The Reserve Bank of Australia has indicated that the low interest rates for home loans will continue all though 2014, which is good news for many home owners.
Head of Harcourts for South Australia Greg Moulton says that the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is unlikely to change any time soon, will result in buoyant property sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for stockholders, house owners and first home buyers of real-estate SA," says Mr Moulton.
Moulton continues, "A low official cash rate and relative steadiness in interest rates enables everybody to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to say that a period of steadiness for 2014 will be a boost for buyer confidence, particularly where South Australia real-estate has not been performing so strongly, and equilibrium will keep up the momentum in other real estate SA markets that are already performing well. The governor of the Reserve Bank has to act in the best interest of the Australian economy and by leaving the official cash rate unchanged, the Reserve Bank is providing confidence to property sa in the short to medium term.
Moulton claims that by suggesting that interest rates will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA property market is intrinsically interlinked to the local South Australian economy, and particularly the Adelaide economy, due to home business owners drawing down on capital gain from their home and re-investing it into their business. "
The challenge for the Reserve Bank is to balance the good health of the economy with first home buyers who are endeavoring to get a foot in the door of real estate. Moulton points towards new stats out showing that first house purchasers make up just 9.9% of all mortgages issued in February and asserts that first home purchasers of property sa are still much on the boundary of the real estate market, "First home buyers of real estate are really having to make some compromises or come up with some innovative paths to access capital. "
Moulton says the news for first house buyers in Adelaide is that price is an argument all over Australia, he says the other side of the coin for first home buyers of real estate in South Australia is that once they've a foot in the door of the real estate market, then they'll be pleased with real-estate price growth.
Head of Harcourts for South Australia Greg Moulton says that the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is unlikely to change any time soon, will result in buoyant property sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for stockholders, house owners and first home buyers of real-estate SA," says Mr Moulton.
Moulton continues, "A low official cash rate and relative steadiness in interest rates enables everybody to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to say that a period of steadiness for 2014 will be a boost for buyer confidence, particularly where South Australia real-estate has not been performing so strongly, and equilibrium will keep up the momentum in other real estate SA markets that are already performing well. The governor of the Reserve Bank has to act in the best interest of the Australian economy and by leaving the official cash rate unchanged, the Reserve Bank is providing confidence to property sa in the short to medium term.
Moulton claims that by suggesting that interest rates will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA property market is intrinsically interlinked to the local South Australian economy, and particularly the Adelaide economy, due to home business owners drawing down on capital gain from their home and re-investing it into their business. "
The challenge for the Reserve Bank is to balance the good health of the economy with first home buyers who are endeavoring to get a foot in the door of real estate. Moulton points towards new stats out showing that first house purchasers make up just 9.9% of all mortgages issued in February and asserts that first home purchasers of property sa are still much on the boundary of the real estate market, "First home buyers of real estate are really having to make some compromises or come up with some innovative paths to access capital. "
Moulton says the news for first house buyers in Adelaide is that price is an argument all over Australia, he says the other side of the coin for first home buyers of real estate in South Australia is that once they've a foot in the door of the real estate market, then they'll be pleased with real-estate price growth.
About the Author:
Harcourts Soutgh Australia offer SA real estate for sale, land and homes for sale, rentals and commercial leasing, rural property sales, lifestyle real estate and business sales right across South Austrailia.
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