news

Rate cut effect unclear

By Staff Reporter

Investors will be watching any rate movements closely next week, but it’s unclear as to what effect they may have on the market.

Speaking to Smart Property Investment, Key Asset Management’s Grant Simpson explained that he’d noticed some significant trends affecting investors at the moment.

Firstly, he explained, investors are looking very closely at where they can increase their rent, “trying to capitalise on the push of rents going up in Sydney, which has been a constant now for two to three years”.

Secondly, however, “they’re focused on and are concerned with interest rates dropping and rents going up”.

While from a distance this may sound like ideal investment conditions, he said that many of the landlords he has spoken to are trying to find a very careful balance with their rental increases.

“[Many investors] are concerned about their current tenant leaving and the pool of tenants becoming smaller, and therefore they’re really thinking about how much they can push those rents before the tenant can move out and buy themselves,” he said.

These comments come as many industry spokespeople believe the rates will boost confidence in the market and first home buyer numbers.

SQM Research's Louis Christopher agrees with this sentiment, noting that "No doubt if the RBA does cut again we’ll see even more first home buyers in the market and even more investors in the market".

Rate cut effect unclear
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%