Mercury Financial Services Pty Ltd

24/09/2024

08/08/2024

🌟🇦🇺 Mercury Financial Services extends our heartfelt congratulations to Paris Olympian Aislin Jones for her outstanding efforts! 🇫🇷 Finishing 25th in the individual competition and 11th in the mixed team event, Aislin has truly demonstrated that she is a world-class athlete.

We are proud to support Aislin on her incredible journey as she sets her sights on Los Angeles 2028.

To show our commitment, we’ll continue backing her every step of the way.

And here’s a special offer: if you come to us for assistance with your financial goals and mention Aislin, we’ll donate a portion of our commission to her fundraising activities.

Let’s support Aislin together and help her reach her new aim



Pictures Nathalie Gallois ISSF media

16/07/2024

📣 Exciting News from Mercury Financial Services! 🌟

We are thrilled to announce that Mercury Financial Services is proudly supporting Aislin Jones, a two-time Olympian and incredible athlete on her journey to the 2024 Paris Olympics! 🥇🇫🇷 and beyond.

To celebrate this partnership and give back to our community, we’re excited to introduce our Community Benefits Program! 🤝✨

🔹 Here’s How You Can Be Part of Aislin’s Olympic Journey:

Visit Mercury Financial Services for help with your residential or business loan.

Mention “Team Aislin” when you talk to us.
We’ll donate 20% of our commission to support Aislin’s campaign for the Paris Olympics and her future events! 🎯💪

This is your chance to support an amazing local athlete while getting the financial support you need. 🏡💼

Like & Share this post.

Plus, if you’re part of a club or community organization that could benefit from this program, we’d love to hear from you!

📩 Reach out to us to learn how your organisation can get involved and make a difference together!

Let’s unite to support Aislin as she aims for gold in Paris and beyond! 🌟🏅

07/02/2024

Everyone

23/12/2023

🎄✨ Merry Christmas to our clients and families! 🌟🎁

May the magic of the season fill your hearts with joy, warmth, and delightful moments. 🎅✨

Thank you for your trust and partnership. We appreciate your support and look forward to working with you in the coming year.

Wishing you a holiday season filled with laughter, love, and unforgettable moments.

Merry Christmas and Happy safe and prosperous New Year. 🌲🥂

05/12/2023

Results of this weeks Reserve Bank Meeting.

11/06/2022

Interest Rates - What History Can Tell Us

Going into the May RBA Board meeting, economists thought the three possible scenarios were possible: no move, a 0.15 rise or a 0.4 percentage point hike. Financial Markets were fully priced for a 0.15 percentage point move. By moving by 0.25 percentage points (to 0.35%) the RBA obviously wanted to do something different for its first move in over one year.

The reason given why interest rates have gone up is what you would expect: the economy is doing so well that it doesn't need more help, and inflation is rising strongly. The RBA appears comfortable about the economic growth outlook, although they acknowledge the various risks (China and COVID, Russia-Ukraine the impact of higher inflation). The RBA is forecasting that the unemployment rate will decline to 3.5% by early next year and remain there. The RBA suggested that much of the recent rise in inflation has been down to global factors, although they noted that domestic factors are playing an increasing role.

A further rise in the annual inflation rate is expected over the next 3-6 months (although I think the largest quarterly rise may have already happened). Inflation is then expected to moderate, with 3% the forecast by mid-2024. Using as evidence their liaison program and business surveys, the RBA feels confident that wage growth is rising, despite it not yet being evident in the economy-wide data.

Demand is expected to remain strong, but there is greater uncertainty about supply
It is hard to argue that the cash rate should be at 0.1%. Inflation is at its highest level in over two decades, and the unemployment rate is at its lowest level in almost five decades. I had thought they might have delayed moving until June until stronger wages growth was more evident. But the RBA clearly had decided it has seen enough evidence on that front.

Higher interest rates work by reducing demand. Higher interest rates reduce the incentive to borrow, as well as reduce the cash flow of existing borrowers. They can reduce asset prices (such as house and equity prices) and encourage households to increase savings. It can also result in a higher exchange rate.

The uncertainties on the demand side are how much will consumers spend as they face declining real wages growth (wages growth less than inflation) and higher interest rates given the level of household debt. The evidence to date is that consumers in the aggregate are still spending, although some households are starting to find the going tough. How that evolves will play an important role in terms of how high and how fast interest rates will rise over the next year.

The cash rate is not the only financial variable that moves the economy
Much of the focus is on the cash rate. But other variables can also have a strong influence on the economy. The cash rate typically has a significant impact on the variable mortgage rate. But fixed mortgage rates are driven more by financial market views of future cash rate movements. And with financial markets now expecting significant rises in the cash rate over the next couple of years, there has been a notable jump in fixed mortgage rates over the past couple of months (particularly longer than 3 years').

Movements in asset prices (such as housing prices and equity markets) can also influence the economy. House price growth has moderated noticeably in recent months, partly reflecting rising fixed mortgage rates. The rising number of homes for sale and affordability concerns though have probably played a bigger role. Worries about rising global interest rates have certainly played a role in the recent weakness of equity markets.

