As soon as the CPI data was released the Aussie dollar dropped like a stone as did the long-term bond rates. With the market now pricing in a rate cut by Feb. And some economists not ruling out a cut this November.

On the flip side. According to Core Logic Brisbane’s median house price rose 1.1% to $873,987 in July and is now up 16% from this time last year.

If it maintains 1.1% a month then next month it will be $882,000 and in 12 months’ time it will be $986,000.

Or to think of it another way the house that you are looking at today which you think is overpriced is going up in value by $300 - $500 a day. Unless you can save faster than that you are going backwards everyday you delay.

This is all happening while rates have been at their peak.

If rates start coming down, this boosts everyone’s borrowing capacity.

Each 0.25% cut increases the average persons borrowing capacity by $20,000 - $30,000. So, if we get 3-4 rate cuts everyone is going to have an extra $100,000 to spend.

Note - some lenders have already quietly been cutting rates.

Based on the markets thinking this suggests there is maybe a 4-6 month window before you will be competing with a wave of new buyers with bumped up purchasing power.
 

If you are looking for ways to maximise your purchasing power now so you beat the wave then you can either:

1) Book a call with me for a Free Maximiser session  Click here to go straight to my calendar to make a time; or

2) Get started today with a Finance Review.  Click here to get started