Your borrowing power may have increased
With interest rates coming down, your borrowing capacity, or the amount a lender is likely to lend you, may have increased. In other words, you may be able to afford a property that was previously just out of reach.
For new borrowers on an average income with an average-sized loan, the change in the cash rate is estimated to have increased borrowing power by $9,000 to $10,000. That, combined with the tax cuts that came into effect from 1 July last year and the easing of inflationary pressures, may put borrowers in a better financial position to borrow right now.
If you’re interested to know what your current borrowing power is, get in touch and we’ll crunch the numbers for you.
Property prices have rebounded
Up until the February cash rate cut, there were clear signs that Australia’s property market was cooling.
Over the past few years, property prices across the nation surged. Between March 2020 and January 2024, housing values increased 33.9% – or $239,000 – while units shot up 11.2 per cent (around $65,235).
But last year, property price growth slowed. Five of the eight capital cities recorded a decline in values between July and December. In October, property prices peaked, then dropped 0.1 per cent in December.
In February, however, national home values increased 0.3 per cent, breaking a short and shallow downturn that lasted just three months. Every capital city except Darwin recorded a monthly rise in values in February. If property prices continue to rise, it may be wise to fast-track your purchasing plans and take advantage of current prices while they last.
Ready to get started?
Deciding when to buy a home or investment property comes down to your personal financial circumstances and goals. However, there are many good reasons to consider purchasing right now. Before you start house hunting, chat to us about getting your finance pre-approved. That way, you’ll be ready to negotiate with confidence when you find the right property for your needs.
