Carpe Diem: Seize the record-low interest rates
With the interest rate at a record low of 1.5% according to the RBA, current and future investors are encouraged to pursue opportunity now. Maximising this financially affordable environment means that borrowers can commit to loan repayments. But is that what Australians are doing?
To seize or not to seize…
As of December 4, 2018, the Reserve Bank of Australia has announced the unchanged monetary policy at a stable record low 1.5% for the Australian market. Marking a 2 year anniversary for this cash rate, the Board are almost delivering a message; that this unchanged policy can benefit investors.
Through the downfall of equity prices in the Australian housing market, this rate can complement borrowers’ appetite to increase their hunger to invest (and potentially lend). Taking advantage of such a steady interest rates can be beneficial for future Australians as the advantages outweigh the disadvantages.
Beat the system: taking (calculated) advantage of these rates
The housing market in Sydney and Melbourne have been almost victim to this ongoing cash rate with a slight decline of owner occupied housing (falling by 1.2% from August 2018-September 2018). This, in turn, may deter investors from lending as inflation on a global scale and a slowdown in the housing market can create a dent in the repayment process.
But, there is a solution; investing in a professional, skilled and experienced lender can increase the potential of financial return on your investment. This is the most calculated action one can take when considering a strategic tactic when beating the fiery system of market-interest rates in Australia. Having financial advisory on board with your potential financial security allows for an analysis, assessment and evaluation of your current and future projections which may be the best investment you make before becoming an official investor.