For those of us without fixed interest rates, these rate increases are hitting us pretty hard. Due to the incredibly long period of stability, we’re no longer used to the “variable” component of our variable interest rate.
This is having some noticeable effects on the property market:
- Decline in auction clearance rates as properties aren’t always reaching the vendor’s reserve
- Decline in property values – which can also be considered as a pricing correction after a long period of massive growth
- Wavering confidence amongst buyers as they wait and see what’s next
- Opportunistic home buyers and property investors closely monitoring the market, ready to make a move when the time is right.
For those of us who are closely monitoring the market, it’s interesting to note that there is still a lot of activity. People still want to buy and sell properties. We still want to move – upsize, downsize, opt for a tree-change or sea-change or spread their wings and move out of home or their rental property. We still want to achieve our property investment goals.
If that’s you, we’re here to help!
Now, more than ever, having a great mortgage broker or investment loan consultant on your side is vital. We will go through the pros and cons of different loan options and structures, we can help you run the numbers on different interest rate scenarios. We’ll inform you about the features and benefits of loans so that you have all the flexibility you need whilst not paying extra for those you don’t.
We can also help with refinancing if you want to look at other options for your existing loan.
Don’t be paralysed into inaction with these current changes. Take the opportunity to monitor and learn – and if the right property comes us, be prepared for action!
