Happy New Year 2024
Happy New Year 2024
Welcome to 2024! We hope your festive break was a happy and relaxed one and that you are looking forward to an exciting new year ahead.
We kick off the new year with what was considered to be a quite ‘normal’ interest rate a few years ago. The RBA increased the cash rate 8 times in 2022 and a further 5 times last year in 2023 - the official cash rate as it stands is 4.35%. If we go way back to April 2012, the cash rate back then was 4.25%, so for many of those who remember, we fall back to that 4.00 - 4.50% range that was consistently stable for several years and is still regarded as economically ‘reasonable’. Though there is a whole new generation of borrowers over the last 12 years or so that have never seen interest rates rise until recently, so it’s understandable that it’s come as a shock to many who find themselves having to juggle finances more than ever just to meet daily expenses and keep the roof over their head.
Last year
In February, we shared our opinion (based on our experience and research) that the Australian economy needs to have the cash rate up around the 4.00 – 5.00% range for the country to move along nicely and we are exactly there just 12 months on, with mixed opinions around what the RBA will do this year – many economists predict the situation will remain tight for the first 6 months then ease in the latter half of the year. In reality, only time will tell. It all comes down to a number of economic factors, with inflation being high on the list.
The Outlook
So, the outlook for 2024 is positive whichever way you wish to look at it. Interest rates are reasonable and the inflated growth in property values seem to have slowed somewhat, though as always, unique properties in prime locations are still in high demand and always seem to fetch high prices, holding their own in regards to value over time. And there are still lots of incentives for first time buyers to get out of the rent race and into their own home.
Your Broker
It is our job, as your professional and experienced brokers, to help you make it happen….. you do your bit, then we do ours in helping secure the right loan, at the right rate, and one that works best for you.
The RBA
The RBA kept rates on hold in December, which has helped retail trade over the festive break, though signs of slower new year trade across many sectors, including property is showing, so if you are looking for a good deal, now is the time to look and buy and do your bit for the economy. There is mixed opinion on the next rate change (up or down), so we will soon know on the 6th February when the RBA meets for the first time in 2024.
Home Loan Health Check
The beginning of a new year is also the best time to take stock of your current home loans and property portfolio. We are always busy assisting borrowers renegotiate their home loans or simply get them a better interest rate deal, so please call our office on 1 8000 VINCI (1800 084 624) to arrange a confidential chat and get your home finances sorted
As always, enjoy life, work hard, play safe and remember that we are always here to help you
Take the Confusion Out of Lending
Inspirational Quotes
“New year is the glittering light to brighten the dream-lined pathway of future. – Munia Khan”