Perth, WA – The Reserve Bank of Australia (RBA) held the cash rate at a record low of 2.5 per cent last week. Economists believe that the RBA is keeping rates down until late next year.
The Australian property market is still hot. It is expected that the RBA is waiting until next year to adjust the rates again. At that time, a hike in interest rates may be necessary to slow the wild exuberance in the property market and offset rising inflation.
These low mortgage interest rates won’t last forever. HSBC’s chief economist Paul Bloxham stated, “History tells you that the RBA doesn’t usually leave interest rates at a very low level for too long.’’
Aveling Homes builds new homes in Western Australia and notes that these economic conditions are the most favourable for taking mortgage loans on a new home.
Best Time to Buy
Low interest rates have kept Australian property buyers away from fixed rate loans for most of the past year. Borrowing is easier with low interest rates, and many Australians are able to borrow for homes that would have otherwise been unaffordable.
Lenders continue to offer ongoing discounts and borrower incentives to attract new customers. Many first time property owners are choosing to get into the housing market while loans remain low and affordable.
Variable rate loans remain the most popular option. In March, fixed rate loans only accounted for about 24 per cent of all housing loans. The rest of Australian property buyers opted for variable loans.
Hot Housing Market
Unemployment numbers remain low throughout Australia. Economic reports show signs of strong spending, especially in the housing and property market.
Housing prices continue to rise. The RBA reported that housing prices are up 10.6 per cent from last year. In Sydney, this gain was 15.6 per cent.
Aside from low interest rates and variable interest mortgages, home buyers can enjoy significant savings on home designs. Experienced home builders like Aveling Homes are able to construct quality homes with brand new appliances and furnishings at discount prices.
With all these options, Western Australians are in the best economic position for first time home ownership.
About Aveling Homes
Aveling Homes is an award winning home builder based in Perth dedicated to providing exceptional service. Find out more about our display homes and our house and land packages by contacting one of our representatives today.
Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.
Aveling Homes Contact Information
24/7 Metro Sales: (08) 6144 1000
24/7 Sth West Sales: (08) 9795 3444