The RBA decided yesterday (4 November) to leave the cash rate at 1.5%, where it has stayed since August 2016. The last rate rise was from 4.5% to 4.75% in November 2010. With no evidence of a significant improvement in the domestic economy, many forecasters expect the cash rate will remain on hold through 2019 and also the following year.

The final cash rate of 2018 has been announced by the Reserve Bank of Australia.

RBA governor Philip Lowe announced the rate would be remaining at 1.5%.

As there is no cash rate meeting in January, this means the rate will have remained the same for at least 29 months in a row.

Experts and analysts were expecting the decision, citing low unemployment and wage growth.

While many over the last few months have begun predicting the rate might stay the same until 2020, the shadow board of the RBA has said there is “an increasing need” for a hike in the next six months.

CoreLogic’s head of research, Tim Lawless, said that “Considering the diversity of economic conditions, the hold decision comes as no surprise”.

Explaining what the RBA would be looking at, particularly in terms of the housing market, he added, “Labour markets are improving, but wages growth remains sluggish and inflation has softened. It’s a bit harder to gauge the RBA’s view on housing market conditions, with the RBA continuing to call out weakening conditions in Sydney and Melbourne.

CoreLogic data to the end of November highlighted that the Sydney market has already recorded a 9.5% decline in values since peaking in July last year and will likely surpass the previous record peak to trough decline of 9.6% which was set during the last recession between 1989 and 1991.

Despite this weakness in the largest cites, dwelling values in Sydney remain 41% higher than they were five years ago and Melbourne values are still 38% higher both of which show five year growth rates well in excess of most other capital city markets.

Additionally, five of the eight capital cities have posted a capital gain over year to date however, from a macro view they have much less of an influence on the national figures than Sydney and Melbourne do.

To date we haven’t seen the housing downturn impacting on household consumption or saving, however this is likely to be a key factor the RBA will be monitoring.”

Mortgage holders are on course to go a decade without experiencing an increase in official interest rates by the Reserve Bank of Australia (RBA), according to one broker network.

The RBA decided yesterday (4 November) to leave the cash rate at 1.5%, where it has stayed since August 2016. The last rate rise was from 4.5% to 4.75% in November 2010.

With no evidence of a significant improvement in the domestic economy, many forecasters expect the cash rate will remain on hold through 2019 and also the following year.

That means a whole generation of mortgage holders could go an entire decade without seeing official rates rise, although they will have experienced out of cycle rate movements from lenders.

There is no need for the RBA to do anything at the moment with the mortgage market constrained by uncertain household consumption, falling property prices in Sydney and Melbourne, the fallout from the Hayne Royal Commission’s final report and the looming federal election.

Borrowers face a very challenging lending environment with banks toughening their lending criteria and conducting detailed examination of borrowers’ expenses and all forms of income used to service their repayments.

The lending environment could become even more complex.

This tightened lending environment, means a larger number of Australians are experiencing difficulty securing a home loan due to new, stricter assessment criteria in which their savings and living expenses are being forensically examined.

That being said, those who present less risk are able to negotiate a more competitive home loan deal with lenders, who are competing vigorously for financially fit borrowers.

Looking ahead, borrowers should not be complacent, as securing a home loan in 2019 may become increasingly complex. This highlights the need for borrowers to get their finances in order and seek expert advice from a qualified mortgage professional, who can guide them through the process and offer a choice of lenders.

Best Regards

Linda 姬琳达珍 and Carlos Debello (LREA)

LJ Gilland Real Estate Pty Ltd

Request FREE Rental Appraisal here!

“Your Local Property Management & Sales Specialists”

PO BOX 19
ZILLMERE 4034
Ph: 07 3263 6085

https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/32-musgrave-st-north-lakes-aajcrz

https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/32-musgrave-st-north-lakes-aail7o

https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/19-eaton-cl-north-lakes-aaj14y

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/41-belmore-street-northgate-aafqu2

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/5-raymont-street-north-lakes-aagq0c

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/12-may-st-mango-hill-aafxwk

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/12-may-st-mango-hill-aag2go

https://www.ratemyagent.com.au/real-estate-agency/lj-gilland-real-estate/property-listings/10-karawatha-st-springwood-abpzj5

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/41-belmore-street-northgate-aafqu2

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/13-narelle-crescent-rochedale-south-aaf3pg

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/3-sunhaven-crescent-kuraby-aafggb

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/16-st-clair-court-redland-bay-aag45d

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/6-greenmeadow-road-mansfield-aafms7

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/11-reynolds-cl-redbank-plains-aafwtr

https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/11-reynolds-cl-redbank-plains-aafu86

http://www.facebook.com/ljgrealestate & Find Us on Google+

About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. LJ Gilland Real Estate Pty Ltd LREA推荐书LJ Gilland房地产 http://ljgrealestate.com.au/testimonials/ http://ljgrealestate.com.au/competitive-commission/ http://ljgrealestate.com.au/property-management/ http://www.facebook.com/ljgrealestate L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
This entry was posted in Australia, Banking, Brisbane, china, commercial, ECONOMIC OUTLOOK, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, Empowerment, family, finance, Foreign Investment, GDP, LJ Gilland Real Estate Pty Ltd and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.