Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Rate environment ripe for investors

05 February 2014 Steven Cross

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.

Rate environment ripe for investors
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Where is the biggest threat to agents in 2019?

3rd party lead generation companies
DIY models discounting sales commission
Prop-tech firms cutting out the agent value proposition
A yet unidentified proper disruptor – like Uber or Airbnb
None of the above. There is no threat.
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.