With economists tipping interest rates to remain on hold for an extended period of time, investors are expected to make the most of the current rate climate.
After yesterday’s decision from the Reserve Bank to leave interest rates on hold, many economists, including RP Data’s Tim Lawless, said they expected it to remain on hold for a majority of the year.
“I can’t see the cash rate being lifted this year,” said Lachlan Walker, Place Advisory director.
Mr Walker noted that there was currently a double whammy for affordability in Brisbane’s marketplace. In addition to the cash rate being kept on hold at historical lows for the past six months, real estate values were yet to take off again, he said.
According to Laing+Simmons general manager Leanne Pilkington, the decision from the RBA is sure to boost investor confidence and move some landlords from the sidelines into the playing field.
“The market is preparing for more stock to come on line over the next few months, so a steady rate environment is important to support the confidence of both buyers and vendors," she said.
“Likewise, the environment for investors remains attractive. With many agents preparing and launching their first campaigns of the year, the strength of demand from multiple buyer segments is encouraging.
“Affordability remains the most pressing issue in the housing market, particularly in Sydney, so the longer the Reserve Bank maintains the low interest rate environment the better,” she said.