This month, the government has announced a series of new measures designed to improve housing affordability. We have provided a glimpse into the changes that may affect our clients.
FIRST HOME SUPER SAVERS SCHEME
From July 1, savers will be able to salary sacrifice extra contributions into their superannuation account above the compulsory contribution, up to a maximum of $30,000 in total and $15,000 in a single year. [Read more…]
The Reserve Bank of Australia (RBA) have left rates on hold for nine consecutive months. This decision comes after wage growth remains flat, retail growth stagnates, and major Australian banks raise interest rates independently. So, while the housing market continues to climb in value, wage growth is level pegging with inflation. [Read more…]
| The Reserve Bank of Australia (RBA) has left the official cash rate on hold at 1.5 percent. The RBA is said to be stalling for more time before raising rates due to the economy improving short-term, housing prices rising steadily, and a high debt-to-income ratio. However, the need to kerb the loss of a triple-A credit rating and credit risk may prove too strong to hold back over coming months. Australian housing market’s renewed growth continues to put pressure on monetary policy. As a result, Australian banks are raising rates independently to kerb credit rating loss with Standard & Poor’s – the world’s leading credit agency. |
The Australian economy is improving short-term, and housing prices are steadily rising. Both of these factors, along with a high debt-to-income ratio are seeing the RBA stall for more time before raising rates. However, the need to kerb the loss of a triple-A credit rating and credit risk may prove too strong to hold back over coming months.
Rates on Hold, But for How Long?
The Australian housing market’s renewed growth continues to put pressure on monetary policy. As a result, Australian banks are raising rates independently to kerb credit rating loss with Standard & Poor’s – the world’s leading credit agency. A solution, say economists, is to increase the cash rate. But, the Reserve is hesitant until the economy has fully stabilised. [Read more…]
March RBA Commentary
Introduction
Australia’s economic contraction in September was nothing more than a blip on our radar. Now the Reserve Bank suggest that our economy can get back on track, especially with construction leading the domestic economy. But, it will take time, so this means leaving rates on hold to support gross domestic product and inflation growth. [Read more…]
Tony South (PBF) & Steve Cooke (CFQ)
Connect Finance Qld is very proud to be a Corporate member of PBF. All of the Connect Finance Qld family are protected should the unthinkable occur of spinal chord injury. Not only are we protecting our staff and their families, but also proud to support those already living with spinal chord injuries in our community. Click the link to read more.
A regular doctor’s visit for a health check is considered normal. Likewise, regular services keep our vehicles in good running order. So why is it we do not check on our home loan (or investment loan) when it is one of the biggest financial commitments we will ever make. [Read more…]
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