The Reserve Bank have decided to leave rates on hold this month, however they have given the strongest indication that they may consider moving rates downward soon. Many economic forecasters are also predicting a drop in interest rates in the coming months. It is starting to look like we have reached the peak of this cycle. Let's hope this is the case and rates drop soon.

You would have also noticed that there has been no shortage of doom and gloom in the media regarding the state of the property market. Most investors however, view property as part of a long-term investment strategy. Even many young investors view their properties as part of their nest egg. So the short-term ups and downs of the property market should be of no concern. I always say "When everyone is running for the hills, it's time to be accumulating property".

In Perth, a strong economic environment continues to maintain house prices. Prices have increased by 3.8 per cent in the March quarter according to Residex despite the fact that prices were expected to decline following phenomenal growth in recent years. Employment opportunities in Western Australia have seen an increase in population of around 40,000 per annum and a lack of supply in the rental market has seen demand for rental properties remain firm. This is great news for property investors.

Till next month, keep well and if any of your friends or family need help with education or finance, feel free to call me anytime.