July 22nd 2024.
According to recent research, it appears that many homeowners are feeling the pressure of high interest rates, with about 165,000 of them considering selling their homes if rates do not decrease by next year. This information was gathered from a survey conducted by Finder, which received responses from 1012 individuals. Out of this group, 27 percent admitted that they were not prepared for the cash rate to remain high, which translates to approximately 891,000 people.
The findings also revealed that 5 percent of respondents, representing the aforementioned 165,000 individuals, would have no choice but to sell their homes if interest rates do not decrease by next year. Additionally, a significant number of respondents have already taken on a second job to help with mortgage repayments, while others have had to rely on loved ones for financial support. Sarah Megginson, a personal finance expert from Finder, expressed concern for those who had been hoping for a rate cut by now, stating that they have been "left in a tough spot."
It seems that many homeowners are already struggling to make ends meet, with almost half of the respondents stating that they have had to reduce their household expenses. However, there is some hope as 22 percent of respondents claimed that they could still comfortably cover their mortgage. Unfortunately, for some, this may not be enough as Finder's research also revealed that 3 percent of homeowners would have to rent out a room in their house, while 2 percent would need to ask their lender for a repayment holiday.
It is no surprise that the recent decision by the Reserve Bank of Australia to keep interest rates at a 13-year high has caused concern among homeowners. The next board meeting, which is set to take place on August 5, is hotly anticipated as some experts are predicting a possible rate hike. This news may only add to the anxiety and uncertainty felt by many mortgage holders.
In light of these findings, it is understandable that many homeowners are feeling the strain of high interest rates. As we wait to see what the future holds for interest rates, let's not forget to support and uplift those who may be struggling during these challenging times. And while we wait, let's remember to tune in to Channel 9 and 9Now for live and free coverage of the Olympic Games Paris 2024, with the option to watch ad-free and in 4K on Stan Sport.
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