Clear As Mud

There are times when the economic environment is fairly predictable and we have strong views about which way interest rates are going and advise our clients accordingly.

This is not one of those times.

There is a huge disparity of views around interest rates, property prices and tax outcomes right now. Low auction clearance rates reported in the media again today over the weekend (both buyers and sellers hesitant and having stand offs). Unstable global geopolitics aren’t exactly helping. For example, one major bank is forecasting 2 rate hikes in the next 12 months, another one rate cuts.

We are the first to put our hands up in these times and say we are neutral and open minded about high level potential outcomes. All we can do right now is:

1. Manage your risk. You may want to consider locking in some of your rates at present, but you also may not. Our views are not strong right now. We are, however, paying attention. Next major data point is inflation later this week . Just ask yourself, if rates do go up another 1% (or down), how will that look for you?

2. Keep your eye on the long term and ignore the noise. If you continue on your current daily path will you be in a significantly better place financially in 5 years? If not, lets chat and change it - book in below. One small change now could significantly improve your wealth in 5 years.

3. In times of uncertainty there is great opportunity. We are seeing clients pick up properties at decent discounts right now, with less competition and hence better quality properties and better prices. There are still transactions happening, reasonable prices, lots of first home buyers in the market. Sub $1m still relatively active.

4. Consult your trusted financial team about how the proposed tax changes could affect you. Few people wont be affected. Do you need to be taking action before 30 June 2027? Need a great financial planner or accountant? Get in touch, we work with awesome people.

BOOK MY STRATEGY SESSION HERE

Look forward to your email at [email protected] or call me 0403397060

ABC News Interview

Thanks for interviewing me recently ABC South East talking about property tax changes and in particular its potential affect on Snowy Mountains families and investors. Click on the image to listen to the interview on our website:

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That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team