I’ve got an idea that will not only give you a credible reason to contact your database, but also boost your reputation as an informed market leader.
The last time the Reserve Bank raised interest rates was back in November 2010. Since then, there have been 12 cuts. Sooner or later, there will have to be a hike – and there’s a chance it will be in 2018.
When it does come, you need to be able to respond with analysis of what this will mean for your local real estate market, whether that’s by posting a blog, a message on social media or sending a media release to your local paper. It also needs to be that very same day, otherwise everyone else will beat you to it.
How do rates affect my local market?
Wondering what a rate rise would mean for your local market?
Once the Reserve Bank increases the cash rate, banks will respond by lifting their home loan rates. This could make it harder for potential buyers to get finance. Raising rates can also prompt people to seek finance from a lower-cost lender, to help them afford a property that is achingly out of their reach. It could, in extreme circumstances, prompt someone to sell.
How to produce instant content
If you want to send out content immediately, you need to think like a journalist and prepare in advance.
The Reserve Bank announces its cash rate decision at 2.30pm on the first Tuesday of each month (with the exception of January). By 2.31pm, news outlets have already published long articles on the decision. It’s not that their journos are fast typists; it’s that they’ve already written one article in case rates go up, a second article in case rates go down and a third article in case rates stay the same.
While you could be overly studious and prepare something for every eventuality, the one that’s going to make people sit up and take notice the most is a rise to the official cash rate.
How to write your articles
You might want to start your blog post or media release like this:
“Earlier today, the Reserve Bank increased the cash rate to [number] per cent. Here’s what it will mean for [your suburb] real estate.”
Here are three free tools to help you write your content:
- Subscribe to RBA updates so the cash rate announcements get delivered to your inbox
- For how to write a press release, wikiHow’s tips aren’t a bad place to start
- Stay on top of what lenders decide to do following a cash rate announcement at RateCity’s rate tracker page
The next RBA meeting is Tuesday 6 March. While it’s highly unlikely the RBA will hike rates soon, it never hurts to be prepared.