Affordability brings first home buyers back
As the RBA drops the cash rate a further 100 basis points, first home buyers are seeing opportunities in the property market. Affordability at it's best for years, buyers are cashing in on the government grant and prospects of low payments on their mortgage. Population figures are still rising and with that rental demand creating a windfall for investors as rents increase by 10-20% pa in most cities. We have entered the next property boom - no doubt about it.
All the factors are in place for a strong property market over the next 2-3 years as yields increase and capital growth rises as investors and first home buyers return to take advantage of low interest rates, government grants and good returns.
Many tip the Reserve Bank to lower the cash rate by a further 75 basis points when they next meet in February.
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