Fixed interest rates are rising in popularity with reports that about two out of every five home loan enquiries to mortgage brokers are now asking about a fixed-rate home loan product. It comes after the RBA cut the cash rate in May – and many lenders responded by offering fixed rates below five per cent, which is obviously very attractive to investors right now. Loan Market spokesperson Paul Smith says fixed rates for three years are the most popular, followed by fixed rates for five years.
In other news some people are still waiting for variable rates to fall but the falling Aussie dollar could see rates being put on hold for now. Some economists believe the Reserve Bank of Australia is unlikely to lower the cash rate much more for now, due to the falling Aussie dollar. HSBC Australia and New Zealand chief economist, Paul Bloxham, says the six per cent weakening of the dollar is actually the equivalent of a quarter of a per cent rate cut. He says future decisions about the cash rate will be dependent on the dollar and whether or not it rises or falls in the future.
Meanwhile, we all know the Gold Coast has suffered in the last few years. Now many houses on the Gold Coast have been hammered by rough seas. Huge swells have caused massive erosion along the Gold Coast, especially in the area of Mermaid Beach and Broadbeach where there are multi-million dollar properties. Hundreds of thousands of tonnes of sand have been washed out to sea and some homeowners are now threatening to sue the city council and state government as they claim they’ve been abandoned and work should have been done to stop the erosion earlier. It will be interesting to see if this has any impact on the price buyers are prepared to pay for these absolute waterfront properties. Probably more waterfront that they want right now.