Business news - Finance, Investing and Savings

Brisbane auction results

BRISBANE’S auction volume and clearance rate increased last week, according to researcher CoreLogic.

Preliminary results show 53.5 per cent of auctions ended in a sale, up from 50 per cent the week prior and 39.5 per cent the same period last year.

In Brisbane, 191 auctions were held last week, compared to 181 the week prior and 198 last year.

On Saturday, a prime renovation site in Auchenflower sold under the hammer for $1.155 million.

Space Property Agents Judi ODea said 58 Thomas St was purchased for a huge sum compared to what has been offered on similar properties in the neighbourhood.

The renovators on 607sq m of land, she said.

The highest price Im aware of is $1.1 million which I sold in McNab St recently.

According to Ms ODea, the competition for renovation projects close to the CBD is hot.

Its demand for land and create your own dream home, she said.

This is a very scarce product.

The seller had owned the block with three separate flats for more than a decade, according to property records.

Card limits can hit you hard when you overspend at christmas

INCREASING credit card limits or signing up to a new card can be tempting at this time of year, but experts are warning shoppers to think twice before doing either.

Limits on plastic can start as low as $500. Financial services firm Canstars database shows about one in five cards will approve limits as low as this.

EARLIER: Too late to lock in your home loan interest rate?

This small amount wont suit many shoppers, as the most common credit limit for a platinum card is $6000, however for those consumers who are unaware, there are many cards with no defined maximum limits at all.

Experts warn that choosing a card with a large limit could a slippery slope towards debt woe, when shoppers allow themselves to make large purchases that can bite hard later.
It can also hamper ones ability to gain other lines of credit down the track, says Moneysmarts senior executive leader of financial literacy Miles Larbey.

If you are thinking about increasing your credit limit or taking out a new credit card, the thing to remember is that when assessing your credit limit lenders will look at the total amount of the limit of that card, not just the balance of that card,’ Larbey says.

It can impact your ability to borrow money down the track.

For instance if you have a $10,000 limit on your card, lenders will assess this as if you have a $10,000 debt when you apply for any other lines of credit, regardless of how much you owe on the card.

Latest Reserve Bank of Australia statistics show that as of October, Australians owed a whopping $51.4 billion on credit cards and more than $31.9 billion is accruing interest.

Larbey warns that credit cards should not be seen as free money and cardholders should take their card limits very seriously.

He says consumers can easily get swamped by buying presents and booking holidays in the coming weeks and not worry about the cost until bills strike in late January or early February.

Canstar research manager Mitchell Watson also says credit limits can do you harm without you even realising and its critical not to have multiple forms of plastic because it can give you unnecessary financial grief.

Having multiple credit cards, store cards, interest-free facilities and other personal loans with high limits or existing debt can mean that you have less spare cash available to meet repayments on a new loan and may not be approved for the loan you want,’ he says.