Australian Property Market: The Components
As countries became more civilised and modern, they started to develop economic sectors and industries. Among the industries is the property market. The Reserve Bank of Australia understands that four factors make up the market. The elements include interest rates, investments, rents, and prices.
When you purchase a home, the house has a price. The home seller sets the price and the market dictates if the price is correct, too low, or too high. Investors help drive the market in 2021 more than they have in the past. Investors own an estimated 10% of Australian homes. In some cases, they can determine the rents that others will face. So, investments play a role in the property market too.
Finally, there are interest rates to consider. When interest rates are high, home buyers are tougher to find. Locking themselves into a 30-year commitment with an interest rate that adds several thousand dollars is too much for some. Therefore, the RBA tends to lower the rates to stimulate the economy.
Mortgage House remains an innovator in the lending market. We offer tools that offset high-interest rates. Plus, we offer an array of home loan products and calculators such as the home loan calculator. Our loan specialists help individuals become homeowners in any market type.
Australian Property Market Conclusion
The Australian property market is a series of components. For home buyers, it’s important to find their dream home. It’s also worth purchasing a starter home when the market doesn’t favor homebuyers. Mortgage House helps homebuyers and investors fund their purchases. For home loan product information, contact our loan specialists.