Brendan Addison is a project manager for a construction company but says he will need to find extra work on the side to keep up with repayments on his mortgage and an investment propertyHe is looking at crewing for one of his friends who run events and booking more gigs as a DJ to accommodate further rate increases.
The increase was the 12th since the bank starting tightening monetary policy in May last year and brings the cash rate to the highest it has been for the past 11 years.“To be honest, it’s quite scary at the moment because before this rate increase, my home mortgage has already gone up by $2400 each month compared to a year ago,” Mr Addison said.
“The property is earning $410 a week, but it’s not enough to cover the mortgage repayments, so I need to plug the shortfall out of my pocket,” he said. “Now that we’ve crossed that threshold, the probabilities of a double dip downturn in Australian housing market have now moved to higher than 60 per cent in my opinion.
“For the past two decades, there has been a strong negative correlation between movements in the RBA cash rate and the CoreLogic Home Value Index,” she said.“However, like many economic trends since the pandemic, the housing market has defied expectations.
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Source: 7NewsMelbourne - 🏆 18. / 59 Read more »