In an article for the website Property Update, Kevin Turner talks about a few smart tips to make the most out of the low interest rate scene prevalent in Australia. Official cash rate has come down to a record-low of 2.25%, falling by a further 25 basis points last week. The big four banks have not hesitated any from passing on the benefits in full to the customers.
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Interest Rates Not to Rise Until Late 2015
Contrary to the industry predictions that interest rates could look northward by September, the National Australia Bank (NAB) suggests that rates are not likely to move until 2015’s last quarter. John Batsick reports for an article on the website The Adviser.
Australian property market may not catalyse the upward movement of interest rates, believes NAB. The momentum will definitely come but in the last minutes of 2015 and it will be due to the repercussions emanating from the US federal reserve.
A flurry of foreign investments might also be among the pleasant impacts of the Federal Budget.
You can read the original article here.
What is your prediction on the interest rates?
Housing Data Indicates Unchanging Interest Rates
An article published in The Adviser talks about the potent mix of ‘spending cuts’ and present housing data; a combination which is sure to keep the interest rates pretty low for some time to come.
The market, argues the article, is stabilising and this augurs well for the existing climate of low interest rates. Finance commitments for dwellings have shot up by 19% compared to March last year; with owner occupiers’ share increasing by 11.8% and investors’ share shooting up by 32.1% over the same time-frame. This said, the commitments when compared with February 2014 have mellowed down a little on all fronts.
Need for established houses and new ones have both seen an upward curve since last year. To reiterate, this is good news for all of us expecting the rates to stay where they are.
You can read the original article here.
What do you make of the fluctuation in the fixed rates?
Comprehensive Credit Reporting Won’t Miss Your Good Performance
When we soft landed into the internet territory a couple of decades ago, our lives became a lot more transparent and out on public display. Truth be told, we do not like the way we can be judged online many a times but there are considerable advantages, too. Take the comprehensive credit reporting for instance.
Fixed Rate Loans May Still Be an Enticing Option
While writing a piece for the website realestate.com.au, Venessa Paech talks about borrowers’ growing penchant for variable rate loans. They are quite willing to shun off the lure of fixed rate loans believing that the ‘variable rate’ stuff will offer them greater benefits in the long run.
Interest Rates to Remain Unchanged
The Australian government expected reduced cash rate to bolster the ailing construction industry and real estate. In many ways, they were proven right and in the last year we have had many reasons to be joyous in this regard. Sydney is passing through its best real estate phase in a long time and the reduced cash rate has a lot to do with it.
