Property Investment Blog

Sunday, 8 May 2022

Impact of Interest Rate Increase

The reserve bank raised the 'cash rate' by 0.25% last week, taking it to 0.35%, with indications that further rate rises will be coming. This is the first rate rise in more than 11 years, in response to increased inflation, which the RBA is looking to keep under control.

It would be a good time to review all of the loans across your portfolio, to assess the impact increased rates will have to your overall cashflow.

As we wrote in our earlier post in April (Super Tight Rental Vacancy Rates is Main Australian Cities | PropertyDirector), the good news is that vacancy rates across most Australian cities are very low, meaning landlords should anticipate solid rental increases during the year which should help minimise the impact of the rate rises. 

Read the following article for further information -