opinion
Andrew Crossley

Australia's economy

By Andrew Crossley

If you want to succeed in property, you need to understand what forces are at play in the wider economy - and that means more than just knowing the current cash rate.

Blogger: Andrew Crossley, Australian Property Advisory Group

I believe Australia is looking to be possibly in a situation of stagflation. Inflation is rising, unemployment is also increasing. It has been suggested that the Reserve Bank of Australia (RBA) may have difficulty deciding what to do with interest rates. I disagree that the RBA will have difficulty demonstrating assertiveness and awareness.

The underlying driver to the recent increase in inflation is the Government itself. They are causing inflationary pressure by charging higher fees for servicing and utilities. Prices for staples have not increased to the extent that the size of increase in inflation may typically suggest.

So basically, this upward move in inflation is not necessarily representing an ascending trend but rather a momentary spike predicated by the Government, not the people.

The Government forcing people to pay more for utilities may have an impact on the buying power of the Australian dollar leading to the cost of imports rising, which means the cost of staples may rise, manufacturing and retail (to name a couple of sectors) will suffer therefore further unemployment will ensue.

Remember one very important point as well. Interest rates are not the be all and end all of investment decision making of investors. It is the availability of money that influences peoples borrowing habits and confidence.

Australia's economy
SPI logo

About the Blogger

Andrew Crossley

Andrew Crossley

Andrew Crossley is a property investment advisor and property advocate and the founder of Australian Property Advisory Group, specialising in representing the buyer not the seller. He is also the author of the #1 International Amazon Best Seller ‘Property Investing Made Simple’ comprising of the 7 key tips to reducing property investment risk and create real wealth. (Busybird Publishing, $24.95). For more information visit www.australianpropertyadvisorygroup.com.au

 

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%