The Reserve Bank of Australia has indicated that the low IRs for home loans will continue throughout 2014, which is good news for many householders.
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 end in buoyant real-estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for stockholders, householders and first house buyers of real estate SA," asserts Mr Moulton.
Moulton continues, "A low official cash rate and relative steadiness in interest rates enables purchasers to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to say that a period of stability for 2014 will be a boost for purchaser confidence, particularly where South Australia property has not been performing so strongly, and stability will keep up the momentum in other property 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 real-estate sa in the short to medium term.
Moulton claims that by indicating that IRs will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA market is intrinsically linked to the local South Australian economy, and particularly the Adelaide economy, due to home entrepreneurs 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 attempting 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 says that first home buyers of property sa are still much on the periphery of the real estate market, "First home purchasers of real-estate are really having to make some compromises or come up with some cutting edge ways to access capital. "
Moulton claims the reports for first home buyers in Adelaide is that price is an argument all over Australia, he claims that the other side of the coin for first house buyers of real estate in South Australia is that once they've a foot in the door of the property market, then they will 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 end in buoyant real-estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for stockholders, householders and first house buyers of real estate SA," asserts Mr Moulton.
Moulton continues, "A low official cash rate and relative steadiness in interest rates enables purchasers to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to say that a period of stability for 2014 will be a boost for purchaser confidence, particularly where South Australia property has not been performing so strongly, and stability will keep up the momentum in other property 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 real-estate sa in the short to medium term.
Moulton claims that by indicating that IRs will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA market is intrinsically linked to the local South Australian economy, and particularly the Adelaide economy, due to home entrepreneurs 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 attempting 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 says that first home buyers of property sa are still much on the periphery of the real estate market, "First home purchasers of real-estate are really having to make some compromises or come up with some cutting edge ways to access capital. "
Moulton claims the reports for first home buyers in Adelaide is that price is an argument all over Australia, he claims that the other side of the coin for first house buyers of real estate in South Australia is that once they've a foot in the door of the property market, then they will 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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