Otis Finance

Variable vs Fixed Interest Rates is always a topic of conversation

An insightful article from the Prop Track team looking at the uptake of fixed rate mortgages during COVID. Historically fixed rates occupy 10 - 20% of new lending.
With the support of the RBA's Term Funding Facility, this saw fixed rates below 2% the uptake for fixed rate mortgages peaked in July 2021 with 45% of new loans having a fixed rate.
12 months on, as the TFF facility is no longer available, the uptake of fixed rate mortgages has shrunk dramatically to be 5.5%

Higher Interest Rates Sideline Fixed Rate Mortgages - realestate.com.au In 12 months, fixed rate mortgages have gone from 45% of new lending to only 5.5% in July - a remarkable shift in such a short period of time.

Core Logic this week released a report providing an insight into Australian Property Values over the past 30 years.

Some relevant statistics taken from the report include:

- Capital cities have produced an average 5.4% compounding growth rate since July 1992
- Melbourne has the highest growth rate during this period of 5.9%, with Perth recording the lowest at 4.8%

Overall a great insight into property investing and the long term benefits provided historically

www.corelogic.com.au

Looking to understand the breakup of your suburb, with the 2021 Census Data coming available - check it out below

Do you live in a 'millennial hub' or 'boomer base'? Census maps reveal what's special about your neighbourhood From the remote town leading the nation on housework to the "man-drought" in our wealthiest suburbs, few datasets shine a light on our neighbourhoods quite like the census. See what's happening in yours.

The Reserve Bank has made the decision to increase the cash rate by 0.5% at todays board meeting.

Commentary provided sees inflation peaking towards the end of the year, returning to an appropriate range of 2 - 3% in 2023

Statement by Philip Lowe, Governor: Monetary Policy Decision | Media Releases At its meeting, the Board decided to increase the cash rate target by 50 basis points to 1.35 per cent.