April 2019 Newsletter

30 April 2019 · General news

It seems like our rain dance has been working… with the big 4 banks (and a couple of others) making it rain cash at the moment.
Not only can we access interest rates as low as 3.49% (not a misprint), there is also a bunch of lenders giving cashback for refinancing to them and even some are doing cashbacks for buying a property!
I had a client recently earn $6000 in cashbacks, by refinancing their properties.
This gives you an idea of how much the banks are battling for your business at the moment.
But before you call them charitable, the BIG 4 did profit $29.3 billion last year (yes that’s twenty nine thousand million dollars after expenses have been paid) so it’s probably only fair they decided to put their hand in their proverbial pockets and hook us up with some cash, don’t you think?
 
INTEREST RATES:
A lot of people are asking me for my take on interest rates at the moment (seemingly my crystal ball batteries have now been replaced) and my view is that we could actually see a couple of rate cuts in the next few months (as early as next month) and the banks will surely have to pass it on this time because their cost of funding has come down.
“Increased cost of funding” was their justification for the increases we have had lately, so they had better drop their rates if/when the RBA decides to do so or they will most certainly have (even more) unhappy customers.
 
 
ELECTION:
With a few more weeks of campaigning ahead of us, both sides of government have been busy but haven’t kissed many babies, or eaten a sideways sausage, yet…
However they have been busy throwing (the usual) barbs at each other and defending their policies, regardless of whether they make sense or not.
 
For instance, Labor took down their negative gearing policy from their website recently when questioned by property experts about where they got their data from.
Turns out, the policy was based on incorrect data all along and more than 4% of investors do actually buy new dwellings! This is quite an error as this policy has the potential to hammer property prices, via lower confidence and (even) less investor activity… oops
 
Lastly, below you will find some brief info on:
  1. How much have property values changed in 1 vs 5 years?
  2. How could the election change your finances?
  3. Want to earn more money? Maybe it’s time for a career change.
  4. Australia has a new 50c coin!
As always, book in a free chat if you want top discuss anything at all!