Let’s just wait and see what happens. On the first Tuesday of each month ( except in January) the Reserve Bank of Australia (RBA) board meet to decide on whether to decrease, maintain or increase the official cash rate for the month ahead.
This official rate influences how the Banks will set their interest rates.
The larger than expected rise in the inflation rate has ‘the experts’ once again predicting the rate to rise for the first time since November 2010.
But a rise is not a fait accompli and for those looking to buy land to build a new home, a rise can largely be inconsequential to your end goal.
Interest rates rise to control the rate of inflation. The higher the inflation the more we pay for basic goods and services which has numerous societal effects. So in that respect ‘within reason’ higher interest rates are not necessarily a bad thing.
However this noise emanating from the capital city’s has done nothing to quell the feverish battle for land across the Land Man Estate’s in the Toowoomba Region.
Karara Gardens at Wyreema is all but gone, just a few Lots remain at Santana Park at Cotswold Hills, the latest offerings at Lilyvale Estate at Meringandan West are being snapped up while 37 Lots are now sold in Stage 1a at The Summit at Cranley.
On top of this, the entire Stage 1 at The Pinnacle at Kearney has just about been secured before its official release and new Estates are on their way.
And on the investment front, Toowoomba’s ‘in crisis’ vacancy rates has massive calls for new rentals to be built. We need more rentals! Don’t hesitate to contact us on investment opportunities as we are very selective in this area due to the focus of Land Man Estates being on owner occupier buyers in order to build progressive communities.
The fact remains that rates are at an historic low plus first and new home builder incentives and grants remain in place and are on the agenda of both major political parties.
In regards to politics, the traditional slowing of sales during an election period is currently not being seen and post-election I would not be surprised to see land buying activity surge further.
This may even see the land prices rise through the supply and demand issue that continues to remain prevalent in the Toowoomba Region due to the slow release of land by Council.
A factor that may also inadvertently contribute to a land sales surge is a drop in house prices.
House prices are tipped to fall as the year progresses which puts understandable doubt in the mind of buyers who fear securing a second hand home only to see its value quickly drop. Last week I read that a 2% increase in interest rates could result in a 15% decrease in the price of homes.
This makes Buying Land to build a new home that marries up with your lifestyle and budget, an even smarter option.
The glorious outlook from the Summit at Cranley
And right now repayments for building a new home on a Land Man Estate can be cheaper than what you are paying for rent.
