Is now a good time to buy property?

With the Reserve Bank of Australia (RBA) cutting the cash rate, interest rates have come down. So, is now a good time to buy property?

The answer depends on your unique circumstances and goals, but it’s always best to get a leg up on the property ladder sooner rather than later. Here are some compelling reasons to consider jumping right in.

Competitive interest rates

In February, the central bank lowered the cash rate from a 13-year high of 4.35% to 4.10%. Many lenders, including Australia’s big four banks, announced they would pass on the rate cut in full.

The average home loan interest rate is now around 6.24% p.a. for owner-occupiers. While rates are not as low as they were a few years ago, they have been decreasing recently, which is good news for prospective borrowers. Many lenders are also offering incentives such as free extra repayments, redraws, no application or ongoing fees, and annual rate discounts.

Increased borrowing power

With interest rates coming down, your borrowing capacity, may have increased. This means you may be able to afford a property that was previously just out of reach. For new borrowers on an average income with an average-sized loan, the change in the cash rate is estimated to have increased borrowing power by $9,000 to $10,000. Combined with tax cuts and easing inflationary pressures, borrowers may find themselves in a better financial position to borrow right now.

You can use our borrowing calculators (Net Income or Gross Income) to get a quick view of your borrowing capacity. For a detailed assessment, get in touch and we’ll crunch the numbers for you.

Rebounding property prices

Until the February cash rate cut, there were clear signs that Australia’s property market was cooling.

Over the past few years, property prices across the nation surged. Between March 2020 and January 2024, housing values increased 33.9% - or $239,000 - while units shot up 11.2 per cent (around $65,235). However, last year, property price growth slowed, with five of the eight capital cities recording a decline in values between July and December.

In February, national home values increased by 0.3%, breaking a short and shallow downturn that lasted just three months. Every capital city except Darwin recorded a monthly rise in values in February. If property prices continue to rise, it may be wise to fast-track your purchasing plans and take advantage of current prices while they last.

Ready to get started?

Deciding when to buy a home or investment property comes down to your personal financial circumstances and goals. However, there are many good reasons to consider purchasing right now.

Before you start house hunting, book a 10-minute chat with us about getting your finance pre-approved. That way, you’ll be ready to negotiate with confidence when you find the right property for your needs.