Interest rates, inflation, and fear: Adapt or fall behind
They discuss how global geopolitical tensions, including the conflict in the Middle East, are contributing to higher fuel costs and adding to Australia’s inflation pressures.
With inflation potentially rising above the Reserve Bank of Australia’s target band and exceeding 4.5 per cent, they note the resulting pressure on interest rates and investor sentiment.
Despite this, Tarrant says the Australian property market still offers opportunities for prepared, well-capitalised investors.
Gehlot shares his own journey, building a portfolio of 13 properties worth around $13–14 million after entering the market in 2021 during a period of low interest rates and strong liquidity.
The pair also discuss potential policy changes around capital gains tax discounts and negative gearing, which could influence investor behaviour but also create uncertainty.
They highlight immigration-driven population growth as a key demand driver, particularly in tight rental markets.
Overall, the duo says that over the next few years, the property market will be shaped by inflation, interest rates, and policy shifts, with strategic and adaptable investors best positioned to succeed.
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