Interest Rates - What Are They Thinking?
The Reserve Bank of Australia (RBA) recently announced they’d once again be maintaining record low interest rates, maintaining their current policy in the face of concerns over sluggish national economic growth. But while the country continues to argue, what does this mean for you?
CoreLogic (a property data firm) and ABC News recently reported
on a year-on-year 18.9% rise in property prices in Sydney, with Melbourne showing a 15.9% growth, and Canberra and Hobart also showing rapidly rising property prices.
After a lot of debate, experts are now saying this is a housing bubble, with the fear being that it may burst, leading to economic troubles and falling house prices. The RBA is therefore unwilling to raise the interest rate in case this negatively affects the housing market.
What About Me?
The best case scenario is for property prices in Sydney and Melbourne to gradually come under control, with the Australian Prudential Regulation Authority (APRA) implementing some loan restrictions to try to relax the market.
Fortunately, Brisbane has shown more sustainable growth of just 4.6% in the past year, and so is less likely to be affected.
What Can I Do?
With Domain reporting
that most of the oversupply of property is largely centred in metropolitan areas, now is the time to look at suburban living. The less crowded market may lower the chances of being affected by market fluctuations, and you can speak with any of our agents to see what properties are available in our South Brisbane area.
Of course, national financial policy can all seem a bit overwhelming, so if you want to get back to the personal level, talk to our financial consultants at Better Brisbane Home Loans
today to get advice tailored to your needs.