While it had been fully expected that the Reserve Bank of Australia (RBA) would keep the cash rate on hold at yesterday's board meeting, all eyes are on investment lending as new research by comparison website finder.com.au shows rents are expected to rise by 2.8 per cent.

The finder.com.au monthly Reserve Bank Survey found all 31 leading economists and experts unanimously predicted the cash rate would hold at 2.00 per cent, with many saying they felt the last two cash rate cuts in February and May need more time to filter through the economy.

The survey also found that almost one in five of the experts are forecasting another cash rate cut this year. Despite this, the majority surveyed are expecting property prices will keep rising this year.

Michelle Hutchison, money expert at finder.com.au, says renters won’t be immune to higher housing costs.

"The big four banks announced increases to some of their investment home loans following new APRA guidelines.

 

"With the big four banks holding the majority of the market, national monthly rents could be set to increase by 2.80 per cent or $59 in higher rent per month if landlords pass on the full cost of the new interest rates on investor loans (based on the average home loan of $343,000 over 30 years),” she says.

“For low income households with one person on the minimum wage, this increase could account for 2 per cent of annual income (based on the national minimum annual salary of $34,158.80/$656.90 per week).”

 

Source：http://www.apimagazine.com.au/api-online/news/2015/08/renters-could-feel-apra-backlash