Prices are going down; it sounds amazing, right?

Archive for July 2022

Prices are going down; it sounds amazing, right?

Posted by Rishabh Dhall 
· July 8, 2022 
By Rishabh Dhall

8th July, 2022

Prices are going down; it sounds amazing, right?
And for the people who are looking to enter the market, it will be dream come true situation but behind this plunging price, there are hidden certainties that could bite many Australians.

Right now, this turning point of the market, where interest rates are rising, making mortgage repayments more expensive.

As per the current situation, you could expect a $230 addon to your monthly repayment on the loan of $800K.

Now, for first home buyers,

It will be a hard decision by looking at the current dynamics of the market and it will be a trade-off between lower prices but increasing mortgage costs compared to likely further rises in the cost of renting.

Another Shocking card has been dropped by RBA, bringing the official cash rate target to 1.35 percent. There could be more fall in Adelaide house prices as the interest rate rises.

I think, by October and November come around, people will get used to the market situations and that will be the new norm.

Now, let’s talk about how you can benefit from selling your property for a good price?

It comes down to displaying it in an “immaculate condition” and having a successful marketing strategy.

If you present your property well, have the right real estate agent with you and are all ready to sell, it will still sell at the best price you are looking forward to.

Seriously, you need to see the market and step in. The person who is ready to offer 900K now might be able to pay 800K in a month. So, you know where we are going now.

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RBA’s 1.35% cash rate increase: what does it mean for Adelaide’s real estate market?

Posted by Rishabh Dhall 
· July 5, 2022 
By Rishabh Dhall

5th July, 2022

If you’re wondering how the 1.35% cash rate increase by the Reserve Bank of Australia (RBA) will affect Adelaide’s real estate market, then look no further than this article! With so many changes to the property market, it’s hard to know what they mean and where you should be putting your money when it comes to buying real estate in Adelaide.

The latest interest rate change

According to reports, the CommBank has predicted that house prices will drop by 15 percent over the next 18 months. This unexpected rise has shaken the market and buyers’ dream to own their desired home would get hit as far as a mortgage payment is concerned. There’s no doubt that an RBA interest rate change will have a large effect on Adelaide’s property market.

Changes to your mortgage repayments, if you are at the current loan repayment stage

The other point worth bearing in mind is that while the changes are designed to make people think more carefully about getting into debt. This sudden rate rise will no doubt add $146 a month on a loan of 500,000 respectively $293 a month on a loan worth $1 million. 

Let’s Think?

If the buyers sit and cherry-picked the market and delay their decisions, it will be repassed by the bank again, now the chances would be less to borrow more money again. Now before more interest rates & inflation kick in, eventually decreasing your chances to borrow & spending potential. If you can afford to wait, you can go ahead with the decision but if something comes up and suits your desire, buy it straight away.

Let’s face it
Buying or selling under pressure conditions means you will not be having time to make smart decisions. It would be better to buy or sell the house now!

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