If that isn't enough

If that isn't enough


When the Australian dollar is (disadvantageously) high against the American dollar, exports suffer and we wind up with a trade deficit, rather than a surplus. This has been our situation in recent years and at any other time should have resulted in a further cutting of the official cash rate, but no...

In recent times the RBA (in my opinion) has moved beyond its role as 'the keeper of inflation between 2% and 3% per annum' and has been playing a (de facto) role in influencing macro economic policy.

Now that price growth across the Sydney/Melbourne housing sectors is shifting to sustainable levels, I'd bet my house (and your kitchen sink) that the next official interest rate movement will be down.

I need to add a disclaimer here because I don't put it past the RBA board members to continue to sit on their hands and leave rates as they are, until inflation picks up again and a rate rise can be justified.

The other area of concern for the government and the RBA is the record high levels of household debt. Before being able to intelligently comment on the impact of our higher debt levels, I'd need to know a break up of that debt. Today, more and more Australians realise that they have a responsibility to take charge for their own financial futures, and to this end we (as a nation) seem to be more inclined to borrow to invest than the generation before us. So, on the one hand, household debt has risen as a ratio to household income, but so has the value of household assets.

if you'd like us to look at switching any of your existing interest only loans to principal and interest, let us know. It may just work out costing you less AND allow you to begin paying down your loan.

Yes please, have someone call me to discuss reducing my loan repayments and possibly paying off the loan at the same time

Partnering with you for your investment success,

Nick Lockhart











Founder, MRD Partners