As you probably heard yesterday, the official cash rate remains unchanged, but as we’ve seen over the last 3-5 years, lenders interest rates have not always moved in line with the RBA cash rate due to cost of funds. It does suggest that there is a bit more stability in the economy, although we would like to see more than just the property market grow.
Over the past 18 months there has been significant change to lending criteria, enforced by governing body APRA. This is having a negative impact on financing options for investors.
If you’re a property investor, right now you need to ask yourself three questions
- Do you plan to hold your investment property for the next 3-5 years?
- Are you concerned about lenders recent restrictions for investors?
- Are you worried about interest rates going up?
If you’ve answered yes to any of these questions, you need to call me so we can discuss your options and take action now.
We’ve seen some very competitive fixed rates for investors and a lot more of our clients are taking this option with the current uncertainty.
Other news to note is that the Victoria government has announced that stamp duty will be abolished for 1 July 2017 for first home buyers, buying property under $600,000, and there will be reductions for properties between $600,000 – $750,000.
We’re hoping the impact of this will be positive and that other states will sit up and listen, and then follow suit. Let’s see what happens here.
Whether it’s for investment or living, whatever you need to finance, I’d love to help!
Michael Luca
0405 113 543
michael@lovehomeloans.com.au
