Mortgage rates 'could remain low' in 2014

By the resi financial blog team, 06 January 2014

Mortgage rates in Australia remain low in 2014

Buyers who have been on the fence about purchasing a property in Sydney may wish to take advantage of comparatively low mortgage rates and opt for the best fixed interest rates they can find.

The Daily Telegraph interviewed a number of prominent property insiders for their take on what will likely happen in the Australian property market next year, and Tim Lawless - national research director for RP Data - told the publication that mortgage rates could remain on the low side for much of 2014.

This, he noted, is good news for investors - and investment activity in the NSW capital is likely to be particularly strong in the months ahead as a result.

However, he also noted that with a median property price rising toward the $700,000 mark, Sydney is not always an affordable real estate option for those who are just getting their foot on the property ladder.

First-time buyers may struggle with Sydney's high property prices - RP Data figures released earlier this month for November 2013 show that the median property price in Australia's largest city stands at $640,000, more than $100,000 higher than the national capital city aggregate.

This, said Mr Lawless, could encourage first-time buyers to look further afield. Investors, he added, are also looking beyond Sydney properties - which have an average rental yield of 3.9 per cent - for higher yields in cities such as Brisbane, where the median dwelling price is $430,000.

Regardless of where buyers choose to invest, a fixed interest rate can provide excellent peace of mind - especially for those who like to stick to a budget, as this ensures that your monthly outgoings remain consistent.

Categories: Home Loans