Whether you are buying a house for self-occupation or buying a house for investment, you must be careful.
Both those who have bought a house or those who plan to buy a house are probably very concerned about the future housing price trends.Today I want to talk about a prediction made by an Australian official agency: The Reserve Bank of Australia said that in the next three years, Australian house prices may soar by 30%!
In 2020, an unprecedented new crown epidemic hit Australia's economy severely. In order to stimulate economic recovery, in November last year, the Reserve Bank of Australia (RBA) adjusted the interest rate to 11%, which hit a record low!In addition, three of Australia's four largest banks have reduced their standard variable interest rates below 0.1%.
Because of the above conditions, RBA built a model to make predictions and concluded that in the next three years, Australian house prices will rise by 30%! RBA also pointed out: “At present, a large part of the credit growth comes from people who buy houses for self-occupation. In recent months, the activity of first home buyers has increased significantly, which shows the enthusiasm of young families to buy houses.” From October 2019 to 101, RBA lowered interest rates by 0.9%. In order to stimulate the economy, RBA currently adopts a policy called "quantitative easing", which is explained by Encyclopedia as follows:
Looking at the final summary, "quantitative easing" can be simply understood as "indirect additional printing of money."Last month, RBA President Philip Lowe emphasized that the current low interest rate level will remain for some time. He said: “Based on the outlook for the future, the board of directors does not expect to raise the cash rate for at least three years.”
The RBA also revealed the criteria for raising interest rates: the unemployment rate fell back to 5%!However, according to the monetary policy released in November last year, the unemployment rate will return to this level, at least until 11.
Regarding the trend of future housing prices, we have another report from MicroSydney a few days ago: Due to the epidemic, working at home has become the new normal. A large number of professionals have fled from big cities. Some coastal towns with convenient transportation and beautiful scenery are favored by them. "Son of the Chosen", prices have soared.
Buying a house may be the biggest expense in most people's lives. Whether you are buying a house for self-occupation or buying a house for investment, you must be cautious. You must make the best choice after considering your own needs and external factors!Of course, rich people who don’t care about buying a house can be self-willed...
Editor: Xiaoyin, Melody (The pictures on this topic are all from the Internet)
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