Low Cash Rate To Fuel Borrowing Activity
An article on the website realestate.com.au says that the Reserve Bank of Australia is considering cutting down the interest rate by a few more basis points to strengthen the low-growth areas. Dwindling Australian dollar, shaky import figures and sub-par performance of GDP is making the RBA think along these lines. Economists agree that the low rate of inflation gives the leverage to RBA to do so.
What is heartening to know is that our country is performing a lot better than many of the advanced economies around the world.
You can read the original article here.
First Home Buyer activity has picked up
The first home buyer activity has already picked up amidst speculations regarding a further drop in the cash rate. In the month of May, 52% of the enquiries for homes have been made by the FHBs; this augurs really well for the property market.
Aided by the New Home Owner Grant Scheme and low interest rates, the FHBs are willing to take a serious dive into the real estate scene.
All the buying hierarchies are getting active
The owner-occupiers, investors and those seeking refinances are assuming this to be a one-time opportunity too. Really low fixed-rate options are prevailing in the market presently and this provides further incentive for buying a new house.
Low interest rate is the greatest incentive
Low interest rate, I feel, is the most handsome incentive for any buyer. It reduces the pressure of home mortgage by a long margin. Consumers who have been cautious for a long time since the Global Financial Crisis are willing to put their foot on the accelerator.
Lenders suffering from the low valuation scene for an eternity are now waking up to the opportunities provided by low cash rate. Take my word; many homes across Australia are going to lose their “For Sale” tag shortly.
Are you planning to take advantage of the low interest rates? I invite your opinion.