Interesting about the RBA announcement.
I noticed St George has already posted they are passing on the full 0.25% on May 23rd …..of course it puts us back in to the same situation that we were a few months ago when they raised off-market the rates by 0.25%….chuckles.
But I am surprised the RBA moved….makes me more concerned than I was, living remotely its hard to judge the market and I assumed they were going to be keeping “Steady”. Makes me also wonder if Chinese stimulus has dropped off more than I thought it would and the RBA blinked to keep things pumped up.
Do you think that the rate drop might spook market more than help?
is it possible that people will get worried about whats wrong with the economy and finally work out they are overpaying for property?
Will be interesting to see if Sydneys clearance rate goes up next weekend….
I doubt it will hold people off buying .Human nature is a funny thing,when things appear rosey ,we keep going hard,until the downturn has fully come ,then people start selling and/or putting the brakes on -then its often too late .
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Article along similar lines here dealing with The Fed – http://www.focus262.com/blog/2016/05/fed-thinks-i-should-be-spending-more-so-why-am-i-saving/
I’m doing fie with rents covering interest at the moment but am concerned that rents wont cover any upside over the next few years that will come eventually well before I can pay down enough to make up for the higher asking prices being driven by low rates and careless competition from other buyers.
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