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Rate Will go up!

Posted Tuesday, 26 October 2010 at 20:13 by Michael Chan
Tagged: property investing | interest rates
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Rate most likely will go up! By how much is the question?



RBA rate will go up



RBA decision not to rise interest rate last month was based on the following:
1. Inflation was low due to high currency ( http://www.facebook.com/notes/shape-home-loans/negative-gearing/170427472967504) 
2. international outlook was poor ie US market
3. Half of the 9 RBA board members were away- only 4 was present for the meeting ( lowest turn out in 2 years! )
Some of the RBA board memebrs that were absent on that day were people who would have supported a rate rise, including the  academic Warwick McKibbin- who is very supportive for a "few " rate rise in order to keep up with the shortage of affordable homes. 
A 0.25 increase doesn't sound like a lot- it's on average $50 extra a month for a standard $300,000 loan. But for many that's $50 to much already! especially with increasing public transport cost, living expense, food, school fees, petrol and  toll charge ( don't even get me started on Toll charged, the government wants to push the M2 toll from $4.50 to $6!!! ).
So While the times are still ok, start a budget plan now and save save save. Because unfortunately good times are coming to an end. 
The Above Graph say's it ALL! - it cant remain the same Forever. 
The Shape Home loans Team



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