Reserve Bank Sackings
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What are the implications of the recent RBA rate rise?
it's the real estate podcast across every state city and town of australia and welcome to another episode of the real estate podcast available on iheart radio every morning also on spotify and apple and wherever you get your podcast from it is another thursday and welcome to the fourth day of august for 2022 Coming up, we're going to be talking to Margaret Lomas regarding the rate rise and also the subsequent fallout with the RBA. What is the public feeling and sentiment over where we are at right now?
How has the public reacted to the RBA's decisions?
We'll try to understand that. And if you're celebrating your birthday for the fourth day of August, have a great Thursday. You share it on the same day as Barack Obama. He is turning 60 today. Meghan Markle is turning 40. And from the history books, tragedy on this day, the Muppets, Miss Piggy and Kermit the Frog, announced the end of their relationship on Twitter. And that happened on this day in 2015. From first home buyers to property investors and everything in between. Every morning on The Real Estate Podcast.
What mistakes did the RBA make regarding interest rates?
We are just as addicted to property as you are. Every weekday morning from 6.30. It's the main centre forecast with propertybuyer.com.au. And checking on your weather around Australia this morning. First, we go to Sydney expecting the rain today. 21 degrees is your forecast high. Melbourne, a possible shower or two with 18 degrees. Brisbane, it's another ditto day on yesterday with morning fog and then blue skies and 24 degrees as your forecast high.
How do rising interest rates affect first-time home buyers?
And in Perth, the showers are back and expecting 17 degrees. It's the Real Estate Podcast across Australia, seven days a week. Well, four rate rises in four months. It hasn't happened since 1990. It's the steepest rise in history. And as a result, people are calling for the Reserve Bank Governor's resignation over saying interest rates would remain low. and the argument some people are saying is that this leads to the very credibility of the RBA, especially when first-home buyers heard the signalling from the RBA that rates would remain low, and that's when they went ahead with their property purchases, and we all know what happened next. So let's bring in on a Thursday morning Margaret Lomas, a property commentator and host of My Property TV.
Good morning, Margaret. Great to have you on The Breakfast Real Estate podcast.
Thank you for having me.
So it's all a bit of a mess at the moment, isn't it?
It is a little bit of a mess at the moment. First of all, I think the critical error that the Reserve Bank made was to almost issue a promise about 12 months ago that rates were going to remain very low and probably there would be no rate rises until at least 2024. And as a result of that, people rushed in and got their mortgages thinking that they'd remain in the same position as they are. And of course, that's now not happening. And we're seeing that the Reserve Bank has had to necessarily begin to raise that cash rate. So we have a situation now where we have a significant number of people who, for the first time, they've gotten a mortgage in an interest rate environment that they've known before.
No other kind of rate environment like that.
What should potential buyers consider before purchasing property?
So there's an expectation that interest rates would remain low. These people have never been in the situation where interest rates have been high. Those people who got their mortgages when the rates were very low, who really only just qualified for that loan, they are now going to be the ones who feel the heat. What's being lost in all of this is although mortgages are going up, on a landscape where we actually have a lot of other inflationary pressures. So we're seeing power go up. We're seeing petrol go up. As we all know, the legendary lettuce has gone up. So we have all of these other pressures or price pressures around us. And the last thing people needed then was to also have that interest rate rise.
When they were approved for their loan, the bank estimated they could afford that interest rate rise. But the banks weren't fact in general inflation and the fact that the cost of living would go up.
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Chapters
7 chapters
1
What are the implications of the recent RBA rate rise?
0:02–0:39
2
How has the public reacted to the RBA's decisions?
0:39–1:16
3
What mistakes did the RBA make regarding interest rates?
1:16–1:48
4
How do rising interest rates affect first-time home buyers?
1:48–3:38
5
What should potential buyers consider before purchasing property?
3:38–5:36
6
How are vendors responding to the current property market conditions?
5:36–8:13
7
What future trends can we expect in the real estate market?
8:13–11:45
Speakers
2 identifiedMore from Aussie Real Estate Podcast
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Australia Housing Market Stability: Low Mortgage Arrears and Minimal Negative Equity Explained
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