Tuesday, July 1, 2008

Perth Homeowners Urged to Sell, Sell, Sell

Things are about to get worse... that is the clear and unequivocal warning from Wizard Home Loans founder Mark Bouris has been quoted saying recently. People already struggling to repay their mortgages should look to sell their homes and downgrade before its too late. There are various factors that were outlined by Mr Bouris.

1. Interest rates are not falling anytime soon. The inflation effect on petrol and food etc will inevitably cause the RBA to consider slowing the economy through increased interest rates.

2. Refinancing fixed interest rates people who are on fixed interest rates are soon going to come out of their fixed interest rates and will have to find repayments worth 30% more than what they have been paying. This will no doubt shock many Australian homeowners who may have gotten into a pattern of expenditure that reflects their interest repayments and may find it hard to adjust.

3. Rising cost of living Even without the change in interest rates, people would already notice on FuelWatch that the petrol prices have gone up significantly.

You can read the article here

Meanwhile, the Housing Industry Association of Australia has said that demand for new homes has dropped 5% in May across Australia.
The largest decline in home sales took place in New South Wales, with a fall of 9.4 percent in May. Sales also fell dramatically in Victoria by 6.8 and 4.9 percent in Western Australia. This could be due to buyers waiting for the change in stamp duty which will drop stamp duty by 15% after 30 June.

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