INTEREST RATES !!

 Hate to say it but I think the interest rates will go to 7% retails !!  Yep I know it sucks !! 

The thing is you need to get ahead of the game, start smashing those repayments now, stop spending your extra money and pump it into your mortgage.

When will interest rates stop rising? 

After interest rates had spent the past 11 years doing nothing but getting lower, inflation finally re-emerged in 2022, leading to rapid increases in interest rates. 

The cash rate was 0.1% at the start of May 2022 when the RBA decided to lift interest rates by 25 basis points. Between May 2022 and December 2022, official interest rates have climbed 300 basis points. 

Looking ahead to 2023, we expect that interest rates will initially continue to climb but it seems likely that somewhere between February and May the RBA will pause its hikes.  

Research shows that changes to interest rates take between one and two years to fully impact the market. We’ve had many rate hikes in a short period of time so we expect that we are close to the end of the rate hike cycle, but the impact from previous rate rises will be felt well into 2023. 

What will property prices do?

Some people believe that our prices will drop throughout 2023 - maybe in the Eastern States but I dont believe that's the case for Perth. We are still seeing so many people flocking in we just cannot keep up with the demand.  Whilst the demand is there and the competition is created for the homes I cannot see us dropping.  We are just starting to get back to where we should have been 7 years ago.  This is a great time to sell and downsize.

NSW's lead and giving the first home buyers the option to pay stamp duty or land tax?

Late in 2022, the NSW government passed legislation that allowed first-home buyers purchasing a property under $1,5 million to choose between paying stamp duty upfront or an annual land tax.  They anticipate that the majority of buyers will choose the land tax option.  It will end up being cheaper unless they hold the property for more than 20 years.  Since most firt-time buyers aren't purchasing their forever homes, this is unlikely. (why have anything at all but a flat fee is what I say).

But dont worry Perth we dont even have that option okay?

It's going to become that not one of our kids will be able to buy in the Western Suburbs they will have to buy miles out.  Maybe I should just keep my units for a while.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!