The recent interest rate cut provides relief for mortgage holders amid a broader caution.

The RBA’s latest move would suggest the need for caution given the subdued activity across the broader Australian economy, however locally our economy seems to be moving forward very nicely with good growth in many sectors.

For the real estate market, the latest interest rate cut supports a continuation of the relative stability we have experienced so far this year. Rates were already very low and the balance of power between buyers and vendors has levelled.

For those in a secure position to buy, this further rate cut provides a good opportunity to begin their mortgage journey at the bottom of the rate cycle. For vendors, demand remains robust for properly price properties.

Under the current conditions, mortgage holders should take the opportunity to have a closer look at their budgets and streamline their expenses.
Now is the time for people to take stock and put in place sound platforms for their future. It might mean shopping around for a cheaper interest rate, consolidating their debts, actually increasing their mortgage repayments if there is scope to do so, and looking at other ways to save on expenses.

For those who are serious about entering the market, their focus should be on growing their savings and taking the necessary steps to maximise their borrowing capacity.

Local builders are busy providing new homes with an increase of 29.1% in residential building approvals for the March 2016 Quarter. Demand has largely been driven by “Baby Boomers” relocating to the Coffs Coast along with a strong residential investment from a range people choosing property as their preferred investment vehicle. “Boomers” are looking to regional centres that have good infrastructures such as health facilities, airport, and general amenities.

Regional locations that can offer an appealing lifestyle with a comparatively low entry level are sought after and Northern NSW has four regions that meet that criterion and includes Coffs Harbour. Often you find they are searching for a home to live in as well as an investment property to provide income. Income returns from fixed term funds and shares are low at present so the property investment option is now being preferred.

Investors from around Australia have been monitoring our local property market and are now starting to see the value it represents and they are investing in a mix of property types.
Comparing the Rental Yields – The average gross rental yields for separate houses in Coffs Harbour was 4.5% in the December Quarter 2015, whilst the yield for units was 5.0%. By comparison, the average yields for the Greater Sydney region were 2.7% and 3.9%, respectively, for houses and units in the December Quarter 2015.