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RBA Cash Rate December 2022: Has Australia Reached Its Inflation Summit?

As we start to close out the year that was, the Reserve Bank of Australia (RBA) has just released its last official cash rate for 2022!  

As global economic outlook shifts to a more “positive” note with the US and Australia seeming to have escaped a recession, have we just received another early Christmas present from the RBA?  

Tune in to find out if the cash rate has been paused for the first time in 7 months, plus Ben unpacks these key themes in this month’s economic update: 

  • The slowing of interest rate hikes in the US  
  • A case for pausing interest rates in Australia moving forward  
  • How the property market will finish out 2022 and begin 2023 

Quick tip! If you’re keen to forecast your cashflows through this period, use the handy MoneySTRETCH feature on our free money management platform, Moorr. Click here to sign up or log in. 

 

Plus, Ben also includes his latest news and commentary on…

👉 The RBA’s Official Cash Rate!  

👉 Adjusted OECD Global Outlook Forecasted Figures 

👉 Why US interest rates will always go higher than Australia!  

👉 China’s low inflation figures yet Zero COVID Policy economic chokehold  

👉 Is the Eurozone set to go into a recession in 2023?  

👉 Has interest rates finally curbed spending here in Australia?  

👉 Employment levels reach record highs!  

👉 Property prices continue to tumble (Note: Folks, there is no such thing as a typical National Dwelling Property!  Tune in to Episode 418 where we explain why it’s all about “markets within markets”!)  

👉 Ben’s Big Property & Economic Predictions for 2023 

👉 CoreLogic’s Home Value Index: 31 November 2022   

Plus much more! 

 

Free Resources Mentioned:

🔥 The RBA’s Financial Stability Review – October 2022

🔥 Episode 418 | The Hidden Forces Driving Property Values

🔥 Related Episodes:

 

And One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

 

 

 

 

 

 

RBA Cash Rate November 2022: Rate Hike Again But When Will It Stop?

While the race that stops a nation will have the eyes of Australians everywhere today, another decision drawing just as much interest has been released.  

In the Reserve Bank of Australia’s (RBA) November release – which happens to coincide with Victoria’s Melbourne Cup Day – Ben breaks down our seventh consecutive rate hike from the data behind this decision to how can we, as consumers, can curb interest rates.  

And, of course, it’s not a monthly RBA update unless it’s jam-packed!  

We’ll hear Ben explain the headline changes (and 2 of his biggest disappointments) in Australia’s newly “reprioritised” Federal Budget, the darkening outlook on global growth, and his observations – and future forecasts — for our Property Market. 

Another gigantic episode that sees Australia continue to balance the tightrope between economic growth and inflation, tune in now!  

 

Plus Ben unpacks these key themes in this month’s economic update: 

  • Global growth outlook continues too sour  
  • The RBA is following through on its promise, because we continue to spend too much… 
  • Politics is a mugs game – there is just one problem – they control the economy 

Quick tip! If you’re keen to forecast your cashflows through this period, use the handy MoneySTRETCH feature on our free money management platform, Moorr. Click here to sign up or log in. 

 

Plus, Ben also includes his latest news and commentary on…

👉 The International Monetary Fund: “The worst is yet to come” 

👉 What we, as consumers, need to do to halt interest rates  

👉 The US hikes its rates, but why Australia won’t reach these levels… 

👉 China & Europe’s continued economic struggle 

👉 Australia’s inflation surges to highest annual pace in more than 32 years 

👉 Our “reprioritised” Federal Budget & it’s key changes  

👉 Why the new Government’s solution to Housing Affordability has a thumbs down from Ben 

👉 Has rising rates really stopped our spending?  

👉 Ben’s past month prediction, future forecasting, and how to avoid getting swept up in a fearful market sentiment.  

Plus much more! 

 

Additional free resources:

🔥 Episode 169 | Alan Oster – NAB’s Group Chief Economist – on Interest-Rate Rise, Tax Cut and The Future of Residential Property

🔥 Episode 389 | Interest Rate Rise: What this means for YOU! – Chat with Evan Lucas

🔥 Episode 390 | Will Interest Rates CRASH the Property Market?!

🔥 Episode 404 | What do Inflation, Interest Rates & Broccoli have to do with Property?!

 

And One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

 

 

 

 

 

 

413 | The Future of Price Growth in Australia

Passing on interest rates to tenants. Updating property plans. The future of price growth and…  

Restructuring your mortgage (is Line of Credit still the best?!)   

Yep.  Folks, we’re back with another ultra-packed Q&A session that’s all about being smart with your money in an unpredictable market.   

