What does the interest rate rise mean to you and the WA property market?
Donna Gordin
Director Perth Strata Co. | Community Volunteer | Candidate - The Nationals WA for Bateman | Authorised by J. Kirby, The Nationals WA, Level 1 43 Ventnor Ave, West Perth WA 6005
Just my thoughts.... so, lets put this into perspective.
Prior to the pandemic, the Cash Rate was .75%, since then we have 3 reductions in the cash rate, being
-?????????4/3/20,
-?????????20/3/20,
-?????????4/11/20, this bought the cash rate to .1%,
With the increase in May 2022 and the Reserve Banks, June 2022 0.5% increase, we are only .1% more than we were 27 months ago.??While it is true the cost of living has increased with fuel and energy.?There may need to be a reallocation of the family budget.??The interest rate we were all qualified for in the past couple of years is just a fraction higher than it was.
Since 6 October 2021, Banks have been required to assess ability to borrow at 3% above the loan product interest rate.
In short, there is a big buffer in the affordability of most borrowers unless their circumstances have changed elsewhere since qualifying for a home loan.
Why does the media want to talk down the economy on the back of a modest interest rate rise? Why does the new Government want to shift blame to the previous Government, but in the meantime, talk down the economy.?You need to be careful this does not become a self-fulfilling prophecy. ??
The reality is, here in WA stock levels are still low and below a normal market.?Confidence has been high, and rightfully so, the lowest unemployment in the country, we have plenty of work, low vacancy in rentals and low available stock for sale.?This has not changed; you do not want to damage consumer confidence unnecessarily.?
Commercial Sales & Leasing Executive in the Southwest of WA
2 年Exactly right Donna …
Property Management Leader. Ray White WA. Improving Investor Relationships. Encouraging Passionate Property Managers. Licensed Real Estate Agent.
2 年Great piece! Thank you!
Managing Director & Principal Advisor, Prosperity Wealth Management (MAICD),(FGIA), (AMICDA).
2 年Very sage asessment Donna you are spot on blaming the former government is a sign of things to come
Director @ Pearl Property Co. Perth Property Management expert
2 年Well said Donna.
Award winning Financial Advisor and Managing Director at Merideon Wealth Strategies
2 年Well said Donna. Also likely a lot of east cost investors will shift their investing to WA. But that doesn't sell newspapers or win votes!