The last interest rate rise spells hard times for those struggling mortgage stress, but it could be a boon to commercial real estate investment. The Reserve Bank of Australia (RBA) increased interest rates by 25 basis points to 3.25 percent last week, a move that was soon reflected in major banks. Premier Anna Bligh said the rate rise is an encouraging sign of economic optimism But it was a blow to homeowners struggling to meet mortgage repayments. "For those feeling mortgage stress, a possible increase in interest rates is hard news," he said.
"What the Queensland property market needs some restoration of confidence of investors in large projects on a commercial scale." retail to large scale office buildings and some large high-rise projects had suffered from a lack of confidence among investors during the recession. Queensland Treasurer Andrew Fraser said that increasing the RBA said it was official - the economic recovery is underway.
real estate owned by the group President Brian White said a small increase in official rates should not hurt the property market. "This increase of 0.25 percent expected rate, which was only a matter of when, and people anticipate the rate will return to more traditional levels," he said. "I think we can afford a couple of interest rate rises and confidence in the economy and housing market overrides any concerns about where rates are headed." Mr. White said first home buyers take advantage of this scholarship program boosted the housing market had led during the first half of 2009, but now people improve their homes and property investors were more active.
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