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RBA keeps cash rate unchanged at 6.25%

Discussion in 'Finance & Banking' started by Nigel Ward, 3rd May, 2007.

  1. Nigel Ward

    Nigel Ward Team InvestEd

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    It almost went unremarked...but the RBA didn't put rates up nor did they drop them following their meeting on Tuesday.

    Added to the increasing media comment on strengthening in the property sector...is it time to start haunting the realestate web pages again???

    Cheers
    N.
     
  2. MJK

    MJK Well-Known Member

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    Based on the realestate forums,there seems to be a fair bit of excitement in Brisbane and Melbourne atm regarding real estate price surges.

    MJK
     
  3. Insight

    Insight Brisbane Buyers Agent

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    Well I'm excited!

    Seems as if there is a rocket under property prices at the moment in North Brisbane especially, not sure exactly why though.

    I would think the only direction rates are going to go in this environment is up.
     
  4. Jacque

    Jacque Team InvestEd

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    Well I did remark positively on it but before the event ;)
    http://www.invested.com.au/25815-post1.html

    I "haunt" most of my days anyway as you know, Nigel, :) and I've been noticing an upwards trend even in good ole "doom and gloom" Sydney, particularly in the Upper and Lower NS areas. Even the Hills seems to be recovering, with record sales and auction clearances lately in my part of town. The tide may be turning, and the confidence in stable rates may just be the catalyst (or at least the motivation) needed to stimulate more investor activity.

    That being said, however, it's more important than ever to ensure you make the most of every cent and get a good deal, especially in Sydney.

    Can't comment on Brisbane, though I was recently very surprised to get an unofficial appraisal from a REA on my properties up there- they've certainly moved more in the past 6mths than I thought they would. Sign of things to come perhaps..... Means more equity to draw down for me- happy days :D
     
  5. Glebe

    Glebe Well-Known Member

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    Jacque,

    What sort of gross rental return are you seeing for flats on the Lower North Shore?
     
  6. Jacque

    Jacque Team InvestEd

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    5%+

    Some recent real life examples

    Lavender Bay purchased $380k renting $430 p/wk
    North Sydney purchased $350K renting $360 p/wk
    North Sydney purchased $315K renting $330 p/wk
    Kirribilli purchased $300K renting $290 p/wk

    Another recent sale was in Waverton for $669K - asking rent of $550
    GY of 4.28% now, but with rising rents looking as though they're here to stay and really impacting on this part of town, it wouldn't take long to achieve 5-6% in a few lease renewals.

    That isn't to say, however, that your return is going to be 5% for all price brackets. Recent example was a $840K purchase for a client, with a shocking yield of just 2.5% - naturally, as prices rise, better rental yields are more difficult to achieve. However, their situation was vastly different as they weren't after the property for yield but rather future PPOR.
     
  7. Glebe

    Glebe Well-Known Member

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    Thanks for that Jacque. Food for thought..