OCR at new record low of 2.00%

Reserve Bank Governor Graeme Wheeler today reduced the Official Cash Rate by 25bps to 2.00 percent.
With the dollar jumping (rather than falling) after the announcement, it is clear the market expected a surprise 50bp drop.

He cited his main reasons as:

  • Global growth is below trend.
  • Long-term interest rates are at record lows.
  • The high exchange rate is adding further pressure to the export and import-competing sectors. 
  • A decline in the exchange rate is needed.

On the near future:

Investment Property: Yield or Capital Gain?

Our partners over at Westpac have put together a handy little interactive tool they are calling the "Westpac Property Investor Report", but we think that doesn't do it justice.

Sure it's a report, but it has a cool little interactive tool that you can play with and see how much rent you should be charging and how much your property's value is increasing by each year.

This will be useful if you have an investment property and really useful if you are looking at buying one.