What history tells us about this interest rate cycle
In the four monetary policy tightening cycles in Australia (and the US), the cash rates rose between 1.50 to 3.25 percentage points. So the amount of tightening currently priced in by financial markets is higher than each of the preceding four tightening cycles. The starting cash rate is (substantially) lower.

Three of the previous cash rate cycles were short (5-13 months). The other cycle was substantially longer, reflecting the surprising strength and duration of the largest mining boom in Australia's history as well as a global credit boom in financial markets (that resulted in the GFC).

The cash rate is heading higher. And so it should. The big questions from here are how high does the cash rate head in this cycle and how quickly will it get there. Financial markets appear to be pricing an aggressive amount of rate increases in this cycle compared with previous occasions. The higher than expected move at the May meeting will only add to financial market confidence about their views about the size and pace of future RBA moves.

Given the inflation outlook and extremely low level of the cash rate, financial markets could be right. I think in time the cash rate could hit 3%. But virtually all economists and the history of the past thirty years say that the pace of cash rate rises in this cycle appears too quick and probably too high. Time will tell who is right.

22/02/2022

State-by-State Housing Market Outlook

What are property prices likely to do in the year ahead? Australian property prices rose 22.1% in 2021, driven by low interest rates, pent-up post-COVID demand and government market support. While the outlook remains generally positive, it's a more nuanced positive outlook for 2022, with some headwinds emerging in the form of affordability challenges and rising interest rates.

VIC outlook

Melbourne's property market rose 15.1% and regional Victoria's property market rose 24.0% in 2021. Most forecasters expect a year of modest capital appreciation across Victoria in 2022, with weaker prices towards the end of the year if interest rates rise. Melbourne's inner city market is expected to remain relatively weak due to COVID-related challenges, whereas lifestyle-focused suburbs within a short drive of the city, and regional towns within a couple of hours drive from Melbourne, are likely to remain in high demand.

NSW outlook

In 2021, Sydney's property market rose 25.3% and regional NSW's property market rose 29.8%, so the NSW market is moving forward from a high base in 2022. There are no shortage of forecasters believing Sydney's property market is overvalued at present, as median house prices approach $1.5 million. However, the consensual view is more optimistic, with most forecasters expecting low interest rates to offset affordability challenges, with modest capital appreciation likely. Michael Yardney highlights regional towns within a couple of hours of Sydney such as the Central Coast, the Hunter Valley, Wollongong and the NSW South Coast, as being particularly well positioned for capital growth in a post-COVID world.

QLD outlook

Brisbane's property market rose 27.4% and regional Queensland's property market rose 25.2% in 2021. Most forecasters believe the future remains bright with continued further solid property price appreciation expected in 2022. The main reason is that Brisbane remains far more affordable than Sydney and Melbourne, with the city positioned to benefit from sustained interstate migration. The Gold Coast and the Sunshine Coast are highlighted by most forecasters as being particularly well positioned for capital growth in a post-COVID world, due to the coastal lifestyle and climate advantages they offer.

WA outlook

Perth's property market rose 13.1% and regional Western Australia's property market rose 15.0% in 2021. Most forecasters expect continued modest price growth in 2022 as post-COVID interstate migration continues to favour Western Australia. Perth is particularly well positioned for modest property price growth due to a shortage of housing and a falling unemployment rate.

SA outlook

Adelaide's property market rose 23.2% and regional South Australia's property market rose 17.1% in 2021, however their outlook is more mixed. Adelaide city is expected to remain relatively weak due to COVID-related challenges, while lifestyle-focused areas near the city such as Burnside and the Adelaide Hills remain well positioned for further capital growth.

NT outlook

Darwin's property market rose 14.7% in 2021, the outlook remains brighter than it has for the preceding six years of market weakness, prior to 2021. The key change is the net gain from interstate migration, as well as rental vacancy rates of under 1%. Property affordability is much better than in Sydney and Melbourne, so interstate migration is likely to continue supporting the market in 2022.

ACT outlook

Canberra's property market rose 24.9% in 2021. Canberra's median property price moved through $1 million with particular strength in the inner north, inner south, and Woden Valley. The 2022 outlook is for more subdued property price growth without the support of net interstate migration.

TAS outlook

Hobart's property market rose 28.1% and regional Tasmania's property market rose 29.5% in 2021, Tasmanian property prices have closed the gap with average Australian property prices. Most forecasters remain modestly positive about Tasmania's property price outlook in 2022 due to the lifestyle advantages on offer.

How a broker can help
The property outlook remains modestly positive in general, with some key regions positioned to outperform the broader market. If you're looking to make a purchase, it helps to discuss your loan options with a broker. With their in-depth expertise, they can compare, source and process the best finance solution for you.

This information is for general information purposes only. The information contained herein does not constitute financial or professional advice or a recommendation. It has not been prepared with reference to your financial circumstances or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice as to whether or not this information is appropriate for you.

28/04/2020

Confused about the Instant Asset Write Off ?