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This year is shaping up to be a great year for those who wish to buy property. It’s not because there will be rapid growth in property prices in 2014 (the “property boom” is not here, yet) but I think the buying opportunities are almost once in a lifetime.
Firstly, interest rates are at historic lows. If interest rates drop any further, it will be this year and then there is only one way for them to go; up. You can take advantage of the current low interest rates by just taking out a variable rate loan or if you want to take the greatest advantage of these extremely low interest rates, you should be seriously considering fixing the interest rate on at least part of your loan.
With many medium term fixed rates below 5.5%, this is an opportune time to lock in relatively low mortgage repayments for a number of years.
Secondly, most property is cheaper today than it was a two to three years ago. Except for Sydney, Perth and Darwin, property prices in the other capital cities need to increase noticeably before they pass their previous peaks.
So, there you have it. It’s a great time to buy because you probably won’t see interest rates this low again and property prices won’t be dropping any further.
If the timing of your next property purchase is critical, 2014 is your year.