The RBA, maintaining a mood of stability, has today decided to keep interest rates on hold at an already low 2.5%, after a tumultuous 2013, with wild predictions from left and right (and a general election adding to the fervour), 2014 is beginning to look like a more settled year.
In many respects, the Australia economic outlook reflects the cautious optimism that many forecasters are predicting for the global economy – China, USA and Europe all picked up towards the end of 2013 and look set to continue improving fiscal conditions in the months to come.
In Australia, there are similar signs that a positive turning point has been reached. In a recent survey, NAB economists stated that “Business conditions recorded a surprising jump to a more than two-and-a-half-year high in December, supported by an environment of low borrowing rates, higher asset prices and less elevated Australian dollar.”
Extraordinarily low interest rates
Certainly, there is plenty of evidence that this is a good time for homebuyers and investors. “The current level of interest rates is extraordinarily low” says Commonwealth Bank senior economist Michael Workman “and they are doing what they usually do, which is stimulating housing lending, housing prices and construction.”
Anyone contemplating either entering the property market during this period of low interest rates or making further investments can be reassured that this is a good time to proceed. As ever, there’s no substitute for researching local trends beforehand, but there are sure to be excellent opportunities available for canny buyers.