In light of the tremendous volatility in global equity and commodity markets, starting in China and spreading to the rest of the world, analysits are revising down global growth forecasts. This has led to the local markets now pricing an 84% chance of a 25bps rate cut by December 2015 and a 38% chance of a further cut down to 1.50% by June next year. These odds are substantially higher than the previous week indicating cash market participants are increasingly in the view the RBA will cut rates at least once, and possibly twice in the next 9 months.

In May, the Reserve Bank cut interest rates to a record low of 2%. If auction clearances and experiences from February are any guide, this stimulus will again add more fuel to the fire, particularly in already hot housing markets of Sydney and Melbourne Read more >

 

Here is an interesting article looking at Sydney house prices compared to Castles in France

http://mobile.news.com.au/finance/real-estate/these-10-french-castles-are-cheaper-than-sydney-units/story-fnd91nhy-1227296545166

 

On the back of the recent drop in interest rates to 2% & the stimulus package from the budget (which is likely to increase inflation) a lot of our clients are now taking a conservative stance & are fixing their home loans for a very competitive rate.

Contact us today for your next property purchase or refinance needs.

Lending@iplanfinance.com.au
(02) 9571 8703

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