ALL ABOARD THE INTEREST RATE RIDE…
Sweaty palms, sick to the stomach, fearful & worried… then the adrenaline takes over and excitement sets in…much like a roller coaster ride.
Interest rates the bane of our lives! Seems each and every month we?re sitting tight holding our breaths….”will they, won?t they???”. Much like that upside down loop on the roller coaster…this interest rate thing may not be quite as bad as what you may have first thought.
Yes! It?s true our ?friends? at the RBA slogged us with our very first interest rate rise for 2010 where the big boys followed by lifting their rates by 25 basis points. It also seems that we might be in for another few surprises before the years out. However it?s not all bad news!
Interest rate rises is the RBA?s way of telling us all that things are starting to look up.
Mr Stevens, the head ’honcho’ at the RBA commented that “the economy had performed better than expected in 2009 after a mild downturn a year ago”. He continued on to say “there are some signs that the process of business sector de-leveraging is moderating, with the pace of decline in business credit lessening and indications that lenders are starting to become more willing to lend to some borrowers.
“Investment in the resources sector is very strong.”
While interest rates are on the steady incline it should be noted that rates are still relatively low.The RBA obviously want to get interest rates back to a more ’normal’ type level.
The property market is holding up nice and strong and while the hike in interest rates may have shut many potential first home buyers out of the market it should be highlighted that rates are still well below those of two years ago!
We suggest you jump aboard, you?ll kick yourself for not getting into the property market now. The market is hot and it?s going to get even hotter. Buckle up…we?re in for one hell of a ride….woohoooooooooooo!