Damn Interest Rates!
Have been talking to a lot of people about the investment property. Coz I'm planning to retire at 35 and be a millionaire and decrease poverty!
And then this... The Reserve Bank of Australia annouced that it has lifted its cash target rate by a quarter of one percent. This makes it the sixth increase in interest rates over the past 48 months. Surely, even the most optimistic observer would now acknowledge that a new trend has been established. Naturally, banks and lenders will quickly pass on this rate increase in the form of higher existing variable loans, and new fixed loans. There will also be increases in personal loans, including credit cards too. It's not all bad news though. Change leads to change, which is why there will be opportunities for buyers who have access to cash. My suggestion would be to wait a month or until it settles, and then wait to see how the property market is looking. There is a time to buy, and time to hold, and a time to sell. I guess there is also a time to wait. Don't be anxious or in a hurry, instead reassess your strategy in the light of this current change.
And then this... The Reserve Bank of Australia annouced that it has lifted its cash target rate by a quarter of one percent. This makes it the sixth increase in interest rates over the past 48 months. Surely, even the most optimistic observer would now acknowledge that a new trend has been established. Naturally, banks and lenders will quickly pass on this rate increase in the form of higher existing variable loans, and new fixed loans. There will also be increases in personal loans, including credit cards too. It's not all bad news though. Change leads to change, which is why there will be opportunities for buyers who have access to cash. My suggestion would be to wait a month or until it settles, and then wait to see how the property market is looking. There is a time to buy, and time to hold, and a time to sell. I guess there is also a time to wait. Don't be anxious or in a hurry, instead reassess your strategy in the light of this current change.
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