A Seat On The Fence For RBA Governor
Minutes of the Reserve Bank of Australia’s February board meeting, released 18th March 2009, show the Banks governor Mr Glen Stevens taking a seat on the fence rather than make a recommendation regarding interest rates.
The Governor decided to offer a choice between a rate cut or a wait and see approach to see the results of previous cuts. Thank goodness the board decided on the wait and see!
Home Loan rates are already at historical lows.
My opinion is documented in a previous post. Australia must maintain relatively high interest rates in comparison to our trading partners to encourage investment and the flow of foreign capital to Australia.
This wait and see period is the ideal time to consider your property investment strategy. If all the international economic bodies are correct, Australian property values are overdue for a correction. Many predict a drop of upwards of 30%. Now! may be a time to take profit. Especially in the lower or first home buyer areas.
Get an up to date valuation on your properties. Check which properties are paying their way. Get rid of the dead wood and prepare to take advantage of a new wave of property bargains as the recession starts to hit home.