Property Finance Is Cheapest In 50 Years

Property Finance Is Cheapest In 50 Years

Just announced, the RBA has dropped the cash rate by 0.25%. Home buyers and property investors have a once-in-a-lifetime opportunity to secure finance at interest rates that are at their lowest or more than 50 years.


With major banks offering loans at interest rates as cheap as 4.79 per cent, smart buyers are getting finance to trade up the property ladder, buy their first home or expand their investment portfolio. Owner-occupiers in many suburbs can buy a property for not much more than the weekly cost of rent and investors can go close to gaining a neutrally geared investment.


First home buyers of new properties are also cashing in on the upgraded first home buyers grant to $10,000 and Victoria’s 40 per cent cut in stamp duty from July 1. Finance specialist Rachael Krstic, of Home Loans Australia, said property had become more affordable as interest rates dropped to their lowest levels since 1960. “For owner-occupiers, mortgage repayments are not much more than the cost of rent in many areas,” Ms Krstic said. “For investors in Croydon or Croydon Hills for example, we’ve got clients who are getting rental returns of 4 per cent, and with interest rates not much more than that, they are not very much out of pocket.“They are buying an asset that appreciates in value, so purchasing an investment is more attractive than ever.”


Home Loans Australia is affiliated with PhilipWebb and Ms Krstic spends time in the PhilipWebb offices helping buyers to gain the best finance for their needs. Part of her role is to help PhilipWebb clients to secure the best loan at the best price in a seamless system that removes the stress for buyers. Ms Krstic said many clients were choosing fixed interest rates, or to fix part of their loan. Data from Westpac shows there has been a “spectacular” increase in home loan approvals to buy new homes, including apartments bought off-the plan. Loans for “construction related” finance jumped 21 per cent in the first three months this year, said Westpac’s Bill Evans.


The number of new loans was up 13.8 per cent in the same period, he said. Property expert Terry Ryder, of hotspotting.com, said national figures for home loans, sales volumes, price movements, building approvals and affordability suggested a steady and sustainable recovery to the property market.


Now’s a great time to either get into the property market or take the next step in your investment portfolio. Call our Doncaster office today on 9842 1477 and allow us to put you in touch with one of our Finance Specialists.


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