The Reserve Bank of Australia cut down the interest rates in February 2015 to the lowest they’ve ever been for several generations. With these low interest rates, investors have been at the forefront when it comes to buying established houses and apartments, mainly in metropolitan Sydney and Melbourne. Aside from economic growth for the country, residents should also jump onto the amazing opportunity of these low interest rates.
Low Interest Rates – Take Advantage While You Can
So what can you do with these current low interest rates?
Some people are taking advantage of the interest rates by getting ahead on their home loans and repayment schedules. If you act now, you can potentially reduce two years from the entire length of your home loan. So if you’re paying off your mortgage, speak to your broker about reviewing your repayment schedule to take at least two years off with the low interest rates.
Some Australians are using low interest rates to get into investment property. Some investment properties yield better than the 3 percent yields on cash. Investment property is always one of the sure fire ways to grow your money. So why not get an investment property loan with these low rates to get ahead in the game.
With these low rates, people can have more savings, speed up their mortgage repayments and have overall cheaper refinance and investment property loans.
One of the main factors that may hinder such opportunities would be employment. If you lose your job after taking on new loans to pay off old debts, your debts will only grow with no way to pay them back. So you will need to try your best to hold on to your current job until a better job offer comes along.
So for the time being, use these low interest rates to find cheap loans or pay off existing home loans and other outstanding debts. Better yet, with enough research you can even find the best deal from all your available loan options to fund an investment opportunity. If you need help resolving any old debts, contact Clean Credit Debt Resolutions for advice you can count on.