Low interest rates entice Savvy Investors 01/05/2015
Value savvy Real Estate buyers are making the most of the lowest interest rates in modern history, by snapping up local real estate which is both attractive in presentation and price.
The Perth real estate market has seen significant changes over the past month.
In particular, smart investors are once again leading the charge in the buyer segment and taking full advantage of buying opportunities especially the ‘sharply’ priced properties.
Spurred on by incredibly low interest rates, they have once again seen ‘cap rate’ levels rise as a result of very attractive financing levels.
Whilst rents have reduced over the past 6 or so months, initially decreasing investment returns the reductions in interest rates have more than offset the disparity between the two.
So with investors—re entering the market place at an ever increasing rate, its extremely likely that the lower to mid property price categories, specifically the $350,000 to $600,000 range will see values increase over the coming months.