{"id":8204,"date":"2016-06-05T10:00:04","date_gmt":"2016-06-05T00:00:04","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=8204"},"modified":"2016-06-05T10:00:04","modified_gmt":"2016-06-05T00:00:04","slug":"some-insight-and-a-warning-from-michael-yardney","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/","title":{"rendered":"Some insight and a warning from Michael Yardney"},"content":{"rendered":"

Lower interest rates, the 2016 Budget and a Federal Election \u2013 what does all that mean for property? \u00a0Michael Yardney<\/strong> gives us an insight and a warning as well.
\n 
\nTranscript<\/strong>
\n 
\nKevin:<\/b>\u00a0 With more and more lower interest rates on the landscape, and of course, the recent budget, what does that mean for property? Michael Yardney from Metropole Property Strategists joins me.
\nGood morning, Michael.
\nMichael:<\/b>\u00a0 Good morning, Kevin.
\nKevin:<\/b>\u00a0 Everyone\u2019s talking about this, aren\u2019t they? What\u2019s going to happen with property? What\u2019s your take on it all, Michael?
\nMichael:<\/b>\u00a0 As we know, recently interest rates have been lowered, and the expectation is that they\u2019re going to be lowered once more, so interest rates may drop another quarter of a percent before the end of this year. Yes, everyone is wondering how is that going to affect property. I believe it\u2019s going to put a floor under our slowing housing markets and it definitely will be welcomed by first-home buyers.
\nBut I think the big factor in people\u2019s minds at the moment is lower consumer confidence \u2013 some uncertainty about an upcoming election. A lot of people are a bit uncertain about their jobs. Interest rates have been lowered because the economy is not doing well. I think these other factors are going to make people just sit on the sidelines for a little bit, Kevin, and they probably won\u2019t jump into property because of the lower interest rates, at least not just yet.
\nKevin:<\/b>\u00a0 Michael, you mentioned there about more rate cuts on the horizon. When will that happen, and what impact are they having on the market?
\nMichael:<\/b>\u00a0 Many economists believe that there will be another round of rate cuts but not until after the election, so probably in August or September. The decision of the Reserve Bank really has taken a number of factors into account: the fact that our housing markets have slowed. APRA seems to be working well in that regard so it doesn\u2019t have to worry too much about the housing markets.
\nIt\u2019s really more worried that our economy is slowing but inflation has almost stalled, which really means that our job growth, wages growth, and economic growth aren\u2019t happening, so they\u2019re trying to encourage it by, I guess, dropping rates more for businesses, who are hopefully then going to feel confident and employ people and buy new equipment. It\u2019s working well in that side.
\nAs for homebuyers, it\u2019s going to allow people to pay off their mortgages a little bit quicker. I don\u2019t think people in these more uncertain times are going to rush off and upgrade their homes or buy bigger houses; what they\u2019re probably going to do is take advantage of the lower rates and get those financial buffers in place.
\nKevin:<\/b>\u00a0 We are actually seeing the banks, too, passing on this recent decrease, aren\u2019t we?
\nMichael:<\/b>\u00a0 It happened much quicker than in the past and to a greater degree, where most of the banks have passed on the full cut \u2013 at present, Kevin. But we know that the banks are being squeezed because of the cost of their funds from overseas. That\u2019s where they get a lot of their money because Australians aren\u2019t putting money into their deposits anymore. That\u2019s how, in the old days, you used to have a savings book and that\u2019s where banks got their money. Now they get a lot of their money overseas, and that\u2019s more expensive.
\nAlso, they\u2019re having to keep more cash on hand because of APRA\u2019s changes, so it\u2019s possible to boost their profits they\u2019re going to do an out-of-cycle rate rise again, like they did last year. That\u2019s definitely on the cards.
\nKevin:<\/b>\u00a0 What are consumers doing with these decreases in interest rates, Michael? Are they actually paying their loans off faster, or are they taking the decrease?
\nMichael:<\/b>\u00a0 What\u2019s happening is they\u2019re paying their loans off faster, in general. They\u2019re getting rid of credit card debt. Most households are in very good shape, but at the end of last year, due to a couple of stimuli from the government and people feeling more confident, consumers started to spend a little bit more, and we\u2019re seeing that household saving is decreasing a bit.
\nThat\u2019s what the government wants. They want us to be encouraged to spend and they\u2019re encouraging businesses to spend because that\u2019s what makes the dollars go around and our economy go around and pay people\u2019s wages. That\u2019s that interesting mix of not taking on too much debt, not overspending and using your house as an ATM but also spending enough to keep people employed.
\nKevin:<\/b>\u00a0 Always good talking to you, Michael Yardney from Metropole Property Strategists. Thanks, Michael.
\nMichael:<\/b>\u00a0 My pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lower interest rates, the 2016 Budget and a Federal Election \u2013 what does all that mean for property? \u00a0Michael Yardney gives us an insight and a warning as well.   Transcript   Kevin:\u00a0 With more and more lower interest rates on the landscape, and of…<\/p>\n","protected":false},"author":176692471,"featured_media":8205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34,11,36,22],"tags":[101],"class_list":["post-8204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-topic","category-kevin-update","category-property-investment-topic","category-research-topic","tag-podcast"],"yoast_head":"\nSome insight and a warning from Michael Yardney - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Some insight and a warning from Michael Yardney - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Lower interest rates, the 2016 Budget and a Federal Election \u2013 what does all that mean for property? \u00a0Michael Yardney gives us an insight and a warning as well.   Transcript   Kevin:\u00a0 With more and more lower interest rates on the landscape, and of...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2016-06-05T00:00:04+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Some insight and a warning from Michael Yardney\",\"datePublished\":\"2016-06-05T00:00:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/\"},\"wordCount\":826,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Finance\",\"Kevin's Update\",\"Property Investment\",\"Research\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/\",\"name\":\"Some insight and a warning from Michael Yardney - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2016-06-05T00:00:04+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/some-insight-and-a-warning-from-michael-yardney\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Some insight and a warning from Michael Yardney\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Some insight and a warning from Michael Yardney - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/","og_locale":"en_US","og_type":"article","og_title":"Some insight and a warning from Michael Yardney - Realty Talk","og_description":"Lower interest rates, the 2016 Budget and a Federal Election \u2013 what does all that mean for property? \u00a0Michael Yardney gives us an insight and a warning as well.   Transcript   Kevin:\u00a0 With more and more lower interest rates on the landscape, and of...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/","og_site_name":"Realty Talk","article_published_time":"2016-06-05T00:00:04+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Some insight and a warning from Michael Yardney","datePublished":"2016-06-05T00:00:04+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/"},"wordCount":826,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Finance","Kevin's Update","Property Investment","Research"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/","name":"Some insight and a warning from Michael Yardney - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#primaryimage"},"thumbnailUrl":"","datePublished":"2016-06-05T00:00:04+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/some-insight-and-a-warning-from-michael-yardney\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Some insight and a warning from Michael Yardney"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/8204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=8204"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/8204\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=8204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=8204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=8204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}