The RBA has today taken another swipe at inflation, hiking interest rates by 25 basis points to 4.10 per cent, further denting investor confidence and dashing home ownership dreams according to the REIQ.<\/p>\n\n\n\n
Real Estate Institute of Queensland (REIQ) COO Dean Milton said regulatory and tax uncertainty was having a detrimental impact on investor activity.<\/p>\n\n\n\n
\u201cBuilding approvals in Queensland for the year-to-date in April were 2,607 below last year, showing the damaging impact interest rate rises are having on confidence,\u201d he said.<\/p>\n\n\n\n
\u201cFurther, lending indicators show a 23 per cent decline in loans to owner occupiers this financial year, and a decline of 27 per cent in investor activity \u2013 returning the housing market to the early days of COVID.<\/p>\n\n\n\n
\u201cAs Governor Lowe stated, it is now up to the government and business to drive capital investment to ease supply constraints in the economy.<\/p>\n\n\n\n
\u201cThe potential productivity delay in building infrastructure by the State and Federal Governments will have long term impacts on the Australian housing market.\u201d<\/p>\n\n\n\n
While the rise was largely predicted following minimum and award wage rises and persistently high inflation, the REIQ questioned the relentless approach.<\/p>\n\n\n\n
\u201cThis is the twelfth interest rate rise in the past 13 RBA board meetings, and despite this, inflation is yet to be tempered 12 months on from the first rise,\u201d Mr Milton said.<\/p>\n\n\n\n
\u201cThe April inflation figures showed that inflation was being driven by prices for life\u2019s basics such as housing, transport, and food \u2013 areas that are difficult to cut back on.<\/p>\n\n\n\n
\u201cAs highlighted by various economists the retail recession is already here. With household consumption accounting for 50% of Australia\u2019s GDP, we are concerned about the potential recessionary impact of these interest rate rises.<\/p>\n\n\n\n
\u201cThis rate rise will further the hardship of tenants, especially those on low incomes, when striving to enter home ownership, both saving the deposit and simply qualifying for a loan.<\/p>\n\n\n\n
\u201cAccordingly, we call on APRA to reduce their serviceability buffer back to pre-December 2021 levels, as we need more investors to bring rentals to the market and opportunity for tenants to realise their dreams of home ownership.\u201d<\/p>\n\n\n\n
This article was contributed by REIQ.<\/p>\n\n\n\n
You can find more information at: http:\/\/reiq.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The RBA has today taken another swipe at inflation, hiking interest rates by 25 basis points to 4.10 per cent, further denting investor confidence and dashing home ownership dreams according to the REIQ. Real Estate Institute of Queensland (REIQ) COO Dean Milton said regulatory and tax uncertainty was having a detrimental impact on investor activity. \u201cBuilding approvals in Queensland for the year-to-date in April were 2,607 below last year, showing the damaging impact interest rate rises are having on confidence,\u201d he said. \u201cFurther, lending indicators show a 23 per cent decline in loans to owner occupiers this financial year, and a decline of 27 perRead More →<\/a><\/p>\n","protected":false},"author":1279,"featured_media":3761,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[29,53,4],"tags":[],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3759"}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/1279"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=3759"}],"version-history":[{"count":1,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3759\/revisions"}],"predecessor-version":[{"id":3760,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3759\/revisions\/3760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/3761"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=3759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=3759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=3759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}