Hello all, well I finally have some time to continue blogging, so I thought todays topic should probably be centered around the recent interest rate rises. My personal opinion and prediction is that interest rates will continue to rise until mid 2010. Australia's prosperity is ongoing, the mining boom is still in its infantile stage and hence money into Australia is going to continue. We all know the RBAs strategy of lifting rates to slow inflation, so rates, as far as I can see, will continue to rise for a while yet. I am suggesting that people fix a portion of their loan (I am not a finance adviser) for 2 years.
What I am seeing is a slight downturn in the market, so if you can buy, the next 6 months will be full of bargains.
Bye for now...
www.ozpropertyinvesting.com.au
2 comments:
I bet none of us thought it would end up going down this year!! just goes to show that over the life of an average home loan, the people who fix their loan generally end up paying more over all.
Indeed, this prediction was wrong. Although if you had taken my advice, and you fixed a portion of your loan, you would, still only be paying around 8%ish...which isn't too bad. After the fiasco of seeing people trying to get out of their fixed loans, I am now totally against them. I would much rather stay variable...it's less of a gamble.
See how much I learned this year??? :)
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