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Significant reductions to the cash rate may have had an impact as more Australians plan to choose property over shares in 2009.
A recent poll has found that 42 per cent of respondents said buying property was their financial priority for 2009. In contrast just six per cent said they planned to invest in the share market in the year ahead.
These results showed lower interest rates and softening property prices were driving Australians to look for opportunities in the housing market. The Reserve Bank of Australia has slashed the cash rate to a seven year low of 4.25 per cent and it’s expected to go even lower and that is obviously encouraging for both people with mortgages and those looking to enter the market.
The increase in the first home owners grant to $14,000 or $21,000 for a new property is also expected to have a huge influence on the market. With lowering interest rates and increases in the grants, there really hasn’t been a better time for a first home buyer to look to get into the market.
Currently there are rates available on the market at 3.99% and with rates tipped to be cut another percent in the ensuing months, renters are finding it more affordable to purchase their own property and investors are finding it easier to locate positively geared investments.

For further information please contact Brad Nolan of Eastern Financial Solutions on 0410574505 for a no obligation free review of your options.

This information is only the views of the writer. It is advised that everyone seeks their own independent advice before obtaining any type of finance. Interest rates quoted may be changed at any time by the lenders.