The all time lowest interest rates in Australia have made the investors to invest heavily in the residential estates. There has been a noticeable price rise in the real estate prices by up to 5 and 3.5 percent in Sydney and Melbourne respectively, over the last quarter. According to Robert Miller, MD BIS Shrapnel, there is an increase in the investor activity by 30 percent, as compared to last year.
Experts advise people not to rush
Shane Oliver of AMP Capital Investors advice the home owners to not be hoodwinked by low interest rates, as presented by the market. There are high chances that the buyers may end up losing money.
This trend will go on for some time, till next year as there are no signs from the Reserve Bank, to uplift the interest rates. In 2015 and the succeeding year, the prices may be flat or may even fall.
Plan your property
Kevin Lee, of Smart property Adviser, emphasizes home buyers on planning their dream house, within their means. The main concern while buying a property must be its location, budget and special privileges, such as the dispatch of government grants, while buying a property on the outside fringe.