Cash rate cut making investment even more attractive
Interest rates will always have a fairly big bearing on when you decide to buy a Queensland investment property, and current conditions could be just about right for anyone who hasn’t taken the plunge yet. The Reserve Bank of Australia (RBA) dropped its official cash rate to 2.25 per cent at the start of the month, which is the first time it has changed in a year and a half.
Following this many major lenders have cut interest rates as well, which opens up opportunities for home loans at better value and lower repayments – ideal conditions for property investment.
Investment rides high
In the RBA statement about the cash rate reduction, it was noted that more and more credit is being given out, particularly to investors. This is great news, as it shows confidence is flying high among those who want to make some capital gains through investing in property.
This is bolstered by banks reacting very quickly to the announcement. Westpac, the Commonwealth Bank, National Australia bank and ANZ all announced cuts to interest rates within a day or two of the cash rate cut, to take effect in the next few weeks. This will have buyers salivating at the prospect of negotiating an existing or new mortgage.
What’s more, the price of real estate is still rising and Brisbane is tipped for steady growth this year. While this is great news for those with property, it can create barriers for anyone who hasn’t bought yet. With reduced interest rates, a great deal of people will have a fighting chance of securing a fantastic investment piece to build a portfolio.
Queensland approvals still taking the high road
On top of this cash rate announcement, the Housing Industry Association remarked that dwelling approvals in the Sunshine State have kept on going up. There were 10.7 per cent more homes given the green light in 2013 than there were in 2014, which is great news specific to the state.
This was spread across detached dwellings and multi-unit buildings too, which means there’s a wide variety of property on the way for you to buy. And if lower interest rates come into play across the board, who knows what kind of dream investment you might be able to make this year?
Tailoring a property investment strategy to your particular situation is still key, however. With the right guidance and even the appropriate wealth coaching, you could turn these conditions into a ticket to financial independence.