With more than 1.25 per cent wiped off the cash rate by the RBA since November 2011, and house prices and rental vacancies low, the Aussie economy may have created “the perfect storm” for purchasers to take the time to enter the market for the first time or extend their investment portfolio.
The Reserve Bank has responded to our subdued spending behaviour with some significant rate cuts of 1.25% since November 2011. And while lenders haven’t passed the whole lot on to customers, there has still been some good savings to be had, with their cuts averaging 0.96 per cent, saving the typical household with a $300,000 mortgage around $161 per month.
A recent report by Genworth shows consumer confidence has risen by 2.1 per cent. In other words, we are starting to feel like we can afford our financial commitments.
It is a good time for first home buyers and those looking for an investment to re-calculate their borrowing capacity and start to get serious with house hunting by talk to an expert Aussie Broker about what offers are out there from lenders.
For example; In NSW there are incentives to buying a newly built home with the first home owner’s grant doubling to $15,000 after October.
This means the current $7,000 grant will finish for first home buyers looking at buying established property – which means reviewing whether you can afford to buy before October (for an older house) is especially important.
With rental vacancy rates still extremely low, interest rates low, and larger metropolitan centres experiencing what some have termed a “housing shortage” it is encouraging for anyone looking for investment property. The investing prospect looks even better when considering state concessions and bonuses like NSW’s with bonus entitlement up to $5,000 grant for each new property up to $650,000 that they purchase.
How do you make sure you’re not overpaying for a property?
Getting the right deal is all about having the right information.
For a limited time only, Aussie is offering a FREE RP Data Property Appraisal Report* worth $89.95* when you meet with one of our expert Aussie brokers and undertake a home loan needs analysis.
The RP Data Property Appraisal Report gives you the stats to make the right decision about your next property.
When you have the right property in mind, Aussie can compare hundreds of different home loan products from up to 16 different lenders, it’s easy for us to find the right home loan for you.
*Property report accessible only during appointment. Conditions apply – see here. Offer may be closed with 4 week’s notice – check website. Must be 18+. Australian Credit Licence No. 246786.