Interest Rates
Negative Gearing and the Mum and Dad Investors
Much has been posited about the typical Australian property investor, especially their salary. According to the ATO, 67% of investors claiming rental interest deductions take home under $80,000 per year. At least as far back as 2014, the data has been pulled apart and commentators have asserted that the data is flawed. Their argument is…
Read MoreRBA Meeting Minutes March 2013 – Construction Activity
The RBA’s March 2013 meeting minutes were issued today and with respect to the property market, the minutes stated “non-residential building approvals remained low and office vacancy rates had risen over recent quarters, reflecting softening demand for office space.” Members also observed that “dwelling construction activity had picked up further in the December quarter. Forward-looking indicators…
Read MoreConsumer House Price Expectations Index Moderates in January 2013
The Westpac-Melbourne Institute Consumer House Price Expectations Index moderated in January, all but reversing a spike in October. The Index indicated that 26.7% of respondents expect house prices to rise over the year ahead. This is a fall of 7.7pts from October, following a rise of 9.1pts between July and October. This reversal of consumer’s…
Read MoreRBA December 2012 Meeting Minutes point to subdued investment and labour market
The minutes for the December 4 Board meeting give three key reasons why the Board decided to reduce the cash rate by a further 25bps.
Read MoreRBA leave the cash rate at 3.25%
At its November board meeting today, the Reserve Bank decided to hold the cash rate steady at 3.25%. “Further effects of actions already taken to ease monetary policy can be expected over time. The Board will continue to monitor those effects, together with information about the various other factors affecting the outlook for growth and…
Read MoreMay RBA Minutes point to weakness in housing market
May’s RBA board meeting minutes outline the rationale behind their 50bp reduction of the cash rate. The minutes note that the domestic economy had been growing at a modest rate in early 2012 however, the activity varied across industries. The mining sector remains strong with a number of large projects underway and on the drawing board.…
Read MoreRBA May Board Meeting – Rates cut by 50 basis points
At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, with a low inflation print and decreasing growth forecasts. The minutes point to expectations of lower inflation;
Read MoreRBA April Meeting – Cash Rate Left on Hold
In the Reserve Bank’s April board meeting today, the cash rate was left on hold at 4.25%. This was in line with economists’ expectations, but there is growing support for an easing in the cash rate based on recent data such as poor dwelling starts and retail sales.The board pointed to a potential downward movement,…
Read MoreHIA voice concerns over the decline in residential construction activity
In a one page bulletin produced last week, the HIA called for interest rate cuts and supply side reforms to arrest the on-going decline in residential construction activity in Australia. The HIA represents the construction industry and by proxy has a vested interest in construction activity; however there is growing evidence of supply side problems with concerns…
Read MoreRBA February 2012 Board Meeting Minutes
Much to the surprise of most economists, the RBA kept the cash rate steady in February. Information available since the December meeting confirmed that economic conditions in Europe were weakening late last year, with significant downside risks. In line with this, most forecasters have lowered their forecasts for world GDP growth this year to a below trend…
Read More