How to Deal with A Rising Interest Rate Environment

How to Deal with A Rising Interest Rate Environment

With each passing day, the rumblings around interest rate rises continue to grow louder. With the latest CPI data from Australia showing that inflation is now sitting at 3.5%, the calls keep coming for the RBA to act sooner rather than later on interest rates. We’re also hearing a similar story out of the US where…

The Perfect Storm for Borrowers and Property Investors
| |

The Perfect Storm for Borrowers and Property Investors

It appears as though the Government and the RBA are pulling out all stops in a bid to get people to borrow, invest and spend money to stimulate the economy and create employment. The latest decision by the RBA to slash interest rates to a record low 0.1 per cent and embark on a range of QE…

As Property Prices Rise Can Sellers Meet Buyer Demand?
| | |

As Property Prices Rise Can Sellers Meet Buyer Demand?

2019 has started to look like a tale of two halves. In the early part of the year, property pundits were doom and gloom as the political and regulatory fallout from the most recent housing boom weighed heavily on market sentiment. APRA had been hard on lenders and that was keeping borrowers under wraps. At…

The Spring Selling Season is Getting Set to Heat Up
|

The Spring Selling Season is Getting Set to Heat Up

The early indicators are starting to look good for property prices as buyers are starting to show their hands ahead of the Spring selling season. Across the board, the indicators are starting to suggest that the recent weakness in property markets in many states is starting to scream opportunity for savvy buyers. The most obvious…

Australia’s economy is on a roll – Have Australian Interest Rates bottomed?
| | |

Australia’s economy is on a roll – Have Australian Interest Rates bottomed?

Australia’s economy on a roll, thanks to state governments Economist, AFR Mar 10 2017 Property developers are building more houses, farmers are exporting more food and foreigners are paying more visits. Brendon Thorne Gold rush in the late 19th century so enriched Charters Towers, an outback town in the state of Queensland, that it opened its…

Wishing you all a very Happy and Prosperous 2017
| | | | |

Wishing you all a very Happy and Prosperous 2017

I would like to wish you a very Happy New Year and a prosperous 2017 ahead and let’s enjoy the festive season before we start afresh again. I think we should all be grateful that we have come through a year that had some nasty surprise outcomes for investment markets which didn’t really have any…

The New RBA 1.5% Rate: What This means for Australian Property Investors
| |

The New RBA 1.5% Rate: What This means for Australian Property Investors

As I speculated last Monday, the June quarter CPI report gave the Governor enough ammunition to act. The Reserve Bank said a rate cut will create “room for even stronger growth” as the inflation rate is set to remain below its target range and risks in the housing market abate. Read more.. The Reserve Bank…

The Post Budget and pre-Election update
| | |

The Post Budget and pre-Election update

Hi Everyone, As we head into the end of the Financial Year for 2016 in Australia, I think it is worth looking at some of the perhaps surprising data that has appeared. Australia’s economy added jobs in April and the unemployment rate held at a 2 1/2 year low of 5.7 % as the number…

‘The New Normal’ – The Future for Australia’s Interest Rates
| |

‘The New Normal’ – The Future for Australia’s Interest Rates

I thought it would be relevant to share my thoughts about this concept that I keep hearing over and over from Fund Managers (especially in the Fixed Income markets) that we have entered a “New Age” of lower rates for longer. My experience in the past is that every cycle brings about this paradigm shift…