Hi all,
Well, the RBA rate cut of 1% was certainly a shock for us - but quite welcome!! I'm interested to see what the rate cut will mean to you?
For us, this will mean around $7k in savings if this lasts at "todays rates" for 12 months. On the other hand, I expect it will make us less inclined to push up our rentals when leases end (for the good tenants ). We will certainly keep them within market rates, but I won't have to worry about possibly losing a great tenant by increasing the rent - because if interest rates stay where they are, I probably won't do it!
We've always had a strong buffer in place (with aimed neutrally geared properties), but I don't think we were the only one's wondering after the past 12 months of interest rate rises, doom and gloom - how much is enough for a buffer? We were always planning on buying again this year, and have made some offers -but now our confidence is that much higher that we don't have to worry so much about reducing our buffer when we use some of those funds for the deposit.
If the doom and gloomers are right, and RE prices drop - we will have to live with that, but we aim for neutral geared properties so it really won't have too much effect since we're in it for the long-term. The buffers have always made it possible for us to stay in it for the longer term - and now with today's interest rate cut, our buffers are all that much stronger
I am for one looking to buy (always was, but this interest cut has just helped with that SANF a bit more!!)
What about you?
Cheers,
Jen
Well, the RBA rate cut of 1% was certainly a shock for us - but quite welcome!! I'm interested to see what the rate cut will mean to you?
For us, this will mean around $7k in savings if this lasts at "todays rates" for 12 months. On the other hand, I expect it will make us less inclined to push up our rentals when leases end (for the good tenants ). We will certainly keep them within market rates, but I won't have to worry about possibly losing a great tenant by increasing the rent - because if interest rates stay where they are, I probably won't do it!
We've always had a strong buffer in place (with aimed neutrally geared properties), but I don't think we were the only one's wondering after the past 12 months of interest rate rises, doom and gloom - how much is enough for a buffer? We were always planning on buying again this year, and have made some offers -but now our confidence is that much higher that we don't have to worry so much about reducing our buffer when we use some of those funds for the deposit.
If the doom and gloomers are right, and RE prices drop - we will have to live with that, but we aim for neutral geared properties so it really won't have too much effect since we're in it for the long-term. The buffers have always made it possible for us to stay in it for the longer term - and now with today's interest rate cut, our buffers are all that much stronger
I am for one looking to buy (always was, but this interest cut has just helped with that SANF a bit more!!)
What about you?
Cheers,
Jen