But first …. Last year (based on my reading) I made two predictions;
- Interest rates would stay firmly on hold
- Sydney house price would peak
- Both of those were 100% correct with the prism of hindsight …
Until I see evidence to the contrary, interest rates will stay on hold for most of this year (and maybe all) - The Reserve Bank, no less, said so in November.
The surprise in 2017 was the extent to which APRA and ASIC attempted to deter investors and the unbridled enthusiasm in which banks took up the cause by inflating rates just to investors. Never stand between a banker and a pot of money as they say.
This gives two significant guidelines for 2018 to plan by:
Owner Occupiers
- If you have an owner occupied loan I will be doing everything in my power to have your rate reduced (in my regular 6 monthly reviews with you).
- If you wish to enter the market and buy a home or shift home, then this is the year to do so.
Investors
- In general, investors have exited the market, and in situations such as open homes where numbers are down, house price is now more competitive in favor of the buyer.
- Let’s say you might live for a long time, let’s say that investing for the future is a good idea – if that is true why would you let APRA or ASIC to impact on those plans? When all is said and done – interest rates to investors are still in the 4%’s.
… One more thing… Exciting things are coming for my app Ask Alan in 2018
- Integrated Loan Tracker- Keep on top of your applications status from submission through to settlement and beyond. Complete with milestone notifications direct to your personal device, and never be left wondering where your application is up to.
- Secure Portal Login: View, update and maintain your own personal details file – say goodbye to complicated ‘application details’ forms.
- Secure Document Upload: Upload pay slips, supporting documentation, verified ID and more all from the palm of your hand and with guaranteed security of your personal information.
- Product Disclosures Gallery: No more wasted paper! Access all Terms and Conditions, product disclosures and fine print documents, specific to your products and loans, without the messy paper trail!
Watch this space…New Features, Coming Soon!