Western Sydney to suffer following rate hike

Western Sydney to suffer following rate hike

03 November 2010 by Staff Reporter 0 comments

Matthew Sullivan

Western Sydney residents could bear the brunt of the Reserve Bank's surprise decision to lift the cash rate to 4.75 per cent.

According to Douglas Driscoll, chief executive of Starr Partners estate group, the RBA's decision to raise the cash rate by 0.25 per cent will create higher levels of mortgage stress and force potential buyers out.

"The market has slowed somewhat over the past month or so, and a decision to raise interest rates by a quarter of a per cent would make buyers in Western Sydney even more cautious," Mr Driscoll said.

"This would kill off some of the resurgence that we have seen this year, and will make it harder for first home buyers to enter the market, while those with mortgages will feel the strain and could be forced to sell."

Nevertheless, Mr Driscoll was confident Western Sydney would maintain good opportunities for potential property buyers and investors looking to enter the market in the near future.

"There are still some good opportunities across the greater Western Sydney market and with the stock shortage ongoing, good properties will continue to be snapped up and the strength of an investment in bricks and mortar remains strong."

 

 

Matthew Sullivan

Western Sydney residents could bear the brunt of the Reserve Bank's surprise decision to lift the cash rate to 4.75 per cent.

According to Douglas Driscoll, chief executive of Starr Partners estate group, the RBA's decision to raise the cash rate by 0.25 per cent will create higher levels of mortgage stress and force potential buyers out.

"The market has slowed somewhat over the past month or so, and a decision to raise interest rates by a quarter of a per cent would make buyers in Western Sydney even more cautious," Mr Driscoll said.

"This would kill off some of the resurgence that we have seen this year, and will make it harder for first home buyers to enter the market, while those with mortgages will feel the strain and could be forced to sell."

Nevertheless, Mr Driscoll was confident Western Sydney would maintain good opportunities for potential property buyers and investors looking to enter the market in the near future.

"There are still some good opportunities across the greater Western Sydney market and with the stock shortage ongoing, good properties will continue to be snapped up and the strength of an investment in bricks and mortar remains strong."

 

 

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