategy that counts. Take a look at our top six tips for attracting a sale.

First impressions last
Buyers often judge properties within 10 seconds of looking at the photographs, so ensure the marketing photographs of your home do it justice. You're better off having a few good quality photos that will attract buyers to an inspection, rather than masses of pixellated images of every room in the house.

Watch your advertising dollar
You don't need to spend a fortune marketing your property through pricey brochures or colourful advertisements, but you do need to ensure your property is exposed in mediums where your real estate agent knows the buyers are. If your agent services the area your property is located in, they should have a good knowledge of where their buyers come from.

Look for negotiation skills
When choosing an agent, look for a good negotiator. The negotiation skill of the agent has to be better than that of the buyer if you want to secure a good price for your property. Take the time to interview agents and be ready with a list of questions to ask that will help identify the skilled negotiators from the unskilled.

Be realistic with price
If your price is not reflective of the current market, you run the risk of not selling the property and wasting the money you have spent on the marketing/advertising campaign. Research or ask your agent to talk you through the comparative market sales in your area and set a price that is realistic and takes into account supply and demand. By not pricing yourself out of the market you are more likely to generate interest and an offer that you can work with until you are happy.

Clean & de-clutter
Make your property look comfortable and tidy without having too many personal things on display. Choose what you can put in storage or give-away that will help you de-clutter the feel of your home.

Repair within reason
There's no doubt that a well-presented property works in your favour, so be sure to do what you can to spruce it up without over-spending. Minor repairs and maintenance like fixing cracked glass and broken lights, cleaning windows and steaming carpets will add value to the property, but be wary of large investments in last-minute renovations that you may never recoup your money on.

Your car gets serviced at the mechanics, your teeth checked at the dentist, but when is the last time you booked your home loan in for a health check?


A regular home loan health check ensures you're still getting the best deal and the maximum benefit out of your biggest investment. As your personal circumstances change over time, it's important to make sure your home loan meets your needs and evolves with your lifestyle.

Here's what a health check might uncover about your loan. How to:

• save on interest and pay off your loan sooner by changing the frequency of your repayments
• achieve a lower interest rate
• negotiate better terms with your current lender
• reduce your loan balance and build your equity by using an offset account or paying income directly into your home loan.
• unlock the equity in your home to use for investment or renovation
• reduce debt by consolidating it into your home loan
• access product innovations that were not available when you first took out your loan
• transfer your loan to another lender.

How does it work?
Mortgage health checks are free of charge and involve minimal time on your behalf. Simply contact us and we will undertake a comprehensive analysis of your current loan by comparing it across a range of mortgage products available from banks and lenders. We'll then share with you any potential ways we have uncovered for you to save money and time, and assist you with putting these into action.

A health check doesn't mean you will have to refinance your loan; it can be as simple as restructuring with the same lender. Banks and lenders are constantly enhancing and fine-tuning their product range, which means there is often a cheaper or more efficient product provided by the same lender.

In situations where refinancing is the better option, we can help minimise the effort, time and expense that is often involved in moving from one lender to another. As part of this process we will help you weigh up any fees and other costs associated with switching your loan, with the expected savings and benefits of the new loan product.