The Reserve Bank of Australia has raised the official cash rate from a record low of 0.15 in April to 2.35 in September. It’s the fastest cash rate rise in history, and it’s taken most of Australia by surprise – especially considering the RBA predicted in 2021 that there wouldn’t be a rate rise until 2024.
This leaves numerous questions on the lips of home buyers across the country. Do you pause your dream home search and wait for rates to drop in a couple of years? If you purchase now, are you buying a property that will decrease in value? Can I afford another 1% rate rise? Will this hurt out lifestyle too much? The list is endless. In our opinion, it all comes down to two things: what is your strategy & what can you afford?
The word ‘strategy’ can be bounded around as a buzz word at times, however at Ynance we like to think of a property strategy as the ‘purpose’ behind your purchase. A sound strategy will clearly define your preferred type of property, the timing of the purchase and usually has an agreed end goal in mind.
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