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Showing posts from January, 2021

Houses Divided

Beware of buying houses based on loan rate movements. 🏑🌏 Australian policymakers use lending rates to stabilise house prices. House prices are expected to move opposite to the interest rates charged by banks, which are set in line with the RBA's rates. When rates fall, borrowers can afford higher repayments, higher principal amounts, more expensive properties, and vice versa. However, this has not historically been uniform.