Cash rate keeps favourable conditions for property buyers
July 2, 2014 / Written by Rich Harvey
House hunters in Sydney and beyond should be pleased with the Reserve Bank of Australia's (RBA) latest decision regarding the official cash rate.
RBA Governor Glenn Stevens announced on July 1 that the financial institution would be keeping the cash rate on hold yet again at 2.5 per cent.
"Monetary policy remains accommodative. Interest rates are very low and for some borrowers have edged lower over recent months," Mr Stevens said.
Meanwhile, it appears that the good times are here to stay, at least for the forseeable future.
"Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time," Mr Stevens continued.
"On present indications, the most prudent course is likely to be a period of stability in interest rates."
Malcolm Gunning, president of the Real Estate Institute of New South Wales, said that the RBA's latest cash rate decision is opening the door to numerous opportunities for property buyers in Australia.
In addition to residential property, changes to lending criteria have also made now an ideal time for commercial property purchases, according to Mr Gunning.
This has been helped by the fact that unlike residential real estate, commercial property prices haven't increased in the same way, offering buyers more affordability.
The increase in residential property prices was highlighted by Mr Stevens in his announcement, but as he pointed out, there have been signs recently that prices are starting to moderate.
However, regardless of prices and interest rates, having the right help in your corner to actually find and negotiate the purchase of a property remains essential.
Whether you're buying your first home or are on the hunt for commercial real estate, a qualified buyers advocate will help you find the right real estate at a fair price.