Low-end home loan holders see biggest benefits

Monday 23 February 2009

Article by Mozo

Aussies who are looking to sell homes worth less than $500,000 will gain most from first-home buyers grants and the Reserve Bank of Australia’s (RBA‘s) crusade against interest rates.

The Sunday Telegraph reports that the swarm of first-home buyers looking to make full use of the RBA’s rate cuts will help to push house prices in the Sydney suburbs and other areas where typical house prices are below half a million bucks up by as much as five or six per cent.

Meanwhile, richer Aussies on the Gold Coast and elsewhere have seen the price of their luxury homes plummet as demand at the top end of the market has collapsed.

Reserve Bank governor Glenn Stevens has recently indicated that the RBA is likely to keep having a go at interest rates in the coming months to provide further incentives for new buyers to get themselves a home loan.

He reckons that eager first timers will help to revive the overall housing market toward the end of this year.

The RBA will announce its next decision on interest rates on March 4th.

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