No interest rate rises to 2020

I read an interesting article by Shane Oliver from AMP recently in which he predicted that the RBA would not raise interest rates until 2020. He also said that it is possible to get a further rate cut before rates go up.

He quoted that the softening of the Sydney and Melbourne property markets would be influencing this. While the labour market remains strong on a National level, wage growth has been slow and hence inflation also remains low.

This is good news for investors. Money is still cheap although harder to get.

It is important that you don’t get influenced by the negative press surrounding the Sydney and Melbourne markets. Overall all other capital cities (except Perth) are increasing in value but good news in most cases doesn’t sell papers so it is easier to report on the Sydney and Melbourne slow down. If you can get the finance at the moment it is cheap. If you can then pick out the right market (being Brisbane currently) you could do some clever investing