Still good time to buy home: lender
March 3, 2009
It still looks like a good time to consider buying property, even though the RBA has decided to keep interest rates on hold this month.
As the RBA has decided to not reduce interest rates this month, it has brought to an end on consecutive rate reductions since September 2008.
For property investors that have been out there doing their home work on the property market, it is certainly offering some great buying options and real estate prices.
As the amount of first home buyers in the property market increases in activity, some extra work will need to be done when looking for the right priced property.
It is quite possible that the RBA is now on a wait and see approach to allow time for the recent interest rate cuts and the fisical stimulus from last year to have an effect on the Australian economy.
All of the recent interest rate cuts along with the boost to the first home owners grant, has led to an increase in the consumer confidence causing a lift in home loan finance demand.
Mortgage provider and broker Firstfolio Ltd says its business activity surged after the interest rate cuts and the central bank's decision to wait and see how things are going was appropriate.
Firstfolio chief executive Mark Forsyth said on Tuesday that the company's mortgage broking business, eChoice, had seen hits on its website surge to 15,000 a day from 6,000, after the Reserve Bank of Australia's (RBA) one percentage point rate cut in February.
