RBA Keeps February's Rates at 0.10%

The Reserve Bank of Australia’s first meeting in 2021 with the minutes found >here has seen no change to the rate for February. Australia appears to be holding up quite well while the RBA recognises the country is still in recovery mode.

A further $100BN worth of government bonds has been purchased by the RBA to continue its quantitive support plan through a pandemic with no end in sight. While economies rallied in 2020 following the news a vaccine might be the answer to the world’s problems, a completely stable Australian economy minus the government stimulus of Jobkeeper, Jobseeker and bank mortgage holidays appears to still be some way off.

Banks are virtually giving away money, though they manage to reap the benefits from the perfect pandemic storm we're all in. Reports are emerging of the big banks making up to $4M a day in interest having not passed on the RBA’s full rate cuts in November; almost $100M since the RBA began its first sets of rate cuts in March.

On the economy side of things, the stock market is also surging - likely due to mums and dads keen to make their money work given bank rates are so low. But if we look to history, we’ll observe the surge in stocks precipitates an incredible fall, with only the big guys left standing to reap the rewards. However the latest GameStop-Wall Street debacle which you can read >here might be proof the power of the people will always have its day.

The heightened stock, bitcoin and real estate markets are incredibly strong, buoyed only by news and speculation. Just one round of bad news is all it takes to make the markets to fall. All figures indicate there is nothing to show why the figures are high – it simply is, and the danger is in how long this will last before smart people start taking their wins or cutting their losses before the rest of the market abandons crypto, stocks and property in droves.

With rates at record lows, “bank shopping” is definitely on the up, particularly stimulating property owners where the real estate market is on fire to invigorate home building and gardens. There’s a high volume in sales and rentals, especially with a surge in properties with pools, while cities are emptied in droves as people seek a lifestyle change. Remote offices are the new normal, and the staycation lifestyle now a revolution. With international travel still quite some time away, property owners are turning their homes into the resort lifestyle, investing money into pools and gardens

If you’re thinking of selling, sell now while the market is good - or prepare for a longer term hold for stronger gains once the market cor rects itself. Now is the era for a lifestyle revolution, so start loving your home life. There are certainly big profits to be made with above market prices and a lot of suburb records being reached at the moment. This is the time to make a quick sale – the high absorption rate means buyers are buying properties as soon they become available.

As banks give away money, an investment in upgrading gardens and pools for the ultimate resort style of living - leading to its very own special problems in compliance. So watch this space - because as always, we've got the pool safety solutions

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