I am gathering information to make my first investment in property and although one doesn’t want to procrastinate in making a purchasing decison – would it be a wiser financial proposition to wait and deal with higher interest rates instead of the inflated purchase prices in the sellers market of today?
Hi Lamotte,I’m not that smart but it seems to me if you can afford to do it in the present climate where you know all the rules,why wait for a supposed situation to occur that we can only guess the rules.We can only play each game as it happens.Worry about the what if’s when they actually happen.Just my 2 cents worth,Mick
Hi Guys thats a tricky one
i’m inclined to think that if you are buying in regional areas you can still buy today if you buy carefully. I think that the market may slow down but i would be surprised if it dropped by a great amount. where are you looking ie what state and capital city or regional.
thegovernmentis looking at housing affordability and the obvious one is people should relocate out of Sydney and Melb if this were to happen the old market could have some more legs. But if you do buy maybe play it safe and fix some of the loan
regards westanWhat is the maximum amount of time in Years a
home loan can be fixed? Most I seen is 10 years.
They say The property boom and Intrest rate will
continue for 2 years and 4 more months or so.
Sydney Morning Herals articleI’m in Perth, and we are certainly not faced with the inflated price of housing as the Eastern States.
As with Tassy, its probably one of the better states to be in for investing. Apparently, you eastern staters are looking over here now!
]Hi Guys
Thinking in NZ at the moment, about interest rate movements, seems to be based around these points:
1. Interest rates still remain volatile. (don’t they always)
2. Floating rates likely to fall further.
3 2-5 yr fixed rates could rise. (they already have-how high they’ll go is anybodies guess)
4. One year rates caught in the middle.
5. Next year an upward across the board interest rate trend is envisaged. (and I know what next week’s Lotto numbers are)Regards
Interest rates in AUS/NZ are very much determined by what is happening in the US and the world economy as a whole. What will happen in the next few years is a bit of a guess but if the banks are willing to fix your interest rate on your mortgage at about 6.5% for 5 years and they are in business to make money they must believe that the pressure on rates is not that great. I cant see a huge change in rates either up or down but in the US the trend is still down or at best static. Until the US economy starts to overheat (which is not likely for some time) there is not much chance of rates rising much. The range I am predicting is 0.5 – 1% over the next couple of years.
Lamotte, if you make provision for rates to move up to 2% in your purchase, there is no good reason why you should not buy now. There seems to be a fair chance that prices are more likely to go flat for a while than they are to drop by any great amount even though the statistical information and economic analysis of the property market does support price corrections.
]
The topic ‘Increase in interest rates’ is closed to new replies.
