AUSTRALIA is set to experience the slowest economic growth in seven years which would make the case for a 50 basis point interest rate cut in September, a survey shows.

The Reserve Bank left interest rates on hold at 7.25 per cent in August for the fifth consecutive month.

There is a widespread speculation that the RBA will make the move to cut rates by 50 basis point instead of two consecutive cuts of 25 basis points each.

The irony is that property investors are shunning away from the property market and rents are set to climb. Given the inflation levels and high costs of living coupled with the highest interest rate in last 12 years, housing affordability is not going to get any better. Property investors should see a healthy rise in rents with their investment properties over the next 12-18 months as more would-be investors are sitting on the fence, adopting a wait and see attitude.

See beyond what the masses see and sometimes you will see great opportunities come your way.

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