LOWEST EVER RBA RATES - UPSWING IN PROPERTY INVESTMENT?
With not one, but two RBA Rate cuts expected, the question is whether this will create an upswing in property Investment?
RBA RATE CUTS:
- Bill Evans, the Westpac chief economist, recently revised their forecast to the RBA rate going down to 0.5 percent, with the first cut to come in October
- AMP Capital Diana senior economist, said that a rate cut is expected in November and early 2020
- NAB, Commonwealth Bank, and ANZ are following suit in their forecasts, so there is little doubt that by beginning 2020 we will see the RBA rate at 0.5%
PROPERTY INVESTMENT UPSWING?
So, will these rate cuts lead to an upswing into Australian property investment? – Highly unlikely.
- In its August “The Bigger Picture” report, NAB is expecting a fall in dwelling investments and other commentators are also expecting a continued slowdown in various markets.
- As always, however, there is not one market, meaning that whilst some areas will slow down, some segments and areas will continue to generate an upswing – the question is which ones will it be. And exactly that, is the question that is very difficult to answer, requiring very detailed and thorough research.
And the proverbial “crystal ball” to accurately forecast the future would not go astray either…
Property Friends is a specialist Property Investment Advocacy that has been operating for the last 14 years on the basis of 3 principles: Trust, Community & Progress. www.propertyfriends.com.au (03) 9758 5331.