Every month, the Reserve Bank of Australia (RBA) gathers to decide on one of the most important economic drivers in the country: the cash rate. On 3 November, the RBA did this once again, and elected to hold the cash rate at two per cent. If you've been keeping tabs on the financial industry, you might know that this is a record low that has persisted for six months straight.
So how does this affect people hunting for real estate in Bentleigh?
For one, you can expect interest rates to remain low and affordable for the time being. It should be noted, however, that some major financial institutions like Westpac have raised rates on variable home loans for investment recently. This was in response to the Australian Prudential Regulation Authority (APRA) applying pressure on banks around the country to ease lending.
Still, rates are lower than in previous years, meaning the ship has not sailed for house hunters after real estate in Bentleigh. Furthermore, these restrictions have been in place to primarily target investors. According to the Housing Outlook for 2015 to 2018 report released by QBE, investment loans make up 50 per cent of all residential finance.
By making entry into the market more difficult for this group of buyers, the APRA aims to remedy the overcrowding in Sydney and Melbourne's property scene. This in turn should help cool the searing hot price growth experienced by these cities. So if you're seeking a property to live in, there's a good chance you can still benefit from record low rates depending on the lender.
With interest rates still relatively low and investors having to give way to owner-occupiers, there are plenty of reasons why it's a great time to buy real estate in Bentleigh. While price growth has been slowing, there is still potential for great capital gains nonetheless. Get connected with Matt Hurlston and the team at Ray White Carnegie to see how.