Are these the lowest interest rates since the 60s?
When you're looking to make a move into the Queensland property market, you need to plan your finances carefully. Buying a new home means looking out for capital gains, balancing out rental yields and making sure your mortgage payments all line up. And when the interest rates stay low, it means great things for this planning, because you can get mortgages at reduced cost and secure lower monthly payments.
And according to a few experts, right now is one of the greatest times to take out a home loan, especially with the Reserve Bank of Australia putting the cash rate on hold again this month. So maybe it's time you put your property investment strategy into action?
"The lowest mortgage rates since 1968"
Before the Reserve Bank of Australia (RBA) announced their official cash rate decision on March 3, a press release from CoreLogic RP Data gave some predictions about what was going to happen. It was noted that the cash rate cut last month brought interest rates to the lowest point they'd been at since 1968 – a sure sign that it's a good time to buy investment property.
It looks like a lot of people noticed this as well, because the press release revealed a powerful surge in auction activity, and record highs in valuations and other industry movements. It's a flurry of investment that was recognised by the RBA as well. Governor Glenn Stevens said that lending to investors has been on the rise, and it's a big reason why the RBA decided to keep the cash rate on hold.
This sort of boosted market activity has the potential to drive up prices even further, so there are clearly still some capital gains to be made out of the current interest rate environment.
A release from the Real Estate Institute of New South Wales said that the decision to keep the cash rate steady was a sign of an incredible time for real estate everywhere as even though prices continue to rise, buying a piece of property hasn't actually been this affordable ever before.
If that doesn't pique your interest in buying property, then I'm not sure what will. Buying a new Queensland home for investment means setting a long-term plan in place, and one that is likely to yield great capital gains in the long term, even if prices fluctuate in the short term.
Buy sooner, get the benefits later: Property can do wonders for you.