In just a short timeframe, the Aussie interest rate outlook has shifted significantly. From discussions of potential rate cuts, we now anticipate a ‘higher for longer’ scenario, driven by unexpected inflation figures and cautious economic indicators.

Despite notable progress in reducing inflation, challenges persist, particularly in sectors like healthcare, housing, and education. Housing prices continue to surge, with national dwelling values witnessing an impressive 8.7% increase over the past year. This surge is remarkable, especially given the ongoing economic pressures and high-interest rates.

Regional housing markets exhibit diverse dynamics. While some areas like Perth, Adelaide, and Brisbane experience rapid value escalations, others like Sydney and Melbourne display softer conditions. However, the overall housing market outlook remains positive, fuelled by persistent demand outpacing available supply.

Many economists still believe that interest rates will start falling in late 2024, which begs the question: should you buy a property now or wait for a potential rate cut? Or perhaps you are wondering about your refinancing options – hold out for a cut or refinance now?

According to Domain Chief of Research & Economics Nicola Powell, the key with property was not timing the market but time in the market. “If I were a buyer trying to buy, then I’d be thinking it’s now much more about the property than the state of the market,” she said.

“I really believe, having pored over 30 years of housing market data, that housing markets are cyclical, and you go through lots of periods where prices rise and then fall.”

“When you’re purchasing a property, it’s for a long-term investment and you are going to ride multiple property cycles, and that’s how you build financial wealth. So if I would give any advice, it would be to buy when it’s right for you. Housing markets are complex and often impossible to predict.”

I agree with the property experts on this one. My two cents, particularly when it comes to saving money on your finance, would be never make a decision based on interest rate alone anyway. A low rate is important but so is loan structure and loan features. You want to find a lender and loan product that fits your situation, not the other way round.

Unfortunately, there is no crystal ball when it comes to interest rates. If you review media commentary, you’ll note that even the economists are divided on projected movements. So where does that leave you?

If getting into the property market is on your agenda in 2024, take the first step and talk to a finance professional who can show you detailed home loan options in today’s market, from not just one or two but a decent selection of top banks and even non-bank lenders.

When helping my clients to find a better finance deal I provide a complete overview that covers everything from how much you can borrow to loan features, structure, costs and repayment options. I have access to over 60 lenders and hundreds of home loan products and there is definitely no such thing as one size fits all. It’s all about making sure you have all the information you need to compare options and negotiate a better deal relevant to market conditions.

Similarly, if you do want to look at ways to save on your current home loan or perhaps reduce your repayments, maybe it’s as simple as approaching your existing lender. Again, you still need to know how your current bank’s offering stacks up against the market and sometimes the help of an expert negotiator is all you need. That’s where your experienced finance broker comes in.

If you are considering your options around buying a new home or investment property or simply want to know if finding savings on your current loan is even possible for you in today’s market, simply request a call back by clicking the button below or feel free to text, call or email me direct.

Published 8.5.24