News & Updates The Rate-Cut Tax-Cut Combo

11/07/2019by simplyframe

Another month and yet another RBA rate cut. In addition to the rate cut the government has also announced a tax cut applicable for most income earners.

The collective endeavours from the government and RBA are meant to stimulate the Australian economy. Home owners are by default benefitting from the increasing amount of rate cuts, as the effects of mortgage savings are immediately apparent and felt.

The government is encouraging income earners benefitting from the extra tax cuts to spend their extra amounts in a collective effort to boost the economy. As a home-owner it is a no-brainer to engage in some home improvement exercises as this will boost both the economy and home valuations in the long run.

As we venture into a six-year high in loss-making sales for properties in major cities such as Melbourne and Sydney, things do not look bright for ones considering to off-load their homes. Up to a third of properties in some areas of the 2 major cities are being sold at a loss, as things look increasingly grim in the short-medium term.

Whether you are a home owner or someone seeking to buy in this buyer’s market, be savvy with the extra dollars in your bank account as we enter the shaky and recession-prone economy.