1 00:00:00,360 --> 00:00:03,120 Speaker 1: Je Jersey and Amanda gam. 2 00:00:02,960 --> 00:00:07,080 Speaker 2: Nation homeowners are breathing aside relief. The Reserve Bank has 3 00:00:07,120 --> 00:00:10,000 Speaker 2: cut interest rates by ero point two five percentage points. 4 00:00:10,119 --> 00:00:13,200 Speaker 2: It's now three point six percent. We're joined now by 5 00:00:13,200 --> 00:00:15,880 Speaker 2: the founder of fort Lake Asset Management. He also happens 6 00:00:15,880 --> 00:00:18,640 Speaker 2: to be one of Australia's leading economists, doctor Christian Balis, 7 00:00:18,760 --> 00:00:22,120 Speaker 2: Christian high. 8 00:00:20,720 --> 00:00:22,600 Speaker 1: Hi Jonesie Himander. How are you going you well? 9 00:00:22,760 --> 00:00:26,119 Speaker 3: Is it jet skis for everyone? No? 10 00:00:26,800 --> 00:00:29,520 Speaker 1: I don't think so, but it's it's a modest saving, 11 00:00:30,040 --> 00:00:32,639 Speaker 1: but could be a big saving for the average homeowner 12 00:00:32,680 --> 00:00:35,280 Speaker 1: because the average mortgage is about six hundred and sixty 13 00:00:35,280 --> 00:00:37,840 Speaker 1: odd thousand years one hundred and thirty bucks a month. 14 00:00:37,920 --> 00:00:41,120 Speaker 1: It's pretty good. But the big thing that we need 15 00:00:41,159 --> 00:00:42,920 Speaker 1: to focus on is there could be another two or 16 00:00:42,920 --> 00:00:45,160 Speaker 1: three more to come, and that's what I think people 17 00:00:45,159 --> 00:00:47,000 Speaker 1: could get a little bit more excited about, and then 18 00:00:47,000 --> 00:00:48,600 Speaker 1: maybe the jet skis can come out after that. 19 00:00:48,840 --> 00:00:49,880 Speaker 2: So it's all good news. 20 00:00:51,479 --> 00:00:53,720 Speaker 1: No, it's not all good news. That's the ironic thing 21 00:00:53,720 --> 00:00:55,880 Speaker 1: about these things. It's a bit of a paradox because 22 00:00:56,280 --> 00:00:58,800 Speaker 1: when they're cutting interest rates implicitly, what it means or 23 00:00:58,840 --> 00:01:00,840 Speaker 1: explicitly I should say, is that means other things in 24 00:01:00,880 --> 00:01:04,160 Speaker 1: the economy are starting to stall a little bit, particularly 25 00:01:04,240 --> 00:01:07,200 Speaker 1: consumption and these sorts of things. They're economic geeky terms, 26 00:01:07,280 --> 00:01:10,280 Speaker 1: but what that basically means is people are starting to 27 00:01:10,360 --> 00:01:14,880 Speaker 1: squirtle away money and save again. They're real incomes aren't 28 00:01:14,880 --> 00:01:16,920 Speaker 1: at a sufficiently high level for them to feel like 29 00:01:16,959 --> 00:01:18,520 Speaker 1: they can go out and splash out on the jet 30 00:01:18,560 --> 00:01:20,960 Speaker 1: skis and these sorts of things, And so the RBA 31 00:01:21,040 --> 00:01:22,960 Speaker 1: is getting a little bit worried and they just want 32 00:01:23,000 --> 00:01:25,080 Speaker 1: to provide a little bit more accommodation, put a few 33 00:01:25,080 --> 00:01:28,120 Speaker 1: more foundations under the bricks there and make sure that 34 00:01:28,120 --> 00:01:30,880 Speaker 1: everyone feels a little bit more comfortable. But the promise 35 00:01:31,000 --> 00:01:33,399 Speaker 1: is I think that they're going to be doing more, 36 00:01:33,440 --> 00:01:35,880 Speaker 1: so there is good news to come. Yeah. 37 00:01:36,040 --> 00:01:37,760 Speaker 3: So is this the right time to buy a house 38 00:01:37,959 --> 00:01:38,479 Speaker 3: right now? 39 00:01:39,680 --> 00:01:41,920 Speaker 1: Well, look, it depends where you are, obviously. I Mean. 40 00:01:42,080 --> 00:01:44,000 Speaker 1: The thing that always amazes me about Australia when I 41 00:01:44,080 --> 00:01:46,040 Speaker 1: sit on a plane and I frive from Perth to Sydney, 42 00:01:46,440 --> 00:01:48,120 Speaker 1: I look out the window and it's only for about 43 00:01:48,120 --> 00:01:52,240 Speaker 1: five minutes that I see incumbered land with buildings and 44 00:01:52,280 --> 00:01:54,600 Speaker 1: these sorts of things. Australia has a huge block of 45 00:01:54,680 --> 00:01:58,639 Speaker 1: land with not a lot built on it. And obviously 46 00:01:58,680 --> 00:02:01,600 Speaker 1: the biggest issue is supply. The government's trying to do 47 00:02:01,680 --> 00:02:03,880 Speaker 1: things to basically prop up supply and do those sorts 