The Reserve Bank of Australia has suggested that the low interest rates for home loans will continue throughout 2014, which is good news for many householders.
Head of Harcourts for South Australia Greg Moulton says the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is unlikely to change any time soon, will end up in buoyant real estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for investors, householders and first house buyers of real-estate SA," says Mr Moulton.
Moulton continues, "A low official cash rate and relative steadiness in IRs enables everybody to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to claim that a period of stability for 2014 will be a boost for consumer confidence, particularly where South Australia real-estate 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 real estate sa in the short to medium term.
Moulton says that by meaning that interest rates will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA market is intrinsically connected 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 house buyers who are attempting to get a foot in the door of property. Moulton points towards new statistics out showing that first house purchasers make up just 9.9% of all mortgages issued in February and says that first home buyers of real-estate sa are still much on the periphery of the real estate market, "First home buyers of real estate are actually having to make some compromises or come up with some leading edge paths to access capital. "
Moulton says that the news for first home buyers in Adelaide is that affordability is an issue all over Australia, he claims that the other side of the coin for first home purchasers of property in South Australia is that once they've a foot in the door of the property market, then they are going to be pleased with real-estate price growth.
Head of Harcourts for South Australia Greg Moulton says the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is unlikely to change any time soon, will end up in buoyant real estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for investors, householders and first house buyers of real-estate SA," says Mr Moulton.
Moulton continues, "A low official cash rate and relative steadiness in IRs enables everybody to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to claim that a period of stability for 2014 will be a boost for consumer confidence, particularly where South Australia real-estate 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 real estate sa in the short to medium term.
Moulton says that by meaning that interest rates will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA market is intrinsically connected 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 house buyers who are attempting to get a foot in the door of property. Moulton points towards new statistics out showing that first house purchasers make up just 9.9% of all mortgages issued in February and says that first home buyers of real-estate sa are still much on the periphery of the real estate market, "First home buyers of real estate are actually having to make some compromises or come up with some leading edge paths to access capital. "
Moulton says that the news for first home buyers in Adelaide is that affordability is an issue all over Australia, he claims that the other side of the coin for first home purchasers of property in South Australia is that once they've a foot in the door of the property market, then they are going to be pleased with real-estate price growth.
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