The RBA decision to drop interest rates for the first time in 17 months has come and gone, but nothing seems to interrupt the constant attention being given to the growth in Sydney property prices.
It’s understandable, given that in the last year, average residential property growth in Sydney was 12.2%*, over double the rate of growth of any other Australian capital city.
Despite this fact, The Greater has noticed a significant shift towards investors seeking greener pastures and finding great value in investment opportunities in regional NSW. Recent data shows that (annualised) growth in The Greater’s investment loan portfolio is sitting at 10.4%.
This may be due to a number of factors.
- Firstly, investing in property in regional areas offers an attractive value proposition. For the 2013/14 financial year, the average sale price for homes in regional NSW was $389,000. With the average sale price for property in Sydney going for almost double that figure, regional areas can provide more bang for your buck.
- Secondly, rather than putting their money into cash, savvy investors are taking advantage of lower than usual interest rates and borrowing to invest in property.
Some economists are concerned that the Reserve Bank’s most recent rate cut may actually push average housing prices up, so if you’ve been thinking of buying your dream home or an investment property, now may be the time.
Fixed rate home loans are a great option for investors especially, as you can accurately determine the cost of your investment without having to factor in interest rate fluctuations.The Greater has recently cut its fixed interest rates twice in one week, and are well below the major Banks across all terms from 1-5 years. Check out our Investment Loans and see how our rates stack up.
We’ve been helping our customers reach their investment goals across regional NSW for almost 70 years, and we’ve recently been named Australia’s Most Loved banking organisation# by Roy Morgan Research for the second year running, so start a conversation with us today to see how we can help.
*Source - ABS. Data from Dec Qtr 13 to Dec Qtr 14. % Change. #Source Roy Morgan Research, 6 months to December 2014.