Whether you’re seeking residential or commercial property in Darwin, the Reserve Bank of Australia’s (RBA) May 6 decision to keep the official cash rate unchanged at 2.5 per cent could help you obtain more affordable financing.
Citing data regarding below-trend growth and high unemployment, RBA Governor Glenn Stevens said it made sense to keep interest rates stable for a prolonged period of time.
“Looking ahead, continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time,” Mr Stevens said.
“Inflation is expected to be consistent with the 2 to 3 per cent target over the next two years. In the board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.”
This means mortgage borrowers looking to invest in homes or Darwin commercial property have a better chance of locking in low interest rates.
It’s unclear how long the RBA’s current monetary policy will last, especially with the federal budget announcement approaching. With this in mind, entering the market now and taking advantage of current low interest rates may make the most sense for prospective property investors.