We accept that the Reserve Bank were not modelling the Federal Opposition’s policy – but this memo clearly flags that changing negative gearing would impact rents.
The 0.25% cut in official interest rates by the Reserve Bank yesterday should see renewed activity from property investors, up graders and first-home buyers according to Shane Kempton, CEO of Professionals Real Estate Group.
These have been confusing times for borrowers with banks lifting rates outside of the RBA’s deliberations and this looks like being the new normal going forward.
Markets rise and fall and in the natural order of things, property is still the number one place to park your money, particularly if you take a long term view.
Lower rates are “the new normal” in the post GFC world with consumers now accustomed to them and likely to be highly sensitive to any future increases in rates.