How the RBA interest rate will affect on Real Estate?

Terry McCann wrote an article in Sunday February 8 Courier Mail – very interesting. “As predicted , the Reserve Bank officially pressed its-and Australia’s – “reset button on Tuesday”

The RBA cut the interest rate to yet another record low of 2.25%. it all but signaled it would probably cut again. most of the banks have followed in cutting their home-loan rates.

This might be all good news for anyone with a home loan or wanting to get one – although it could also be a dangerous trap for some of those potential borrowers. But its bad news for savers. …

It could encourage young – or even not so young to buy an overpriced property. An example – You can afford a $400,000 loan to buy say a $500,000 home with repayments being approximately $1800 per month. if interest rates were to return to anywhere near the normal levels you could find the repayments suddenly leaping to say $2,500 to $4,260 per month. When you try and sell your home, you could find you may only get $430,000 to $450,000 plus costs. (This is an hypothetical example)

Remember be careful and do your research.

Author: Dianne Ray

I have almost thirty years in business management in the hospitality, tourism, hospitality, real estate and service industries and in education as a teacher in secondary schools and TAFE Colleges. I was born in the Western District in Victoria, my schooling was in Hamilton and Melbourne and my Tertiary Education was at Melbourne and Monash Universities. My family consists of 4 sons, 3 daughter in laws and 5 grandchildren. Over the last 9 years I made my home in Noosa, Queensland and since February 2011 have moved to Brighton, a suburb of Brisbane and contract to 2nd Avenue Realty as a licensed real estate agent. Selling residential property in the the Sandgate, Shorncliffe, Brighton, Deagon, Bracken Ridge and other areas. I also sell and market boutique accommodation properties, such as Bed & Breakfasts,Self contained Cottages around Australia on Over my life time I have travelled extensively throughout Australia and numerous times overseas. My interests are obviously travel, all aspects of sport especially golf, outdoor pursuits, fine dining, appreciation of wine and love meeting people. I gained my Bachelor of Education and taught secondary and TAFE students for a number of years and studied for my Masters in Business Administration. I have been self employed for the last 20 years comprising owning and operating an exclusive 4.5 star B&B; established an e-commerce business involving the hospitality and accommodation industry; in selling, marketing, training workshops, relief service and management. I changed my career path ten years ago and concentrated on real estate and business broking. I am a licensed real estate agent in Queensland. My involvement in real estate has been very satisfying and I enjoy the interaction with the buyers and sellers. In my role as a real estate agent, I am able to effectively fulfil the needs of clients and this is my passion, and to use my skills to obtain a win/win situation for everyone involved. I believe in the old traditional values of respect, integrity and genuineness and I am very passionate about helping people with their needs and I focus on listening to and genuinely helping my clients. I am a very honest, natural outgoing person who enjoys life to the fullest “My mission is to live with integrity and compassion and to make a positive difference in the lives of others”