Up? Down? Sideways?
Thoughts?
Nobody knows really. Why waste time on loose theories about an unknown future (and if there is one thing we know about Trump is that he’s unpredictable) 😉
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Ask yourself these questions:
How healthy was the US economy before the election?
What monetary policy, tactics were available that were yet to be implemented?
How healthy is the Australian econmy?
What monetary policy, tactics were available that were yet to be implemented?
Where is Australian property on the property clock?
Now.
What $$ does Trump have to work with? Personally I believe Sweet FA, they are already so heavily indebted and then some, after Quantitative Easing (money printing). In short, his historical business style is pump money in and walk away if failing…as a Government this leads to inflation…interest rates go up….world money is dearer to get……thus our rates go up which we are already close to doing. Rapid inflation and interest rates climbing that ends well doesn’t it? Look to current bond rate movement to see what is already in situMy 2 cents worth is that it didn’t matter who got in this is where we (world) are going….he’s just going to speed it up.
This is the best case scenario…….you don’t want to think about international diplomacy
Disclaimer: This won’t happen on Day 1
Up? Down? Sideways?
Thoughts?Depends on what you think he does with Chinese and the threat of tariffs (this is going to have the biggest affect on Australian economy).
This said money is getting a lot more expensive here in the USA, some people are saying bonds are oversold on the rapid move….but I’m not sure, I expect to see a lot of inflation here in the USA over the next 4/8 years.
If you haven’t already you might want to lock in your fixed loans on aussie property sooner than later.
This is from ABC (Oz) online news today
I realise and accept there are probably just as many opposing views out there. I’m no expert, just someone who takes a real interest in this stuff and as a homeowner and investor I have skin in the game.
As an aside I have three adult children all renting apartments, two in Briz and one in Melbourne. Though they each earn between $60-85k if interest rates go up, likely leading to rent increases its game over and move back home/relatives. I don’t think its unique from what I can see…..$495 p/wk Melb (Brunswick) 2 bedder, $365 (Yeronga) and $300 (Kelvin Grove) p/wk Briz 1 bedders. These guys have good jobs,low debt, but are over the “sharehouse circus” they did for years.
Point being, the ability to absorb rate rises by the general populous I believe is minimal
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