The Reserve Bank of Australia has decided to keep interest rates steady at 2.5 per cent at its July board meeting today (1 July).
REINSW President Malcolm Gunning said the decision to keep interest rates at historically low levels is creating opportunities for those seeking to purchase both residential and commercial property.
“It is a terrific opportunity for home owners and investors to buy residential property. Changes to lending criteria also mean it is a good time for business owners to purchase their own premises.
“Unlike residential property, commercial properties generally haven’t increased in price in the last five or six years. Combined with the relaxed lending conditions for commercial loans it is a great time for businesses to take the next step.
“However, purchasers of both residential and commercial properties should factor in interest rate rises and ensure that they can afford future repayments,” Mr Gunning said.
Interest rates have remained unchanged in 2014. The official cash rate has fallen 225 basis points since November 2011, with the RBA cutting interest rates twice in 2013 in May and August.
The RBA will next meet on Tuesday, 5 August 2014.
For further information or to arrange an interview with REINSW President Malcolm Gunning please contact Helen Hull at [email protected] or 0419 642 961.