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Just about every beacon and bellwether imaginable is pointing to the next movement to be lower interest rates. The timing of the next cut appears to be the only real unknown.
However from the RBA for June and into EOFY, interest rate remains on hold at 2.0%
Whilst that seems great news for Property Investors borrowing to expand their portfolio. The broader economy is flagging and in serious need of a boost
Across the country, property investors aren’t hanging around to wait for the next interest rate cut. All despite APRA’s need to press home the concerns and cause the banks and lenders to start pulling levers and changing policies to try and slow the Sydney and Melbourne markets.
Toowoomba, the quarterly growth in median house values is the strongest in the state - REIQ
REIQ Media Release - Saturday 23 May 2015.
Brisbane is the fastest-selling area in Queensland and also had the strongest lift to median house values for the year ending March 2015, according to the latest REIQ release.
REIQ CEO Antonia Mercorella said the data confirmed the REIQ’s position that Queensland was in the grip of steady, sustainable growth.
“This report supports the REIQ’s long-held view that those areas of Queensland that have been doing well are continuing to do well.
“Those areas that are struggling to recover from the resources downturn are still trying to stabilise,” she said.
“But what we don’t have is the start of another boom and bust cycle, which, as we all know by now, doesn’t really benefit anyone in the long term.”
Standout trends from the report include the general sustainable lift of median house values across the southeast, Toowoomba and the tourism centres.
“It’s great to see Brisbane and Toowoomba keeping that steady rate of growth that we’ve seen for the past 12 months.
Read more: Outside of Brisbane, Toowoomba is the fastest selling region in Queensland
Prime Minister Tony Abbott has ruled out changes to negative gearing, saying the government does not want to kick off the tax reform debate with increasing taxes.
Asked whether he would rule out changes to negative gearing, following an Australian Council of Social Service (ACOSS) report that called for the tax break to be restricted, Mr Abbott said: "Yes".
Read more at the Sydney Morning Herald
Naturally that comes as good news for the ears of existing and would be property investors..
Mark Spearing, the chairman of the REIQ in Gladstone, understandably keeps getting asked "What will the market do over the next 12 months?"
Spearing wrote more people were seeing the Gladstone market as a good buying prospect "with heaps of upside".
He noted a key indicators locally was the rental market that has stabilised over the quarter, that has been a long time coming.
"We all know the property market moves in cycles and now we are seeing some very interesting sales numbers come through, highlighting that more people are seeing our market as a good buying prospect with heaps of upside.
"Have we conceivably transitioned from an over priced market to an under valued one in super fast time?
While building has an important part in supplying new homes for the country's booming population, it also creates jobs and keeps the economic wheels spinning by encouraging investment.
The most recent figures from the Australian Bureau of Statistics reveal that building approval figures soared once more in February, falling just short of the record set in January this year.
In trend terms, approval numbers rose 1.6 per cent over the month. Approval figures did fall 3.2 per cent in seasonally adjusted terms, but the Housing Industry Association (HIA) says the strong result continues to point to a booming building sector.