[NEW VIDEO]: Australian Banks Prepare To Slash Interest Rates! What This Means For Property Investors in 2025

Dear Fellow Property Investor,

A Reserve Bank rate cut on 20 May appears locked in as new data shows the key measure of underlying inflation has dropped below 3% for the first time in three years. 

Headline inflation – which includes the impact of government cost-of-living policies such as rebates – held steady at 2.4% in the year to March, the Australian Bureau of Statistics figures show. 

Crucially, the RBA’s preferred gauge – the trimmed mean rate of inflation – fell from 3.3% in the year to December to 2.9% in March. 

Jim Chalmers told a Wednesday press conference the latest figures were “a powerful demonstration of the progress that Australians have made together in the economy”.

With an eye to Saturday’s election, the treasurer highlighted that “the market is expecting somewhere between four and five additional interest rate cuts this year, and if that eventuated that would deliver hundreds of dollars every month to Australians with a mortgage”. 

“I’m not making a prediction about that, but the market has a very firm view that there are more interest rate cuts on the way, and I don’t see anything in these numbers that would substantially alter their expectations,” Chalmers said. 

The RBA in February cut rates for the first time in four years, and there is a firm consensus among economists and investors that the central bank’s monetary policy board will lower the cash rate from 4.1% to 3.85% at the next two-day meeting on 19-20 May. 

The Australian Bureau of Statistics (ABS) said a 3.2% annual increase in the cost of food and non-alcoholic beverages (essentially supermarket items) was a main contributor to overall inflation in the year to March, alongside a 6.5% rise in alcohol and tobacco prices. 

Housing costs are still a major driver of inflation, the data shows. 

Average rental costs were up 5.5% on a year earlier, even if the trend was favourable: they climbed 6.4% in the year to December and were rising by nearly 8% this time in 2024.

Dear Fellow Property Investor,

New figures show inflation has slowed to a two-year low of 4.3% leading many to speculate there will be no need for further interest rate rises.

Australian Bureau of Statistics figures for November, show inflation is down from 4.9% in October. This is down from a peak of 8.4% in December 2022.

The Commonwealth Bank is tipping a drop in interest rates of nearly 1 percentage point by the second half of 2024.

CBA chief economist Stephen Halmarick, believes cuts will start in September 2024, dropping rates to 3.6%. He also predicts a further 75 basis point drop in 2025 when inflation sits within the Reserve Bank of Australia’s target of 2% to 3%. This, he says, will bring the cash rate back to 2.85%.

This is excellent news for all property investors as blue-chip inner-city properties located in desirable suburbs will become cash-flow neutral, and in some instances positive!

This aspect of cash-flow positive blue-chip properties will be further accelerated by the current unprecedented increases in rental yields in ‘Key Suburbs’ around Melbourne and Sydney.Imagine, buying a townhouse in Carlton, Yaraville, or St. Kilda and its cash-flow positive from Day 1!

But you have to have the specialised skills and understanding in order to unearth these rare gems?

Let me ask you something…

Do you have a game plan for 2024? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which in my opinion by the way has already bottomed out in November 2022). 

Or will you join them? 

So, what are you waiting for? 

Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!