KEEP IN TOUCH – JULY 2018
What in the world is going on in Real Estate?
In the last 2 weeks have you heard like I have, all of these?
* Adelaide’s house prices have gone up * The real estate boom has ended
* Reserve Bank will keep interest rates on hold * The banks will put interest rates up later this year
* Banks will not put interest rates up this year * The Adelaide Hills is the place to invest
All these points come from sources such as television morning shows, current affairs programs and newspaper articles.
How do such reports contradict each other so much? How can buying property be a good investment if the boom has ended and interest rates are going up (or not)?
Every potential buyer and seller is in their own unique situation. For example, low interest rates and poor performing super funds are hurting retirees. Just because their property value goes up, it doesn’t increase their quality of life. In fact many seniors are needing to sell their home for a cheaper one just to have enough money to live. These types of people need an increase in rates for they are highly reliant upon investments to provide something. An extra 1% or 2% from their investments will be greatly appreciated.
For those however who have borrowed big time (and many have), be it for their own home or fully lended investment property, imagine what an increase in interest rates does to their loan repayments? It will become scary for many mortgage holders.
Now, I am no financial expert nor I am giving professional financial advice. I am not qualified to do so, but simple economics says that if interest rates go up – then prices come down. So with all the contradictions going on, how does it really affect you?
Do some homework about costings, returns, likely growths in areas and other factors. This we can help you with!
Your area, your type of property, your situation in life are all specific to you – therefore before making any decision involving real estate, let us learn about your specifics and be sure the actions you take are right for you.
In closing, we want to focus a little bit on our Community Notice Board which is attached to every edition of our ‘Keep in Touch e-brochure. If you are not sure where it is, it is the second tab from the left, under our main picture just above this letter. Our main goal with the Community Notice Board was and is to help our local communities by providing a platform for them to spread their good news stories & notify our readers of worthy events. We believe we have achieved this over time as we now have several monthly newsletters and magazines to read and we regularly display one-off community events. Having said that, we have plenty of room on our board and more entries, events and articles are always welcome. Email email@example.com if you want to find out how to be a part of our Community Notice Board.
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