3 months ago I would have (almost) put a house on the line that our increases to interest rates were at an end. It only confirms that outgoing RBA governor, Philip Lowe, was on the mark regarding the inflationary increases that were required to hedge our inflation issues.
I can put my hand up and say I got it wrong, but surely we have to be at, or near the end of these crippling increases?
I feel for tenants that will more than likely cop the brunt of these interest rate increases. Landlords, unless totally cashed up or with large net worth equity, will be pushed into squeezing higher yields from their tenancies. Its either that or sell, and with rental demands still huge (we average 10 applications per rental property), I can only see rents continue to increase in the next 12-24 months.
As an investor myself, given the forecast that house prices are set to rise in 2024, I continue to preach about holding on to property long term. In a perfect world, wouldn’t it be great to buy and never sell?!
As always, if you ever need to chat through property, investing, buying or selling, please reach out to me or any of the team.
I trust the lead up to Christmas is not too hectic for you.
Forever an optimist!
Shane
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