RBA raises cash rate to 6%

Discussion in 'Loans & Mortgage Brokers' started by Nigel Ward, 2nd Aug, 2006.

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  1. Nigel Ward

    Nigel Ward Well-Known Member

    Joined:
    1st Jul, 2015
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    989
    Media release is below.
    http://www.rba.gov.au/MediaReleases/2006/mr_06_05.html

    So what does it mean? For those who prepaid interest not much on the expense side :D

    Will this push the Sydney housing market into decline after the recent signs of mild recovery?

    Will the share market fall as a result?

    Or does nobody care because we all knew this was going to happen anyway and have priced it in already?

    Polish up your crystal balls

    N.
     
    Nigel Ward, 2nd Aug, 2006
    #1
  2. artgul

    artgul Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
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    Location:
    Sydney
    IMO, as a result of this and forthcoming interest rates rise, property in the East coast won't move up for some years or even decline. This will stop development and the consequency for tenants will be that their rents will rise. Rents will rise till Steve's "Rental Reality formula" will prompt investors to come back to the market. On the other hand, first time buyers will be used to 50+ mortgage loans facilities and other new features that are still to come to the market. This will inevitable end up in another boom as it always had.

    I think that the cycle is just moving along as it did before us and will moves after we all are gone.

    Cheers,
    artgul.
     
    artgul, 2nd Aug, 2006
    #2