What Tonight's Budget Means for Property Investors

Invast Investment Committee

Invast Financial Services

Hockey told reporters this morning the underlying deficit will come in below $40bn - which if true is better than the mid year economic review forecast. This is surprising, since the RBA has cut rates twice in anticipation of a slowing economy. We'll get a better idea of the composition tonight, our initial impressions were the final number would be above $40bn would doesn't seem the case. Either way, the most important point for property investors is short term rates are falling but bond yields are rising, suggesting higher interest rates down the track. If Hockey is right and the number genuinely falls below $40bn, it will be the first sub $40bn Australian budget deficit since the GFC. Impact for property investors is 1) Take advantage of low rates to 2) Acquire high quality assets that can not only withstand rising rates but also benefit from higher inflation. Also 3) Watch for retirees selling investment properties and trading up their primary residence on pension changes. Our note published yesterday (pre-Hockey comments) (VIEW LINK)


MORE ON



Comprising some of the most distinguished multi-asset investment experts in the industry, the Invast Investment Committee is at the heart of our Research and Analysis offering. Our 24 hour Research Team is constantly analyzing global markets...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.