News that the Reserve Bank has kept interest rates exactly where they have since the start of the year is no surprise, and in doing so, have shown how 'safe' the RBA has been over the last little period. Although many of our shares investor cousins are doing it tough (although the smart active ones probably making a lot of dough), the RBA continues to hold the rates. I am beginning to think they are so fixated on keeping inflation at bay, that they are not actually looking at the rest of the data. Of course you'll 'hear' reports that they are, but currently the markets are, in my opinion, looking so negative, that this should have pre-empted a drop in the cash rate, and if this doesn't then what does? For property investors, this continual inflation minimisation policy that the RBA have in place is bad news; we need inflation to help boost our capital gains, but for the immediate future, its not look positive.
Welcome. I am an Australian property investor sharing my thoughts as I travel through the 'property investor experience.' You will find blogs about agents, the property market, our own properties any anything else in between. Enjoy.
Andrew's current thoughts
Andrew's Thoughts
Updated: October 2011
First time buyers in low price bracket: hold or bargain very hard on prices
First time buyers in medium bracket: hold
First time buyers in high bracket: buy, bargain down prices
Investors: acquire for capital gain, hold: do not dispose
Middle circle suburbs around CBDs should offer good value.
Thinking of:
Upgrading to better PPOR: yes
Value adding/reno of IP: yes, tradies looking for work
Increasing rents: No
Wednesday, October 5, 2011
RBA keeps rates the same and at the same time, becomes boring as batshit
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