Lower rates encourage buyers
CONSUMERS are being encouraged by a lower interest rate environment to invest in the property market, a national survey has found.
The Loan Market poll which asked "Are you planning to invest in property over the next 12 months?' found 88 per cent of respondents were looking to buy real estate.
Fifty one per cent of the 786 respondents to the online poll said they were seriously looking at property while rates were heading back to historical lows and 37% said they were keen to but want to be sure about issues such as job security.
Just 5% of those surveyed said they had no plans to purchase property while 7% said they would rather invest in the share market.
Loan Market corporate spokesman Paul Smith said successive monthly reductions in official interest rates by the Reserve Bank of Australia had been good news for consumers as well as the home finance, retail and property sectors.
Mr Smith said the RBA reducing the cash rate to 3.50% over the past two months had helped restore consumer confidence.
"These rate cuts have also taken the variable interest rates offered by most lenders down below the 6% mark," he said.
"Home owners are seeing significant reductions in their mortgage replacements while there are very competitive rates on offer for those looking to enter the property market."
Mr Smith said continuing concerns about the European debt situation and the slowdown in China meant the RBA could again lower the cash rate over the next few months.
"The big positive for consumers who have been wary of economic conditions and dealing with cost of living increases is that they don't need to be concerned about interest rates rising any time soon," he said.
"Mortgage holders should be taking advantage of this favourable interest rate climate and boost their home loan repayments if possible."
