The Reserve Bank of Australia has dropped the official cash interest rate by 25 basis points to 1.5 per cent.
Hopefully all of Australia’s lenders follow suit and pass on the latest interest rate cut.
Why have rates fallen?
This has been brought about by another weak inflation reading as well as economic uncertainty in the local and global economy.
Regardless of what happens over the short to medium term. It’s is important to realize that home loan interest rates are sitting at record lows not seen since the 1960’s.
Interest rates are one of the most important factors affecting the residential property market.
When rates rise, the amount borrowers can afford to pay for a property falls and if rates rise too high, owners with a large mortgage may be forced to sell.
It’s now the opposite, which is helpful to you.
What’s this mean for me?
If you are a buyer.
You can likely stretch yourself and borrow a bit more.
Buy that slightly larger or better home that you and your family have dreamt of.
Lock in historically low interest rates. Depending on your age, either ask your parents or grandparents about this. It’s a great idea to talk to them anyway, so use this as an excuse.
Thank me later when you’ve had a good chat to them, they’re smarter thank you may think.
Interest Rates have not been this low since The Beatles came to town. (If you don’t know who they are… Google them.)
If you are a Seller.
Even better news! Because, If you are selling & buying, you have the direct advantages described above as well as those below.
Buyer Demand is Strong
Competition amongst buyers as they are keen to buy! More buyers are likely to enter the market, so you’ll have more competition from purchasers to buy your property.
There is less competition from other sellers
Little current housing stock on the market… DO NOT WAIT UNTIL SPRING!
Refer to a previous Article: Why Sell Before Spring!
Buyers have less houses to choose from.
The process will be quicker
Lenders are keen to lend, though their procedures are slower than ever.
Overall as less business is being done, the whole process will take less time.
There’s never been a better time to move up
You can lock in interest rates for historically low rates and move into that dream home sooner or simply sell up and buy the smaller place and bank the difference.
It’s time to get on with your life
What’s your Why? What’s the real reason for a move?
That’s for you to answer and it’s probably a great reason.
So, What’s holding you back?
Call us today for an accurate, no B.S. appraisal.
Call your Bank or Credit Manager or Finance broker next…
Your Home SOLD in 90 Days or Less or We SELL it for FREE
To find out more, you’re welcome to call 08 83961100 and arrange a chat.
Alternatively Book a Free Consult or Get Your Home Value Here.
Feel free to browse the rest of our Blog for more tips tricks and helpful info you can use.
Not sure of some of the terms & meanings used? Check our comprehensive Glossary.!
Thanks for reading…
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Regards Eriks & Team Plaza Real Estate