Sep 28 - Written By Anna Stanford
The WA property market has soared in recent months, defying the industry expectations of 2020. Having emerged from the first recession in 30 years, Australian consumers are now looking at the housing market, questioning if now is the perfect time to upgrade or invest.
At present we are seeing strong and steady house price rises. An initial assessment in 2020 predicted that the average house price in Australia would fall by up to 20%, however they actually rose 0.8% in November due to a high performing economy. House prices have returned in the majority of capital cities to 2017 levels.
With the property outlook strong, it has sparked rumours that interest rates may rise as a result. Back in March 2020, the Reserve Bank of Australia cut the official cash rate at a record low of 0.1%, to ease mortgage holders financially through the uncertainty of the pandemic, but given the latest news surrounding house prices, news quickly began to spread that interest rates would follow suit.
However, the RBA have released a statement indicating it to be doubtful, that due to unlikely rise in wage growth along with world economic factors the outlook of a rise remained unlikely until at least 2024.
So, what does it mean, if you are ready to invest in the west or are a current homeowner?
Historically Australians have opted for a variable mortgage rate, however the introduction of lower margin fixed-rate loans means that landlords and homeowners are now looking at a viable alternative to variable deals.
Firstly, if you are looking to invest, the low interest rates make it easier to diversify your portfolio and buy more houses to lease, speak to one of our brokers, who will assess your current portfolio to determine if there are options to save on your current rates by consolidating or switching. This will help you save for your next investment or paydown existing loans. As part of the responsible lending, our brokers will also assess the impacts if the interest rates change and what the best solution is for you.
Secondly, if you are a current homeowner, our team of mortgage brokers can review your current mortgage rate and provide options for you to switch and save, or fix your rate to ensure peace of mind, knowing what to expect.
And thirdly, if you are a current homeowner who is looking at upsizing, our team will go through the steps with you to assess your responsible borrowing capacity. We will also work with you to ensure you have your finance approval in place to make a strong offer to secure your home in this fast moving and competitive environment.
So, whatever your situation, the team at Dream Freedom Financial are on hand to help you move in, move up and grow your property portfolio to make your dreams come true. Contact us today, https://dreamfreedomfinancial.com.au/contact
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