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Finance Tip of the Week with Stephen Dullens

By Rachael Vrana

There has been lots of talk in the media over the last few weeks and months around both the Australian economy and property market. This seems to be a story of contrasts – the economy slowing down with talk of the property market being too hot, especially in Melbourne and Sydney.

The federal treasurer, Joe Hockey, will unveil the federal budget for the coming four years on 13 May. The general consensus is that this will be a tough budget, with the federal government to soon release it’s report from the commission of audit, searching for savings in government spending.

It is also widely tipped that the Reserve Bank of New Zealand will raise official interest rates this week, for the second time in the last few months. Most economists feel Australia has reached their low point in rates, with the Reserve Bank of Australia’s next move in the upwards direction.  

The key questions over the next few weeks and months: When are interest rates set to rise? What is the outlook in the budget over the coming four years? Where will the government target their spending cuts?  

We’ll keep you updated on all property and real estate specific news as we learn more.

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