Budget 16 Property & Tax Changes

Budget

Negative gearing has thankfully been ruled out as an area the coalition will be attacking to provide budget savings. Any policy which creates a disincentive to self-fund your retirement is a ludicrous one in our view. Not to mention the net tax result of a diminishing property market.   So what has changed in the…

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RBA Meeting Minutes March 2013 – Construction Activity

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…

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Consumer House Price Expectations Index Moderates in January 2013

Consumer House Price

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…

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RBA April Meeting – Cash Rate Left on Hold

RBA Cash Rate

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,…

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RBA February 2012 Board Meeting Minutes

RBA 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…

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