No news is good news for mortgage holders and people with an eye on the property market. With Australian interest rates at an all time low, the Reserve Bank of Australia did as was expected, keeping rates on hold. The official cash rate stands at 2.50%.
Despite a ‘tough’ budget looming, experts insist that Australia has one of the healthiest economies in the world. Our inflation rate, unemployment and debt-to-GDP rates are the envy of other OECD countries.
Overseas indicators show positive signs as well, with the US economic data displaying improvement. Several European countries that have faced economic crises, such as Greece, also appear to be moving towards recovery mode.
Low interest rates sees housing market remain strong
As far as the property market is concerned, the traditional chilling of the weather also cools sales fervour. However, RP Data’s senior research analyst Cameron Kusher sees the housing market remaining strong, particularly in capital cities. He cites population growth as a key reason that the property market will continue to prosper. The increasing need for rental property, in particular, “…is why the market is now seeing a rise in dwelling approvals, on the back of low interest rates,escalating housing demand and rising home values.”
“It is likely that as the delivery of units increases there actually needs to be a greater number of units constructed in order to cater for population growth,” he states.
If you’ve been thinking about investment property, this should be music to your ears. With historically low interest rates, high demand in rental property the end of the financial year looming, perhaps now is the time to look at your options. As always, we’re here to share our expertise with you, so give us an obligation-free call.