In the lead-up to the Rio Olympics, a new Australian record has already been shattered, with the RBA once again cutting official interest rates from the historic low of 1.75% to an all-time low of just 1.50%.
This is on the back of the fact that the Australian property market remains strong. Knight Frank’s Australian Residential Review July 2016 indicates that, in the past 12 months, some regional areas have actually overtaken and eclipsed capital cities, with up to 17.8% growth over the past 12 months.
Property prices still increasing on the back of low Interest Rates
If you live in a city, there’s no need to panic according to Core Logic data, the Home Value Index rose by 0.8% last month, with the already strong city home prices rising 6.1% overall since one year ago.
So as we near spring, the traditional time for a reinvigorated interest in the property market, owners can rest assured their home will continue to be a safe investment.
The low interest rates are also welcome news for those looking to buy and will ensure the housing market remains buoyant for some time yet.
Elsewhere, there are other positive signs for the future, such as full-time jobs rising by 34,500 in June. Inflation sits at just 1%, the lowest it has been for 17 years.
Meanwhile, Australian tourism has proved to be especially lucrative – Chinese and Hong Kong tourists now outnumber all other visitors to Australia, spending a record $8.9 billion up to March this year, a 40% increase on the previous year.
Needless to say, if you would like any advice or want to know which lenders have the lowest interest rates, don’t hesitate to call your mortgage broker for advice.