5 May 2010
What do more rate rises mean for residents of Casula and Liverpool? Coupled with increases in water and electricity, it could certainly put pressure on some people, which is why we need to be conscious of what we’re able to borrow.
This is the sixth interest rate rise over the last 8 months, but we shouldn’t be surprised. The Australian economy from all reports is still one of the strongest in the world currently, so we’re likely to see rates rise as our economy continues to improve.
It is crucial when borrowing money that lenders factor in rate rises over the term of their loan. You can’t expect rates to stay at an all time low forever! That being said, rates aren’t anywhere near what they’ve been in the past, so I think we’re in a relatively good position right now – it could be worse.
It was reported
that “the expectation of a May rate rise had jumped after official data yesterday showed a 20 per cent surge in house prices in the past year” according to the ABS. “Statistics showed house prices rose 20 per cent during the year to March, the fastest pace recorded by the bureau since the series began in 2002. The national rise in house prices for the quarter was 4.8 per cent”.
Interesting facts don’t you think? So, as we continue to see more rate rises, lets get in and start providing the housing that we so desperately need in NSW!