June 2019 - Bongiorno Financial Update

What's in this issue?

• The combination of the removal of the threat to property tax concessions, earlier interest rate cuts, financial help for first home buyers and APRA relaxing its 7% interest rate test points to house prices bottoming earlier and higher than we have been expecting.

• As a result, we now expect capital city average house prices to have a top to bottom fall of 12% (of which they have already done 10%) rather than 15% and to bottom later this year.

• However, given still high house prices and poor affordability, still very high debt levels, tighter lending standards and rising unemployment a quick return to boom time conditions is most unlikely.

We hope you enjoy this issue.

Kind regards,

ANTOINETTE BONGIORNO 
LL.B. B.Com. CFP DipFP A.S.A. Cert IV. FMB.

Level 2 
431 St Kilda Road 
Melbourne VIC 3004 
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