The time is right

The time is now right to buy property in Australia, especially if you are an investor, following the Reserve Bank of Australia's recent interest rate cuts, according to Monique Sasson Wakelin, Director, Wakelin Property Advisory...

Wakelin believes that the Australian property market has already bottomed out and is now starting to see growth, albeit small at this stage, with research from RP Data and Rismark International showing that the average price of a property in Australia having appreciated by 0.3 per cent in October.

Wakelin says, "The intent of the RBA and the Federal Government is quite clear. They have seen the damage done by falling property markets and a reversing wealth effect overseas and they are acting decisively to avert the same possibility here."

Most experts in Australia are projecting that official interest rates will fall to as low as 3.25 per cent by mid 2009, with mortgage rates falling from around 9.25 per cent to around 6.9 per cent.

This means that for a typical investor with a £150,000 mortgage, monthly repayments will have fallen by £250 in just a few short months, if rates are indeed cut.

"This combination of falling interest rates and rising rents presents a once in a generation opportunity to invest," Wakelin adds.

Source: www.homesoverseas.co.uk