Facebook Twitter: @NeosKosmos Instagram Q: Mark you seemed to be right last week, ABS showed less then expected inflation and the Reserve Bank did not lift rates – but many media commentators are still predicting a rise in interest rates over the next 6 months – what’s your view? Can we expect interest rises? Most economists now appear to think rates will be on hold in August with the economic numbers released over the coming months determining whether rates do indeed move up or stay on hold in the medium term. Mark from Oakleigh, VIC Thanks for the feedback Mark, the latest Consumer Price Index numbers released during the week did come in lower than most people had forecast. The underlying CPI now sits in the Reserve Bank of Australia’s preferred range of 2-3 per cent which will certainly help when the Reserve Bank meets next week to decide whether the official cash rate should go up or stay where it is. Most economists now appear to think rates will be on hold in August with the economic numbers released over the coming months determining whether rates do indeed move up or stay on hold in the medium term. As I mentioned in my last article I am certainly of the view that rates should stay on hold.Q: Hi Mark, I love the column, you said we need to be looking beyond housing as an investment, but as Greeks we seem to be doing pretty well in housing are you expecting the bubble to burst? Michael from Adelaide, SAHi Michael, firstly, thanks for the great feedback and I can certainly understand the passion you have for property. There is nothing wrong with being involved in housing development and indeed many people have done very well out of it. From a lender’s perspective however we have seen a tightening in the credit criteria that a lot of the major lenders use to asses development finance over the last couple of years. Given this I believe the housing market is in reasonable shape. From an investment perspective though the benefits of diversification are very important. By having investments in a range of assets you have some protection from any corrections that may occur in any one asset class. Talking to your local financial planner may help in giving you some options to think about but ultimately though it will still come down to what you are comfortable with.Q: Mark, I’m a 48 year old professional in welfare and arts – kudos but no money – I entered the housing market late. I don’t have much super, what should I do, invest in a property for my retirement, or pump my super till I am 60? Frank from Preston, VICHi Frank, investing in super or property is often a question that I get asked with the answer being there is never a hard and fast rule. Certainly, there are many benefits of investing to build your super such as the tax concessions of investing inside super rather that outside of it. Investing in super will also allow you to diversify your investments away from the one asset class of pure property. However, in saying all that, many people still love the fact that they can always touch and feel direct property rather than investing in a diversified range of assets such as cash, fixed interest and shares that most super funds tend to do. Either way the best place to start is getting some good advice from your local advisor. They will be able to talk you and your wife your to understand your goals before working with you to advise you on a strategy that will help you achieve these.Any questions readers may have for Mark please email [email protected] Mark Bouris is the Executive Chairman of Yellow Brick Road, a financial services company offering home loans, financial planning, accounting & tax and insurance. Email Mark on [email protected] or check www.ybr.com.au for your nearest branch.