- October 7, 2010
- Posted by: admin
- Category: House prices, Interest rate
If we want to address Australia’s housing shortage then the Federal Government needs to lead from the front on a range of policy areas including further investment in skills and training, reform of the tax system, an end to excessive regulation, increased land supply, reduced planning delays, and ensuring greater competition in the banking sector so there’s adequate finance for development.
Data available suggests properties in the $500,000 to $700,000 range are expected to face the biggest price hike. This is good news for these property owners as this price bracket and above has taken a beating over the last 12 months. Not such great news if you are looking to purchase in this price range.
My suggestion would be buy now if you have the means.
While the RBA’s decision to leave interest rates on hold for a fifth straight month was great news it will be short lived. A home loan interest rate rise closer to Christmas may impact some markets.
Home owners again dodged the interest rate bullet this month, despite many people predicting a 25 basis point increase.
The Reserve Bank Board decisions in November and December will be largely influenced by employment and housing figures is my guess.