- Posted by: Nick Lucey
- Category: ASX 200, Economics, Financial Planning, Purchasing Property
July 2018 Update
- RBA kept rates on hold at 1.5% at its meeting this month.
- GDP Growth has averaged 2.5% over the last 5 years, which is slightly below estimates.
- Forecasts for GDP growth remain slightly above 3%.
- dwelling investment has gone from making a positive contribution to growth two years ago to being roughly flat over the year to March.
- Dwelling investment is not expected to remain at a high level.
- Lower fertility rates and therefore population growth has slowed in some regions, which has led to a slowing in demand for property.
- Higher commodity prices have provided higher income for the nation.
- Employment rates have been strong but wage growth has been weak.
- House prices have been relatively stable across capital cities over the last 6 months with strict borrowing requirements have made it difficult for people to take out loans.
- The ASX200 has increased from an opening of 6,194 at the beginning of the month to close the month 86 points higher at 6,280 (increase of 1.3% for the month).
Nick Lucey BAppEc (financial planning)
Director | Financial Adviser
Nest Advisory Group