Interest rates 'scaring off' first-time buyers, says expert

Friday 31 December 2010

Article by Mozo

First-time property buyers in Australia are being put off investing by the threat of rising interest rates, it has been claimed.

Interest rates 'scaring off' first-time buyers

David Airey, president of the Real Estate Institute of Australia, said the prospect of higher rates is 'frightening' prospective buyers," ABC News reported.

The comments could encourage a number of Australians to compare home loans online to ensure they get a rate to suit their needs before taking the plunge and buying a property.

Mr Airey told the news provider: "The threat of interest rate rises is there. We are constantly reminded that the Reserve Bank of Australia may continue to increase prices, so I think it will be a very flat year for first homebuyers and that will hurt the construction industry and the new home market in particular," he said.

It comes after a series of experts said that it is a case of when and not if interest rates are hiked up over the coming 12 months, with some predicting a rise by February 2011.

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