A Finance blog by Paul Bennion.
With fixed interest rates now falling below 6%, the long-term outlook for interest rates remains very positive and should give investors more confidence in purchasing properties.Fixed interest rates are generally a forward indicator of the general direction of interest rates and over the last several weeks, they have been declining quite rapidly.According to Brad Seymour, Head of Marketing and Retail at Yellow Brick Road Wealth Management, interest rates are now at their lowest level in several years.”Overall, we are entering a period of very low interest rates which is further underlined by the fact that the Reserve Bank cut official rates again during October.”With indications that the mining boom may have ended, the Reserve Bank is now cutting interest rates to encourage activity in the residential property market which is good news for investors.”As a result of these low interest rates, Yellow Brick Road has recorded a surge in demand for low interest home loans from property investors,” he continued.Paul Bennion, Managing Director of leading property depreciation specialist, DEPPRO added that strong population growth rates in recent years have also contributed to high demand for housing in many Australian states.”For example, during the March 2012 quarter, the population of Australia surged by over 300,000 persons, with the largest increase in population occurring in Victoria (82,500 persons), followed by Queensland (76,400 persons), New South Wales (73,500 persons) and Western Australia (73,300 persons),” Bennion said.
