NEWS
Australians could find 2009 an opportune time to buy property, but they should not expect a swift recovery in housing prices.
Loan Market Group executive director John Kolenda says low interest rates and subdued property prices combined with Government initiatives have made entering the property market easier, particularly for first home buyers. Australian policy makers have provided stimulatory measures in the second half of 2008 to boost the domestic economy. Since September, the Reserve Bank has cut the cash rate by 3 percentage points to a seven-year-low of 4.25 per cent. In October, the Federal Government doubled the first home owners grant to $14,000 and increased it to $21,000 for buying or building a new home.
"Despite the global economic uncertainty, the conditions in Australia for those seeking to enter the property market are ideal,'' Mr Kolenda said. Overall, national housing prices are tipped to grow by 3 to 5 per cent over 2009 with major variations across the regions.
Source: news.com.au
Published: 18 January 2009