48 00:02:03,880 --> 00:02:07,360 Speaker 1: of things to bring home prices down, but really what 49 00:02:07,400 --> 00:02:11,639 Speaker 1: it will help with definitely, houses are an interest rate 50 00:02:11,720 --> 00:02:14,120 Speaker 1: sensitive thing. The one thing we have to remember in 51 00:02:14,120 --> 00:02:16,119 Speaker 1: Australia when you go and buy a house, people don't 52 00:02:16,120 --> 00:02:19,280 Speaker 1: pull out a calculator and start doing valuation models and 53 00:02:19,320 --> 00:02:21,360 Speaker 1: these sorts of things. They basically say, what is it 54 00:02:21,400 --> 00:02:23,720 Speaker 1: that I can afford? How much am I earning? What 55 00:02:23,760 --> 00:02:27,359 Speaker 1: are my expenses per week, per month? And to that extent, 56 00:02:27,440 --> 00:02:29,560 Speaker 1: interest rate's coming down actually does help people a lot, 57 00:02:29,600 --> 00:02:32,880 Speaker 1: so it will support the property market. It probably does 58 00:02:32,960 --> 00:02:35,480 Speaker 1: mean that property is becoming more attractive as interest rates 59 00:02:35,480 --> 00:02:37,640 Speaker 1: go lower. So that's the long answer to your question. 60 00:02:37,960 --> 00:02:39,600 Speaker 2: And is it a good time to refinance? 61 00:02:40,840 --> 00:02:44,519 Speaker 1: Absolutely. I always say get out there, push hard, make 62 00:02:44,560 --> 00:02:47,560 Speaker 1: sure you're going on to some of these compare the 63 00:02:47,560 --> 00:02:52,359 Speaker 1: market type internet sites that are allowing you to check 64 00:02:52,400 --> 00:02:53,760 Speaker 1: what else is out there. There is a hell of 65 00:02:53,800 --> 00:02:56,480 Speaker 1: a lot of options out there. Don't feel like you're trapped. 66 00:02:57,320 --> 00:02:59,160 Speaker 1: That is the best way to get more bang for 67 00:02:59,240 --> 00:03:01,360 Speaker 1: your buck. You can end up getting much more than 68 00:03:01,360 --> 00:03:04,320 Speaker 1: the zero point two to five, So certainly shop around. 69 00:03:04,440 --> 00:03:07,000 Speaker 1: It's a much more competitive market and a free flowing market. 70 00:03:07,000 --> 00:03:08,760 Speaker 1: It used to be much harder to change your mortgage, 71 00:03:08,760 --> 00:03:11,240 Speaker 1: going back a decade or so ago, they've made it 72 00:03:11,280 --> 00:03:13,440 Speaker 1: a lot easier. Definitely get out shop around because you 73 00:03:13,480 --> 00:03:14,160 Speaker 1: will be surprised. 74 00:03:14,200 --> 00:03:15,840 Speaker 3: And it's funny that I was in the bank, just 75 00:03:15,880 --> 00:03:18,840 Speaker 3: doing unrelated bank business with a new card and the 76 00:03:18,919 --> 00:03:21,280 Speaker 3: dude's just out the little concierge. Then he says, anything 77 00:03:21,320 --> 00:03:22,440 Speaker 3: else going to help you with us? Said where you 78 00:03:22,440 --> 00:03:25,040 Speaker 3: can lower the interest rate as a joke, Yeah, radio, 79 00:03:25,320 --> 00:03:29,840 Speaker 3: and he just did it. So yeah, I thought, okay, 80 00:03:30,240 --> 00:03:31,520 Speaker 3: so you can just ask that. 81 00:03:32,680 --> 00:03:35,280 Speaker 1: Yeah you can. You just ask, and you know not. 82 00:03:35,360 --> 00:03:37,360 Speaker 1: The worst thing to do is, once you've shopped around, 83 00:03:37,360 --> 00:03:38,960 Speaker 1: go back to your bank and say, hey, look, a 84 00:03:38,960 --> 00:03:41,000 Speaker 1: lot of these banks are offering me this. You know, 85 00:03:41,080 --> 00:03:43,000 Speaker 1: can you match it or can you better? And you'll 86 00:03:43,040 --> 00:03:44,960 Speaker 1: be pleasantly surprised. All of the time. Banks don't like 87 00:03:45,040 --> 00:03:47,520 Speaker 1: to lose business. It's a competitive world out there, and 88 00:03:47,560 --> 00:03:50,920 Speaker 1: it costs a lot more to acquire a customer than 89 00:03:50,960 --> 00:03:53,120 Speaker 1: it does to keep one. So definitely utilize that to 90 00:03:53,120 --> 00:03:53,680 Speaker 1: your advantage. 91 00:03:53,800 --> 00:03:56,440 Speaker 2: Good advice. Thanks good Christian, Christian, thank you very much, 92 00:03:56,480 --> 00:03:58,240 Speaker 2: doctor Christian Batis, thank you for joining us. 93 00:03:59,080 --> 00:04:00,480 Speaker 1: Thanks guys much, press out a chance 94 00:04:00,600 --> 00:04:02,839 Speaker 3: Always room on our jet ski for you Christians.