Unless you have been stuck under the covers the last couple of weeks, you would have seen the media frenzy surrounding the financial markets roller coaster that has hit both the local and international market.
This in turn has led to a lot of speculation on whether the RBA “will or won’t” drop the cash rate in their next meeting to counter the confidence levels in the industry at the moment (they next on 5th September). As many know, any drop in the cash rate generally means lenders passing on the discounted rate to a consumer (which is what every property owner wants!).
I do find it quite interesting considering just a couple of months back, a lot of analysts estimated several rate hikes by the end of the year – but I guess that’s the whole nature of guestimates.
Based on the current market, I do think it’s fair to say there won’t be any rate hikes in the short-mid term – or as many economists believe in the foreseeable future.
Regardless, you can form your own opinion – but my advice is to keep at paying off your existing mortgages and working to build your investment portfolio as best you know how. There is nothing you can do to control the market anyway, but you certainly can manage your own portfolio for long term growth.
