RESIDENTIAL PROPERTY
A RBA rate rise next month, would herald in yet another blow against property buyers’ borrowing power in Australia.
According to new analysis from Canstar, continued rate rises since April 2022 have seen single income borrowing power cut from $568,000 to $435,000, a loss of $133,000.
At the same time, due income borrowing power over the period has fallen from $1.3 million to $1 million, for a downgrade of $306,000.
“For years first home buyers have been struggling to raise a sufficient deposit to buy...
Steve Mickenbecker, finance expert at Canstar.
“First home buyers are the one group that will welcome a house price fall, but with each further 0.25 percent interest rate increase...
Three of the big four banks are predicting a ninth consecutive rate rise when the RBA meets on 7 February, bringing the cash rate up to...
“Higher December quarter inflation will drive the Reserve bank to a February decision to increase the cash rate by another 0.25 percent.
A rate hike by the RBA in February of 0.25% would result in another $10,000 reduction in solo buyer borrowing power, for...
For dual income buyers, a 0.25% increase would lead to another $23,000 reduction of borrowing power, for a total cut of $329,000 over the same period, for a loan size of $980,000.
“Even if the average income earning home buyer has put aside the normal 20 percent deposit and can cover stamp duty and...
The fast succession of interest rate rises by the RBA was a major factor in CoreLogic’s Daily Home Value Index (HVI) taking an 8.40% tumble, its greatest on record.
While the recent HIA-CoreLogic Residential Land Report, reported stabilising land prices across the country...
“To keep pace with diminishing borrowing power, hopeful homebuyers will need to go back to the drawing board to reappraise their property expectations.