Mortgage Broker in Rockingham Says, “Take Advantage of Low Interest Rates Now Before it is Too Late.”
Announcement posted by Smartline Rockingham 04 Dec 2014
Mortgage broker in Rockingham reveals why the RBA’s decision to keep interest rates at 2.5% may represent the last great opportunity for prospective home buyers and investors.
Rockingham, WA, 4 December 2014 - Recently, the RBA made the decision to keep the interest rate at a record low 2.5% for the 14th straight month. The Board made its decision based on flagging consumer confidence, which they cited as being down 4.6% in September. They also cited a “flat” housing market in September, which saw housing sales in the capital cities increase by just 0.1%.
However, housing prices are currently 9.3% higher than they were twelve months ago. In addition, all capital cities have produced at least some growth. Auction clearance rates continue to come in at over 70%. This indicates that the lowered interest rates are having the intended effect: stimulating the housing market.
Other factors in the Australian economy are looking up. The dollar continues to fall, giving Australia a better “edge” in international trade, especially resource industry exports. If the resource industry has an upward trend again, it will stimulate every portion of the WA economy, much as it did when it insulated WA from the worst of the Global Financial Crisis (GFC).
Housing Market and Interest Rates
Justin Smith, principal mortgage broker at Smartline Rockingham, feels that housing prices and interest rates will begin to rise again by the end of 2015. According to Mr Smith:
“To put it succinctly, property always rises and record low interest rates can’t last forever. Even with the market levelling off in September, the median price rose 9.3%. In Rockingham, where homes cost less than in the overall Perth market, the average home was $405,000 last year. This year, that same home would sell for $439,000 for a capital gain of $34,000.”
Mr Smith continued: “When you add in the fact that interest rates are still at an all time low, it is apparent that anyone with the wherewithal to purchase their first residence or first investment home should think about setting the wheels in motion as soon as possible. Housing prices will rise and interest rates will rise. Those who wait are going to lose money by doing so.”
The RBA has stated on numerous occasions that they lowered the interest rate and are keeping it low to stimulate the housing market. When the market becomes healthy enough, they raise the rates to keep the market from growing too fast. The question in the minds of most observers is how soon the housing market will become healthy enough that the RBA raises interest rates back to average levels again.
Mr Smith concludes: “We are going to say exactly what we said last year. The combination of prices and interest rates will never be this low again. Every month someone waits to buy a home will probably cost them money.”
Smartline Rockingham offers home loans, personal loans and other financial products. Their mortgage brokers are knowledgeable and friendly, with extensive experience in the Rockingham area. To learn more, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.
However, housing prices are currently 9.3% higher than they were twelve months ago. In addition, all capital cities have produced at least some growth. Auction clearance rates continue to come in at over 70%. This indicates that the lowered interest rates are having the intended effect: stimulating the housing market.
Other factors in the Australian economy are looking up. The dollar continues to fall, giving Australia a better “edge” in international trade, especially resource industry exports. If the resource industry has an upward trend again, it will stimulate every portion of the WA economy, much as it did when it insulated WA from the worst of the Global Financial Crisis (GFC).
Housing Market and Interest Rates
Justin Smith, principal mortgage broker at Smartline Rockingham, feels that housing prices and interest rates will begin to rise again by the end of 2015. According to Mr Smith:
“To put it succinctly, property always rises and record low interest rates can’t last forever. Even with the market levelling off in September, the median price rose 9.3%. In Rockingham, where homes cost less than in the overall Perth market, the average home was $405,000 last year. This year, that same home would sell for $439,000 for a capital gain of $34,000.”
Mr Smith continued: “When you add in the fact that interest rates are still at an all time low, it is apparent that anyone with the wherewithal to purchase their first residence or first investment home should think about setting the wheels in motion as soon as possible. Housing prices will rise and interest rates will rise. Those who wait are going to lose money by doing so.”
The RBA has stated on numerous occasions that they lowered the interest rate and are keeping it low to stimulate the housing market. When the market becomes healthy enough, they raise the rates to keep the market from growing too fast. The question in the minds of most observers is how soon the housing market will become healthy enough that the RBA raises interest rates back to average levels again.
Mr Smith concludes: “We are going to say exactly what we said last year. The combination of prices and interest rates will never be this low again. Every month someone waits to buy a home will probably cost them money.”
Smartline Rockingham offers home loans, personal loans and other financial products. Their mortgage brokers are knowledgeable and friendly, with extensive experience in the Rockingham area. To learn more, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.