New research by finder.com.au shows that rents are expected to jump by 2.8% this year, as renters will not be immune from rising housing costs. This is following the new APRA rules and some lenders increasing investment loan rates.
"For the majority of households who don't have a mortgage (about five million households or about two in three – two million of which are renters), it's not looking good for many of them either as new research by finder.com.au suggests monthly rents could be set to increase by nearly 3% nationally as Australian banks increase rates on some of their investment loans,” said Michelle Hutchison, Money Expert at finder.com.au.
Meanwhile, all 31 leading economists and experts surveyed were correct that the cash rate would hold at 2.00% this week. The website said many of the experts felt that the last two cash rate cuts in February and May need more time to filter through the economy.
Moreover, one in five (19%) of the experts are expecting another cash rate cut before the year ends. The majority of experts, 21 (or 38%), are also expecting property prices will keep rising this year, and more than half (55%) are forecasting the cash rate will start rising next year.
Furthermore, more than half of the experts surveyed (55%) are forecasting the cash rate will start rising next year.
"The big four banks announced increases to some of their investment home loans following new APRA guidelines. ANZ, Commonwealth Bank and Westpac all announced 0.27 percentage point increases to their investment standard variable rates, while NAB is increasing its investment line of credit and interest-only loans.”
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