Thursday, April 8, 2010

Uncle Glen...do you have to???

I was holding out for Glen Stevens to at least hold off for one more month before continuing to increase rates, but it seems he has finally decided enough is enough when it comes to property price rises, so he upped it. Hmmm...I wonder if he realises that raising interest rates is kind of a green light to raise rents, and, from an investors point of view, this is great. However, this does not negate the fact that rates are up and my holding costs mean even less chance for me to have KFC (which by the way, I have given up on until I drop to 80kg; 4 more to go). So, in summary, it's good and it's bad. Investors should see CG in the near future, as the economy is strong (so it seems), hence there is no need to panic. Will this rise impact on the current mini boom, especially noticeable in Melbourne at the moment, and to some degree, Sydney? Will this signal a change in sentiment, are investors going to shy away from the market? Time will tell, but for now, as we are constantly being reminded, we are still below "average rates"...

Ciao...

1 comment:

Jane said...

I'm glad to have come across your post. Many people are still investing in either residential or commercial property throughout Australia, and the country, having seemed to have weathered the global recession fairly well, will carry on to be a fantastic investment destination for many years to come. Thanks a lot!