The Reserve Bank of Australia has pointed to the fact that the low interest rates for home loans will continue all though 2014, which is pleasant news for many property owners.
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 not very likely to change any time soon, will end up in buoyant property sa for 2014. "Maintaining the official cash rate at 2.5% is excellent news for stockholders, householders and first home buyers of real-estate SA," asserts Mr Moulton.
Moulton continues, "A low official cash rate and relative equilibrium in interest rates enables everybody to plan in advance and gives certainty to property 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 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 suggesting 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 interlinked to the local South Australian economy, and particularly the Adelaide economy, due to small 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 attempting to get a foot in the door of property. Moulton points towards new statistics out showing that first home buyers 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 housing market, "First home purchasers of real estate are truly having to make some compromises or come up with some cutting edge paths to access capital. "
Moulton claims the news for first home buyers in Adelaide is that price is an argument all over Australia, he says the other side of the coin for first house buyers of property in South Australia is that once they have a foot in the door of the housing market, then they are going to be pleased with property 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 not very likely to change any time soon, will end up in buoyant property sa for 2014. "Maintaining the official cash rate at 2.5% is excellent news for stockholders, householders and first home buyers of real-estate SA," asserts Mr Moulton.
Moulton continues, "A low official cash rate and relative equilibrium in interest rates enables everybody to plan in advance and gives certainty to property 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 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 suggesting 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 interlinked to the local South Australian economy, and particularly the Adelaide economy, due to small 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 attempting to get a foot in the door of property. Moulton points towards new statistics out showing that first home buyers 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 housing market, "First home purchasers of real estate are truly having to make some compromises or come up with some cutting edge paths to access capital. "
Moulton claims the news for first home buyers in Adelaide is that price is an argument all over Australia, he says the other side of the coin for first house buyers of property in South Australia is that once they have a foot in the door of the housing market, then they are going to be pleased with property price growth.
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