Pizza and Property

Weekly Slice 246: August 2025 Interest Rate Cut! - with Morgan Bushell & Todd Sloan

8 snips
Aug 12, 2025
Guest
Morgan Bushell
In this engaging discussion, Morgan Bushell, Director of Full Circle Finance and mortgage broker, teams up with Todd Sloan to unpack the recent interest rate cuts in Australia. They delve into how these changes can boost borrowing power and offer significant savings for property investors. The duo draws comparisons between today’s market and past trends, stressing the importance of early investment. They also highlight the balance between cash flow and long-term capital growth, encouraging listeners to remain strategic in their investment choices.
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INSIGHT

Small Cuts Add Up

  • Small interest rate cuts add up to meaningful monthly savings for investors, especially on larger loans.
  • Morgan shows 10bp ≈ $41/month on $500k and 50bp ≈ $208/month, demonstrating cumulative impact.
ANECDOTE

Logan Comparison For Early Adopters

  • Morgan compares today's opportunities to the Logan/Ipswich cycle where early investors suffered years of stagnation before strong gains.
  • He warns sentiment flips slowly and early adopters capture most upside later.
INSIGHT

Jaws Effect: Rates Down, Rents Up

  • Small changes in both interest rates and rents can turn large negatives into near-neutral cashflow.
  • Example: dropping rate from 6% to 5% plus $100/week rent lifts a -$237/wk deficit to -$44/wk.
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