Rate Cuts Needed To Stimulate The Market
There is little doubt that further interest rate cuts will have a positive effect on the property market. Property prices have stabilised and in some areas dropped, providing great opportunities for the savvy purchaser. Investors who have been cashing in on high returns by investing their money with the banks via term deposits will realize their returns are reducing rapidly and therefore will look elsewhere to maximize their returns. 12 month term deposit rates are falling rapidly with the banks reducing their 12 month term deposit rates since the start of the financial year by 18%. With property experiencing unprecedented high levels of rental demand forcing yields higher, its simple to see why more people are considering property as an investment option.
For the last 7 years renting has been the easiest and most affordable option, but now with interest rates falling and rents continuing to increase due to a lack of quality supply, thousands of potential homeowners (many now renting) will see this as an opportune time enter the residential property market. The NSW Home Builders Bonus is also a huge incentive, with all purchasers eligible to save on stamp duty. Most of Meriton’s developments are eligible to receive the full 100% concession, saving up to $22,490.
Investors should not be concerned about current tenants moving into ownership and leaving apartments empty because Sydney property is in short supply. As employment opportunities dry up around the world except here in Australia, we can expect net migration to increase further as well.
This extra surge of new found demand will have an immediate impact on property prices, as dwindling supply levels will struggle to keep up, especially within a 20km radius of the CBD.
With 10 prime locations to choose from and 1 exciting new development in Zetland due for release soon there has never been a better time to buy a brand new Meriton luxury apartment.