Perhaps the question most frequently asked of me is “Ray, when and where should I buy real estate?”
While I don’t have a crystal ball, for everybody looking to buy a home, interest rates on mortgages are something you should be keeping a keen eye on.
When the announced that it would keep the cash rate at the record low of 2 per cent, it was great news for buyers. A low cash rate gives people the chance to lock in fixed rate mortgages that will stay low and affordable. Homeowners who are selling will continue to experience a high amount of attention, especially in certain capital cities.
According to CoreLogic RP Data, real estate values in Sydney and Melbourne in particular have been enjoying striking growth, although there are signs that this rate of growth is now slowing. But even in the cities and regions of Australia where prices have been moderating, low interest rates will continue to fuel demand for property as home loans stay accessible. With these buoyant conditions, home sellers are likely to complete the satisfactory sale of your real estate in a reasonable timeframe.
Australia is enjoying the lowest rates since the 1950s which also opens up a window of opportunity to make those renovations you’ve been thinking about. Smart renovations will give your property that extra punch in an already sizzling market.
My parting advice to real estate buyers, sellers and investors is to be sure to take advantage of the low cash rate while you still can.