Interest rates

There is a telling article on interest rates in the Weekend Australian Financial Review of October 13-14, 2012.

Apparently fixed-term home loans have been cut to the lowest levels since the early 1990's recession.

Some variable rates have been reduced to their lowest level (5.46 per cent) in 44 years.According to the article, the last time that variable interest rates were this low, Johnny Farnham's "Sadie" was the No.1 record in Australia.That is certainly a long time ago.

In the same edition, there is a report that "After several false starts, many are predicting the beginning of a housing recovery.........".

Hopefully the latest interest cut, which may possibly be followed by more, will lead to some sustained movement in the housing market.

The problems created by a stagnant and over recent years declining housing market, are ever present as we mediate property issues between separating couples.

It is hard enough to divide the assets of one household into two ( when each tries to hold on to a commensurate lifestyle) without the separating couples assets declining in value as the dispute proceeds.Valuations are a particular problem, as with delays in the court process, combining with declining asset values, it has often been necessary for couples to revalue assets a number of times,
adding to the costs of proceedings.

Of course, if the market starts to move then it is important that couples resolve their disputes in a timely manner as delays in the process can lead to one or both parties missing out on the opportunity to get back into the market before prices move out of reach.

Mediation provides separating parties with the opportunity to resolve their dispute in a timely manner and without the costs and delays associated with the court process.Providing proper disclosure is given and current valuations obtained, parties can resolve their dispute with the help of an experienced mediator, as soon as they are ready to sit around the table, rather than have to depend on a court to allocate a hearing date.

If the market begins to move, then clearly it is even more important that parties take advantage of the opportunity that mediation offers to resolve their dispute.

The vagaries of the market are always uncertain, however this is not the case with delays and court costs which seem an inevitable part of the litigation as distinct from the Mediation pathway.