According to Hotspotting, the Perth market is the strongest it’s been since it lapsed into downturn five years ago. Vacancies are down, rents are rising again, sales activity is up and 40% of suburbs have median prices higher than a year ago. Hotspotting notes that recovery is under way, and with the RBA taking a remarkable step of slicing 0.25% off the official cash rate, driving it down to a new record low of 1.25%, this could mean now is the time to look for value in suburbs where prices are rising, or in nearby suburbs where values are yet to trend up!
This is fantastic news for many homeowners or homeowners-to-be! If you’re on a fixed rate, probably not a lot will change. But if you are thinking to buy or invest in a property soon, then it’s likely you’ll expect lower home loan repayments and handy spare cash to manage your household budgets.
The million dollar question is how much impact the 0.25% rate cut will have on average home loan rates?
Here’s how much you may save on your home loan repayments, based on the average home loan rate if you were to purchase one of the house and land packages at The Heights Kardinya, as an example:
Commonwealth bank, Macquarie Bank, NAB are among the many banks which have cut interest rates in full 25 basis points – with possibly many more to come! (Check if your bank passed the RBA interest rate cut)
Plus, the banking regulator - the Australian Prudential Regulation Authority (APRA) – is moving to ease lending restrictions, which will make access to finance easier in the very near future.
Additionally, Western Australia’s annual population growth of 0.88% is the fastest rate for over three years. This should support the WA property market as we head into the future.
Get a leg on a rung of the property ladder today!