Westpac have now brought their anticipated drop in rates forward 0.25% in October 2019 and another 0.25% in Feb 2020. Their chief economist Bill Evans has cited the need for the RBA to stimulate the economy. Although unemployment remains low at 5%, the RBA would like to see that drop even further. He has said that the RBA is not interested in using any conventional means for stimulation there rate cut is what it will look like being. When the RBA drops rates again, they will be at an all-time low for Australian investors. With yields in certain capitals still relatively high and vacancy rates across many suburbs at 1% it means that holding a property investment is generally cash flow positive. (Provided you have the right tax structure)
Anyway – a drop in rates is always great news for investors.