 Here’s a teaser of what else we cover… 

  • How can landlords offset these extra costs from rising interest rates?!  
  • The #1 biggest indicator that it’s time to update your property plan 
  • Why housing prices WON’T stagnant and housing prices will STILL grow – even given today’s market!  
  • The Veblen Effect: What it is and why it’s important in today’s market cycle!  
  • Where most of Australia’s growth actually came from (aka. A short history lesson)  
  • The Role of Income Growth, Immigration and Inheritance  
  • What are Quasi Lines of Credit?! (are they a good idea??)  
  • The markets Ben is (and isn’t) worried about in this market cycle, plus  
  • Tons more gold!!  

It’s another massive episode folks, give it a listen to get the facts and cut through the noise! 

 

Questions We Answer…

Question 1: Janet on When should you update your plan? 

Hi Ben and Bryce, 

My husband and I are big fans of the podcast. 

We have learned so much listening to the both of you over the years. 

We’ve actually been to your team Empower Wealth in North Melbourne for financial planning and property investment advice and that was before our honeymoon. 

Now we have 1 child (14 months old) and 2 properties in, one principal place of residence and 1 investment. This was all factored in by your team as part of our lifestyle by design plan. 

There is a component to the plan which is to get our 3rd property in a few years time as investment towards our retirement plan. 

However, with the changing market, I’m starting to wonder if its time to bring things forward or we stick to the plan. 

So my question is once you’ve got a property investment and a retirement plan set up, how often would you recommend getting this revised and looked into? 

I would love to hear from you two and keep up the good work on the podcast. 

 

Question 2: Adam on Can you pass on interest rate rises to tenants quickly? 

Hi Boys, 

Love the show and thanks for all the tips and all the advice that you provide each week. 

My wife and I have 3 investment properties and given the market is a bit softening at the moment and there’s a lot of uncertainty out there, we think it’s really good time to try to buy again. So we can get a loan at the moment our broker confirmed to us that we can borrow at the moment. 

However, when I run our numbers on next year in  about 12 months time, our 3 properties that we do have at the moment are currently on the fix rate and we fix them at about 2% interest and all 3 come off their fix periods in about 12 months time. 

So if we did buy again now by fourth place, when the loan repayments we’ve got on the other 3 next year did it at fixed period, that’s more than $2000 a month extra in mortgage repayment will be up for so we’ll be in trouble if we borrow again right now so we’re a bit in a snag. 

I’m just curious in your thoughts, I think you’ve mentioned before in your show that the Australian economy, I think is about, $40B in residential loans that fixed at the moment with low interest rates  in the last few years and they’re all gonna be coming off fixed periods next year. 

So there’s gonna be a lot of people, lots of household all of a sudden have to find material amounts of money each month in extra loan repayments. For those who are investors like us, we can just wanna try to pass on a lot of these costs to our tenants and raise the rents that they are paying given there already is rental crisis across the country.  How do you see this playing out in the economy. 

If you have a lot of landlords all of a sudden wanting to put the rents up substantially because interest rates have blown up and loan repayments are higher, do you think we’ll be able to recover some this cost through increasing the rents at all?
 

Question 3: Michael on Interest Rates, Borrowing Capacities and long term impact on price growth 

Good day Ben and Bryce. 

Hope you’re both well. 

Ben, condolences on the loss to Sydney, mate.  I know that’s probably a tough one. 

My question to you both is regarding to the overall pricing of housing and I know it’s broad question but with regards to the correlation between interest rates and the impact it have on borrowing capacity. 

I know there’s been peaks and troughs over the last 30 years but I’ve seen over time you know a gradual decrease on the amounts that we pay on the interest rates therefore our borrowing capacity increased. 

My question to you is that now that we’ve reached the bottom point where we’re on our way up, do you foresee that having a long term impact on the increase in housing value? 

I know there’s other factors in play but as far as borrowing capacity goes, I can see that there is quite a strong link in interest rates and the borrowing capacity. 

Just curious to get your thoughts on that and what’s the impact it will have. 

Thanks. 

 

Question 4: Karen on Borrowing Strategy – what is the optimal review? 

Hi Bryce and Ben, 

My name is Karen and I have a question about refinancing a principle place of residence and investment properties. We currently have a loan of credits on our principle place of residence.  

We used this loan of credit to purchase 3 investment properties and these 3 investment properties are all with different lenders. With the current interest rate rises and some of these loans coming off fixed interest, we are now wanting to refinance some of those. 

