The Reserve Bank of Australia has indicated that the low IRs for home loans will continue throughout 2014, which is welcome news for many property owners.
Head of Harcourts for South Australia Greg Moulton claims that the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is not very likely to change anytime soon, will end up in buoyant real-estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for speculators, house owners and first house buyers of real estate SA," asserts Mr Moulton.
Moulton continues, "A low official cash rate and relative equilibrium in rates enables everybody to plan in advance and gives certainty to real estate sa decisions."Moulton goes on to assert that a period of stability for 2014 will be a boost for consumer confidence, particularly where South Australia property has not been performing so strongly, and stability 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 says that by suggesting that interest rates will remain low throughout 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA real estate 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 purchasers who are trying to get a foot in the door of property. Moulton points towards new statistical data out showing that first home purchasers make up just 9.9% of all mortgages issued in February and asserts that first home buyers of property sa are still much on the periphery of the property market, "First house buyers of real estate are actually having to make some compromises or come up with some leading edge ways to access capital. "
Moulton says that the reports for first house purchasers in Adelaide is that affordability is an issue all over Australia, he says that the other side of the coin for first home purchasers of property in South Australia is that once they've got a foot in the door of the real estate market, then they are going to be pleased with real estate price growth.
Head of Harcourts for South Australia Greg Moulton claims that the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is not very likely to change anytime soon, will end up in buoyant real-estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for speculators, house owners and first house buyers of real estate SA," asserts Mr Moulton.
Moulton continues, "A low official cash rate and relative equilibrium in rates enables everybody to plan in advance and gives certainty to real estate sa decisions."Moulton goes on to assert that a period of stability for 2014 will be a boost for consumer confidence, particularly where South Australia property has not been performing so strongly, and stability 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 says that by suggesting that interest rates will remain low throughout 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA real estate 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 purchasers who are trying to get a foot in the door of property. Moulton points towards new statistical data out showing that first home purchasers make up just 9.9% of all mortgages issued in February and asserts that first home buyers of property sa are still much on the periphery of the property market, "First house buyers of real estate are actually having to make some compromises or come up with some leading edge ways to access capital. "
Moulton says that the reports for first house purchasers in Adelaide is that affordability is an issue all over Australia, he says that the other side of the coin for first home purchasers of property in South Australia is that once they've got a foot in the door of the real estate market, then they are going to 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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