How Do Interest Rate Cuts Affect You?
At the beginning of this month, the major banks rushed to pass on in full the Reserve Bank’s 25 basis point cut to interest rates. The official interest rate is now the lowest on record since establishment of the RBA.
I often get asked how an interest rate drop such as this one will affect you, a potential buyer. Here are the top 3 questions which I am asked:
- If I’m buying or selling a property, is it still business as usual? Absolutely. The low interest rates have helped renew interest in most sectors of the Sydney property market.
- With lower interest rates, will property prices rise due to increased competition? Not always, but with the current interest rates, you will see more buyers at open for inspections, higher auction clearance rates and ultimately an upturn in price growth in many market sectors. As a buyer you need to avoid paying too much for a property due to increased competition. But, remember as the saying goes, “The best time to buy property in Sydney was yesterday.”
- How can a buyer’s agent help me get the property I want in the current situation?
Now, it is even more important to use a buyer’s agent. A buyer’s agent will:
- Ensure you are in a position to buy.
- Identify what the property is really worth and prevent you over paying.
- Find you properties that will sell at good prices and not over-inflated prices.
- Negotiate the best possible price for you. We will deal with the selling agent and bid at auction on your behalf.
- Make the process less stressful and emotional for you.
With a buyer’s agent on board, you are far more likely to secure the property you want, without missing out on your dream buy. If you have any more questions, maybe it’s time to get in touch with Buyers Domain to see how we can help you to get the home you’ve always wanted.