By Ann Marie
WYNDHAM’S home owners and businesses are tightening their belts after last week’s news of an interest rate hike.
The official cash rate increased by 25 basis points to 5.75 per cent, raising the payments on the average mortgage by about $15 a week.
Coming hard and fast on the rapid rise in fuel costs, the decision will affect not only residents but the local economy, said Bob Westwood, managing director of Werribee’s First National Real Estate.
“The people in this area are mainly family people, and many have to travel a fair way for work. It’s a double whammy.”
At least one family in the mortgage belt heartland of Point Cook is preparing for even more increases.
The suburb absorbs three new families a week and is the fastest growing area of Wyndham.
“This is only the thin end of the wedge, and anyone who thinks this will be the last rise is mistaken,” said Liz Mumby, public officer for Point Cook Residents Association.
She and husband Daniel, both professionals in their late 30s, were among the first residents to move into the Boardwalk estate.
They bought their house for about $200,000 five years ago, when interest rates were low.
But they know those days are probably long gone.
“We’re a bit older than some of the more recent families and can remember the 1980s, when interest rates were almost triple,” she said.
“We’ve decided to start paring back now.”
Daniel has decided to use his motorbike now as the main method of transport, as well as foregoing the tradition of a Friday night pizza.
“We’ve become really conscious of our expenses, because we’re sure there are more increases to come,” she said.
But real estate agent Mr Westwood said Wyndham would keep its title as one of Australia’s most favoured areas to settle for first home buyers and young families.
“People still have to go somewhere to live, and it won’t be Toorak or South Yarra,” he said.
“This could also strengthen our rental market, because people will realise they now won’t qualify for a loan for a few more months and stay locked into rental accommodation.”
The higher interest rates have had an added affect of encouraging the Australian dollar to strengthen, hurting Wyndham’s export traders.
Alvin Gopal, general manager of Horticultural Skills Australia, said the company was preparing for a significant down turn.
It specialises in training international students as horticulturists, mainly from the Asian sub-continent and China.
“We’re expecting to see our enrolments drop in the next month or two, because the dollar has become more expensive overseas.”
Students must prove they have enough Australian cash before they can get a visa for the Werribee company’s two-year program.
“It’ll be difficult for them to qualify for our course now because the goal posts have suddenly been lifted,” Mr Gopal said.
