now is the time to build in Perth
Families and couples considering building a new home will be delighted by the latest announcement from the Reserve Bank of Australia (RBA).
Once individuals have decided to construct a new home building, they'll need to arrange the appropriate finances to cover the costs of land and construction. Fortunately, it appears that record low interest rates are set to stay, thanks to the RBA's decision to keep the official cash rate at 2.5 per cent.
Housing Industry Association (HIA) Chief Economist Harley Dale commented on the decision in a June 3 statement, paying particular attention to the recovery in Australia's residential construction sector, which is a good sign for the national economy.
"It is encouraging that today the Bank confirmed the message that interest rates are on hold for a considerable period of time. A period of stability will maintain a positive environment for residential construction activity to boost economic growth throughout 2014 and into next year," explained Dr Dale.
"Today's interest rate statement hopefully reduces the recent elevated level of conjecture, and therefore uncertainty, regarding the direction and timing of the next interest rate move. This uncertainty is itself unhelpful for the sustainability of a residential construction recovery."
It appears that the cash rate will stay low for some time, with RBA Governor Glenn Stevens predicting "a period of stability".
Mr Stevens pointed out that that balanced economic growth is apparent, with an accommodative monetary policy helping future growth.
It's expected that inflation will remain in line with the 2-3 per cent goal over the next two years.
With low interest rates and some of Australia's best builders located in Perth, building a new house may certainly be on the cards.