While RBA Holds Fast an Independent Rate Rise is Visible on the Horizon

Shhhhhh, if you sit very quietly and stare at the horizon you can see an independent rate rise peaking out behind those trees over there. We kid you not. But how do we know? The closing paragraph of last month’s RBA Minutes contained a surprise – “It was more likely that the next move in the cash rate would be up rather than down” – or could it have been viewed as an indication of what’s to come? Regardless, of which way you take the statement, the fact it was said and that Australian lenders are suggesting they will raise rates if the RBA won’t, should be enough for you to question if fixing your home loan is a good option.

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Thinking about Property Investment?

MYTHS & FACTS / INVESTMENT PROPERTY LOANS

Despite all the talk, rumors and regulatory pressures on Lenders, Investment Property Loans are still available. The structure, parameters and Lenders appetites may have changed in the last two years, however these loans are still a viable proposition.

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How has the housing market effected the RBA’s decision this month?

Read the full commentary by clicking on the link.

RBA March Announcement

Autumn’s Cooling Housing Market Sees RBA Wrap March Rates

How has the housing market effected the RBA’s decision this month? Don’t wait a minute longer, find out now to see if you could save more on your home loan.

 

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RBA Rate Brake Stuck Between Wage Growth and the Slowing Housing Market

With poor wage growth comes less household revenue and declining savings, all factors of concern for the RBA. Thus, they have their foot firmly on the rated brake this month, until they have greater economic certainty.

What’s the deal? In late 2017, Australian wage growth remained to stagnate even though employment rose, along with the minimum wage. But, despite this, wage growth has been lower since the end of the mining boom. This decline coupled with a slowing property market, which is expected to fall even further, may result in a decline in household consumption. As a result, economic growth will dwindle.

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Will the RBA rise the cash rate in 2018?

For the past seven years, the Reserve Bank of Australia (RBA) has either left interest rates alone or decreased the rates. At their recent meeting in November 2017, they announced that the cash rate would continue to remain steady at 1.5%, so as the old saying goes – no news is good news!

Some people in the industry however, are predicting that this steady state will change during 2018, resulting in a slow accumulating increase in the cash rate. This of course, will depend on the Australian economy and whether the RBA believes that there is enough stimulus to carry one or more hikes to the cash rate over the next 12 months.

 

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Rate Rises Look Set to Hit in 2018

 

It’s now been 83 months since a rate rise in Australia. But, economists suggest that this will change in 2018. Looking to keep inflation low and stable, the Reserve is likely to leave rates on hold until mid-2018 to add stability to the housing market.

While the RBA left rates on hold yet again, they are signaling record lows are about to end.  Read Full Commentary  from RBA. However, with low rates pushing housing prices and Australian debt levels higher, rate rises are expected to be gradual. Why? Well, the RBA doesn’t want to cause rate shock.

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Housing Market Conditions Vary Across the Country as Rates Stay on Hold

The Reserve Bank have left rates on hold for the tenth consecutive month as the economy adjusts to changes.
Many housing market factors prompted the Reserve Bank of Australia to leave rates on hold. These included lenders increasing investor and interest-only mortgage rates. Along with the Budget announcement of a $6.2 billion bank levy. Several lenders even suggest that this lender tax hike will pass onto consumers. Consequently, these factors will result in a household spending decline, and the tightening of the housing market with less buying.

Read RBA Commentary 

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https://www.connectfinanceqld.com.au/connect-finance-qld/

Your Guide to Buying & Selling Property

Buying and selling property can be challenging, even if you have bought and sold a home before. This is because the real estate market is constantly changing, and can be hard to keep up with! Changes in interest rates, unemployment and rises in the cost of living are all factors that can affect the buying and selling property market. [Read more…]