October Update

Since the big changes to superannuation which came into force in July (see my previous post), things been relatively quiet on the money front.

In October the Reserve Bank announced its third cut to interest rates in 5 months with the official rate moving down to an all time low of 0.75%.  This move, whilst aimed at increasing employment, seems to be once again stoking house prices after a moderate slow-down early this year. There is not much room to move interest rates down from here but the Reserve Bank appear open to making further cuts. It remains to be seen how things play out. Regardless, it would appear that low interest rates might be with us for some time to come. Which is good for borrowers but bad for savers and retirees.

Stock markets globally continue to perform well on the back of lower rates globally and fears abating regarding a trade war between China and the United States.

For first home buyers the Government has announced a new scheme which allows those who meet the criteria to purchase with a deposit of as little as 5%. Some of the details are yet to be announced but if you would like to understand the basics of the scheme please click here.

Thanks

Shelley Marsh