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Property Investing With Australia's No.1

Hear Kevin Young’s view of the world at large and how it impacts property investors.

  • 10 Aug, 2017

Episode 129 Ask Kevin Young - Are the Experts Right About Interest Rate Hikes?

In this weeks’ episode of Ask Kevin Young I chat with Roxy about a question from our viewer Robin, are interest rates going to go up or down?

The majority of experts are saying that rates will increase which is causing a lot of sensationalist headlines in the papers. I think this is a load of hot air, here are the main reasons I have for believing that rates will actually be lowered.

  1. The current economic climate in Australia is edging towards recession. This means that higher interest rates would be detrimental to not only our economic growth but also to property owners. The banks won’t risk raising rates at this point in time.
  2. Australia’s low inflation means that it will take a long time for interest rates to rise.
  3. Australians have invested heavily in real estate which is a safe investment compared to other countries that have their economic futures tied to the global stock market.

According to figures from Westpac, which has released accurate predictions in the past, interest rates will be lowered to 1.5% and should stay at that number for some time.

The important thing to remember when fixing your interest rates is that the date your fixed term ends is more important than the date it starts. At Property Club we advise going into a fixed rate loan as rates begin to rise, this way you will avoid being hit with an even higher rate once the fixed term expires.

Regards,

Kevin Young