Our mortgage broker, this is my question for you, our mortgage broker is suggesting because of our age which we are 51 and 52 respectively, we have high disposable income because our children are all over 18 and that we combine all of our loan in to one big facility with AMP and have it split in to various splits and so our home loan on PNI and then the various investment properties as interest only. 

I’m really concerned with this approach because it goes against everything that I’ve listened to in your podcast today and I’m would just be really interested to hear what you have to say on the next approach. 

So basically the splits for the investment properties would be interest only and our principle place of residence P&I and she’s saying that this is the only way forward for us to be able to refinance the whole lot. 

Ideally, I’d like to keep the line of credit. 

I like the flexibility of it and I’d like to keep the investment properties with loans separate to our home. 

Free Stuff Mentioned… 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – What we’ve got in store for you… 
  • 1:18 – Folks, this is how you can get a free Start & Build Course! 
  • 2:53 – Negative things happen. Negative mindsets make it…. 
  • 5:19 – Question 1: When should you update your plan? 
  • 6:56 – How you can tell it’s time to change!  
  • 7:38 – And this is WHY you’d want to bring it forward!  
  • 9:20 – 97% of the time this what you’ll be doing…  
  • 11:21 – THIS is where they sit on our “7 Grades of Financial Wellbeing” scale (Don’t know what this is? Take the quiz here!)  
  • 12:46 – Question 2: Can you pass on interest rate rises to tenants quickly?  
  • 14:42 – We haven’t seen this for the last 3 years… 
  • 15:44 – When are we going to see the 3 big tranches?! 
  • 16:15 – Rents will be going up…  
  • 18:34 – How Adam can offset costs!  
  • 20:41 – Legislation that property owners should consider!  
  • 22:47 – THIS is a good rule of thumb for measuring costs and profit… 
  • 25:38 – Want to future forecast your modelling? Try Moorr, our online money management platform and it’s forecasting feature: MoneySTRETCH.  
  • 27:48 – Question 3: Interest Rates, Borrowing Capacities and long-term impact on price growth 
  • 28:57 – Most of this growth has to do with Australia’s lowering cost of M___!  
  • 29:40 – Income growth, affordability & interest rates  
  • 31:36 – Ben’s predictions for wage and population growth! (THIS will always push growth)  
  • 32:38 -These are the markets Ben’s worried about… 
  • 32:55 – The Role of Inheritance and Immigration 
  • 34:51 – Recap: What were the “Roaring 20s”?  
  • 35:17 – Why housing values WON’T stagnant! 
  • 36:14 – This is why price growth will continue! 
  • 38:40 – If you haven’t check out THIS amazing chart (bottom of page 1) from CoreLogic… 
  • 39:17 – The Veblen Effect 
  • 41:40 – Question 4: Borrowing Strategy – what is the optimal review? 
  • 44:21 – Who is AMP?  
  • 45:19 – Why you don’t really need a line of credit… 
  • 46:08 – Some other great options!  
  • 47:06 – What Ben does with HIS line of credit!!  
  • 47:23 – Why there’s still opportunity for older aged Australians… 
  • 49:51 – What is a Quasi Lines of Credit?!  
  • 50:34 – If you want more on How to Beat the Banks, check out Ben’s newest educational series here.  
  • 51:17 – Leave us a Question on our Speak Pipe – it’s never been more important!  
  • And… 
  • 51:50 – Did you know, the body of the Apple phone is actually pretty cool. Here’s why… 
  • 54:12 – The Top #10 Most Successful Celebrity Investors 
  • 57:22 – Honourable mentions for the women… 

 

RBA Cash Rate October 2022: How To Stop Inflation Psychology!

Overnight Update: This video was filmed & produced before the UK’s mini-budget was scrapped.

Folks, Ben’s RBA Monthly Update doesn’t get much bigger than this… 

The Reserve Bank of Australia has once again lifted interest rates, property market sentiment is shifting fast, and despite all, Australia’s retail spending remains at record high levels.  

Tune in now to find out if we have finally broken the 50 basis point hike rate trend as we slowly rise above a neutral cash rate.

Meanwhile, on the global scene, the United States’ inflation runs rampant, China battles the impacts of COVID on its economy and global growth has sunk even lower. 

This update points to the looming question: Will Australia be pulled into a global recession? 

(Psst…Stick around to the end of the video to get access to free resources on how to beat the banks at their own lending game!)

 

Tune in to hear Ben unpack all this plus these key themes:  

  • What does Governor Lowe mean by “Inflation psychology in the community” and as consumers, what can you do to help stop inflation!! 
  • Interest Rates are going up again, but when will the RBA take a pause on the cash rate, and why?  
  • The crucial downside risks & upside opportunities to Australian property values in the short term 

 

Quick tip! If you’re keen to forecast your cashflows through this period, use the handy MoneySTRETCH feature on our free money management platform, Moorr. Click here to sign up or log in. 

