The old adage of ‘feast or famine’ seems to apply to interest rates, as the Reserve Bank of Australia has just announced another cut to the cash rate of 0.25%, bringing official cash rate to the new record low of 1.00%p.a. Once again, all eyes will be on the banks to see if they pass on the full amount to mortgage holders.
As we hit the half way point of 2019, there are signs that the Australian property market has stabilised and we should see a growth in prices as the traditional spring market hits.
Interest Rates cut has Stabilised the Market
Consequently, now is a great time to look at how your greatest asset could be improved and consider how you may be able to add maximum value for a small investment. Solid value-adds can make a home more desirable to buy (and easier to sell). Here are a few options:
- Granny flat/studio. This extra living space is becoming even more popular in Australia. The term ‘granny flat’ doesn’t do it justice – this separate area for teens, visitors or the in-laws can also be used as an office/studio/shed. It can even provide extra income if used as a home share. In view of the number of ‘off the shelf’ single dwellings you can buy (and even build yourself), it’s worth thinking about.
- Carport/garage. If your home doesn’t have one, it’s worth considering as many people are also looking for extra storage space. A garage ticks off another box for potential buyers.
- Wardrobes. Purchasers will look at built-ins in main bedrooms as a plus, because it’s one less thing for them to worry about.
- Add a kitchen pantry. Yes, a pantry isn’t the norm in Australia – which makes homes that have one stand out.
If you have any questions regarding tosay’s interest rates announcement or your mortgage, don’t hesitate to give your mortgage broker a call.