Hi,
I came across an article in the Australian today that confirmed the stability of mortgages in Australia < http://www.theaustralian.com.au/business/city-beat/moodys-sees-stable-rmbs-rating/story-fn4xq4v1-1225871961204 >. It indicated there had been a small rise in arrears and deliquencies but that the rise is not expected to be significant even if there are more interest rate rises.
As a budding property investor I am not worried too much about the level of interest rates as long as the numbers work. But can the same be said for the average investor and prospective home owner? Are people getting nervous? I know clearance rates at Auction have dropped in Victoria but they were still sitting at 74% last weekend. Perhaps there will be a few more bargains in the market?
Anyway, I just thought it was interesting. I would be interested to hear other thoughts.
Regards,
Andrew
itsandrew
Go as far as you can see and you will see further.
I have though also about the falling AUD exchange rate
If AUD falls then Petrol cost increases as Petrol is imported from Singapore
If fuel prices increase – cost of goods increase
Also consumer items are imported these go up in price.
If prices go up – wages demand increases for wage rise- If wages increase – inflation increases
If inflation increases then interest rates increase to control it.
So not only does average mum and dad and FHO get hit with interest rate rises but also the cost of living rises due to the exchange rate AUD falling.
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