Friday, February 10, 2012

First Home Buyers Benefit from Unchanged Rate

An interesting article came out today that suggested that first homebuyers are actually going to benefit from the RBA's recent decision not to decrease interest rates. It is a perspective that I have forgotten about. Currently there is a lot of talk around the real estate market that house prices are about to go up. There seems to be increased activity on the sidelines with home buyers starting to look at buying in. All the market is waiting for is an excuse. An excuse to push up house prices.

This week, the RBA didn't give the real estate agents that excuse, choosing to keep the cash rate at the 4.25% rate. Had interest rates fallen, you should be hearing news that house prices have picked up again. If the interest rate drops 0.25% and inspires a meagre 3% increase in house prices, that would be an extra $15,000 for your $500k house - not worth the $83/month you save on the interest rate drop right?

Something to consider next time you cheer a drop in the interest rate :)

No comments:

Quick Poll: Are you currently

Most Read Posts