This Month in Review
Despite all the talk about rising interest rates, the Reserve Bank kept the cash rate on hold this month as they eye off the rising Australian dollar with caution.
Throughout the market it seems the strict regulations imposed upon the banks are not only slowing the process for buyers but also dramatically reducing their borrowing capacity.
While most economic indicators tend to be showing sparks of growth here and there, there is still an overwhelming feeling of caution in the financial markets and stress-testing against excessive credit fallouts is now very much the norm.
Moody’s Investors Service claims any economic downturn is likely to hit investors hardest due to their exposure to the rental market, which is sensitive to unemployment. But for now it seems the rental market is likely to continue to remain tight. AHURI figures found more than 1.5 million households will be requiring government rent assistance by 2031 – about half of the increase due to rising private rental market costs.
New regulations have come to hit expats again as well – if you sell your home while living overseas now you could lose the owner-occupier CGT exemption under new rules from the federal government.
Download and read the full Market Essentials – August 2017 Report