The RBA concluded that “Recent data do not show signs of a bubble.” in a research discussion paper titled Is Housing Overvalued? (June 2014).
Last week’s RBA talk about credit controls, the so called macro-prudential, is a way of retaining low interest rates and maintaining overall sensible growth in housing prices.
The RBA stance flags the economy needs low interest rates to promote economic growth. The RBA does not want to use of higher interest rates as a way to subdue property markets given that housing construction, an anticipated engine for economic growth in a post mining-boom world, has started to pick up. Lower interest rates also help exporter growth by keeping the Australian dollar at a lower level.
Commercial lending is a legitimate way to boost income returns without the need to invest directly in property. The Credit Connect Select Fund gives the investor s the ability to earn a higher income, select a range of commercial loans and have the first mortgage protection.
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation, and needs.