 

Plus, Ben also includes his latest news and commentary on…

👉 Currency Crush: The US Dollar vs. The World

👉 The Eurozone is in for a cold winter…

👉 Unpacking the adjusted global economic growth figures

👉 A dip in retail spending: have we reached the peak?

👉 Digging, Growing & Tourism: The Backbones of Australia’s Economy

👉 Australia’s GDP Data for the June Quarter

👉 CoreLogic September Price Movements

👉 To watch the free bonuses on how you can beat the banks at their own game, click here.

And heaps more!

 

Additional free resources:

🔥 Episode 169 | Alan Oster – NAB’s Group Chief Economist – on Interest-Rate Rise, Tax Cut and The Future of Residential Property

🔥 Episode 389 | Interest Rate Rise: What this means for YOU! – Chat with Evan Lucas

🔥 Episode 390 | Will Interest Rates CRASH the Property Market?!

🔥 Episode 404 | What do Inflation, Interest Rates & Broccoli have to do with Property?!

 

And One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

 

 

 

 

 

 

RBA Cash Rate September 2022: From Trough to Peak: How Bad Is Today’s Market?

Inflation is at a 20-year high at 6.1% – and continuing to rise.  

So how has the Reserve Bank of Australia responded in its September cash rate?  

Tune in to find out and uncover if Australia’s cash hikes are set to slow down soon…or if the RBA’s new forecast reveals otherwise. 

Across the globe, the inflation story continues to unfold and trade tensions between Russia and the Eurozone simmer. We see oil prices and energy suppliers shifting which leaves the question: How will it impact Australia?  

Plus Ben unpacks these key themes in this month’s economic update: 

  • The US Fed’s warpath against inflation   
  • RBA is back at it again with another rate rise  
  • Why APRA must act now to reduce its buffer rate 
  • The trough and peak results in Australia’s property market during COVID 

 

Quick tip! If you’re keen to forecast your cashflows through this period, use the handy MoneySTRETCH feature on our free money management platform, Moorr. Click here to sign up or log in. 

 

Plus, Ben also includes his latest news and commentary on…

👉 Outcomes from Australia’s Job Summit and how immigration will affect our economy

👉 China’s stimulus packages and the economic impacts of its zero COVID policy

👉 The RBA’s updated forecast for the future

👉 Job vacancies vs. Unemployment rate: Which is higher??

👉 Consumer Confidence put to the test (Have we curbed spending?!)

👉 Wage Growth and its effects on Borrowing Power

👉 Housing prices tumble

👉 Housing Credit and Building Approvals figures: Is there a housing shortage on the cards?

👉 CoreLogic’s Home Value Index – 1 September 2022 

And much more! 

 

Additional free resources:

🔥 Episode 169 | Alan Oster – NAB’s Group Chief Economist – on Interest-Rate Rise, Tax Cut and The Future of Residential Property

🔥 Episode 389 | Interest Rate Rise: What this means for YOU! – Chat with Evan Lucas

🔥 Episode 390 | Will Interest Rates CRASH the Property Market?!

🔥 Episode 404 | What do Inflation, Interest Rates & Broccoli have to do with Property?!

 

And One Final Word…

If you’re worried about your finances or if you have no clarity on your cash flow position, we strongly recommend you to organise your finances now. It’s more important than ever to have a clear view, down to the exact cent, on how much you’re spending each month and how much surplus you’ve got. If you don’t know it, then log in to your Money SMARTS Platform here and update the numbers.

Don’t have an account yet? Create your free access below and we’ll also send you an e-copy of the instruction manual which is also our best-seller book, Make Money Simple Again. Just fill in the form below and we’ll email it to you right away.

 

 

DISCLAIMER: This podcast is general information only and is an opinion comment by Ben Kingsley. The information contained in this video is for Australian residents only. The information does not take into account the particular investment objectives or financial situation of any potential viewer. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. No investment decision or activity should be undertaken on the basis of this information without first seeking qualified and professional advice.

The Property Couch, its employees or contractors do not represent or guarantee that the information is accurate or free from errors or omissions and therefore provide no warranties or guarantees. The Property Couch disclaims any and all duty of care in relation to the information and liability for any reliance on investment decisions, claiming the use or guidance of this publication or information contained within it.

For more information, please visit: http://thepropertycouch.com.au

 

 

 

 

 

 

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