The latest news to pause interest rates was welcome news to buyers and sellers. But sitting in the back of many people‘s minds is the wave of loans about to come off fixed interest rates.
It‘s reportedly about $250bn worth of loans. So what does this mean?
Owners who had fixed their property loans at the record low rates, around two per cent, will see that loan move in line with current rates, roughly a six per-cent variable rate.
This is a huge shock, and for those that aren‘t ready, it can cause a lot of internal stress and push them to sell their property. This is the third large group (or wave) of property owners to experience this since Covid, and what is interesting is what we have learnt from the first two.
The good news is that there is a waiting pool of buyers. Hallelujah! This group of buyers is approved under the current interest rates; they are coming in with eyes wide open to the repayments and are busting to get their piece of Queensland. This is seeing most of these sellers pocket some profit from the sale.
What the sellers are doing is quite interesting too. Many of them are benefiting from the uplift in their property and now have money in the bank, so many are buying straight back into the market. These buyers are also moving a few suburbs further out or changing the criteria for their search, and adding their new chunk of cash from the sale to allow them to stay local.
Haesley Cush I This article is from the August 13th issue of The Courier Mail Digital Edition. To subscribe, visit https://www.couriermail.com.au/