Before we dive into things this month I just want to highlight a couple of great offers available at the moment; the first is a variable loan with an interest rate of 6.45%, the other is a 3 years fixed rate loan at only 5.99%.
Competition is still high and lenders are regularly coming out with new interest rate specials as well as other incentives. If you would like to know whether you could get a better deal on your loans please don’t hesitate to contact us. Remember we’ll do all the work for you and it won’t cost you anything.
Variable rates recently dropped thanks to the November rate cute by the Reserve Bank of Australia however new research has found it wasn’t enough to drag potential home buyers back to the market.
The CBA/MFAA Home Finance Index for September found the ratio of respondents planning to buy property in the next 12 months had fallen to only 16.9 per cent, down from 21.6 per cent in January 2011.
However, pessimism about property markets – due to fear about debt and the state of the economy – is matched somewhat by positive factors: with a 25% of home owners putting away nearly a quarter of their take home earnings, up from 21.8 per cent in January 2011.
Mortgage stress is also down. Those struggling to meet repayments have decreased from 25.7 per cent in May to 17.5 per cent in September. Unfortunately buyer reluctance is reflected in current price expectations, with 46.4 per cent of people predicting lower house prices next quarter, more than double the 20.9 per cent recorded nine months ago.
Overall consumers are pulling back from buying property however they are behaving in a way that will put them in a strong position to act when confidence returned. With a recent interest rate cut, high savings and low mortgage stress, prospective home buyers are in a relatively good place financially.
As you take a moment to read this month’s news, remember Urbantech is always as close as your phone!
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