Visa Debit Card notification

Thursday, 03 June 2010

Retail giant Woolworths has recently announced changes to the way VISA Debit Cards will operate in their group of stores. From 15th April, customers using VISA Debit Cards to pay for goods at Woolworths' checkout machines will no longer be able to use the Credit (Cr) option.

The VISA Debit Card can still be used at Woolworths’ stores by using the Savings (Sav) or Cheque (Chq) options on the checkout machines. This change ultimately means the VISA Debit Card will work over the EFTPOS network rather than through the VISA one at Woolworths’ stores. The fee structure for EFTPOS transactions and Credit(VISA) transactions are different. We recommended that you check the fees and charges structure associated with EFTPOS transactions.

Please note: There is no problem with your VISA Debit card. It is still fully functional. At stores other than those owned by Woolworths your VISA Debit Card will work as normal when you press ‘Cr’, ‘Chq’ or ‘Sav’. That is to say, that you can still access the VISA network in most stores when using your VISA Debit Card.

The stores that are part of the Woolworths family that will be implementing this change include BIG W, Woolworths Supermarkets, Safeway Supermarkets, Woolworths Liquor, Safeway Liquor, BWS, Dan Murphy's, Dick Smith, Tandy, Woolworths Petrol, Safeway Petrol, Caltex Woolworths petrol outlets, Thomas Dux and ALH.

Interest Rates on Hold

Wednesday, 03 February 2010

At its meeting today, the Reserve Bank Board decided to leave the cash rate unchanged at 3.75 per cent.

Govenor Glenn Stevens stated “The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still likely to be modest in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, recovery has been much quicker to date, though the Chinese authorities are now seeking to reduce the degree of stimulus to their economy. Global financial markets are functioning much better than they were a year ago. Credit conditions nonetheless remain difficult in the major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns have increased.

In Australia, economic conditions have been stronger than expected, after a mild downturn a year ago. The effects of the fiscal stimulus on consumer demand have now faded, but household finances are being supported by strong labour market outcomes and a recovery in net worth. Public infrastructure spending is now boosting demand, as is an upturn in housing construction. Investment in the resources sector is strong. The rate of unemployment appears to have peaked at a much lower level than earlier expected.

Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by the fall in commodity prices at the end of 2008, a noticeable slowing in private sector labour costs during 2009, the recent rise in the exchange rate and a period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it down are now abating. Inflation is expected to be consistent with the target in 2010.

Credit for housing has been expanding at a solid pace, and dwelling prices have risen significantly over the past year. Business credit, in contrast, has continued to fall, as companies have sought to reduce leverage, and lenders have imposed tighter lending standards and in some cases sought to scale back their balance sheets. The decline in credit has been concentrated among large firms, which generally have had good access to equity capital and, more recently, to debt markets; credit conditions remain difficult for many smaller businesses.

With the risk of serious economic contraction in Australia having passed, the Board had moved at recent meetings to lessen the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker. Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point. Since information about the early impact of those changes is still limited, the Board judged it appropriate to hold a steady setting of monetary policy for the time being.

Interest rates to most borrowers nonetheless remain lower than average. If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term.”

Million Dollar Homes

Wednesday, 03 February 2010

The Real Estate Institute of Victoria recently predicted that the median house price would be $1 million dollars in Victoria in ten years time. You may think that sounds extreme, but a quick breakdown shows otherwise.

Let’s first take a look at what has happened to the median house prices over the past 10 years. Using information from Residex.com.au we can estimate the median house price in 1999 for the following cities:

• Sydney: $315,000
• Melbourne: $199,000
• Brisbane: $150,000

In 2009, Residex valued the median house prices of the same cities:

• Sydney: $615,000
• Melbourne: $519,00
• Brisbane: $459,000

Over this ten year period house prices almost doubled in Sydney, and easily more than doubled in Melbourne and Brisbane. If house prices continue to increase at a similar rate over the next 10 years, all these cities will have a median house price of over $1 million dollars.

Flinders Institute of Housing, Urban and Regional Research professor Joe Flood recently said that ‘the writing is on the wall for the Australian dream. The country that promised limitless land, cheap housing and near universal home ownership to all comers now has the most expensive housing in the world.’

While house prices fell sharply in the US and declined in Europe as the Global Financial Crisis took hold, the same has not happened here. The Australian government’s recent removal of the first home owners boost and the Reserve Bank of Australia rising interest rates may momentarily halt rising house prices. In the long term however, Australia’s strong population growth and widely rumoured housing shortage will ensure owning your own home becomes increasingly more expensive.

If you are thinking of getting into the housing market it may be better to do it sooner rather than later. Whenever you do decide to buy, your credit union will be there to help. Our website has a lot of information on purchasing property, and our staff members have a wealth of experience in helping people to find the best home loan.