Money Tree

The Budget

The budget was presented just over a week ago and within a couple of days all comments about it have ceased. For those with mortgages or looking to purchase a property, the budget was neutral. The capital gain aspect, imposed on rental properties being sold within a two year period, was really showing the Government was doing something - but how effective it will be, remains to be seen. A comment that appears to be missing, is that slowing the property market, does enable the Reserve Bank to cut wholesale rates. We expect this to happen over the next three months. This will assist those with mortgages, as interest rates will decrease.

OCR Review due Thursday - at this stage doesn't look like we'll see any change. Most economists not predicting any change until at least March 2015.