If you're looking at purchasing commercial property on the Gold Coast, no doubt you've been keeping an eye on the official cash rate announcements from the Reserve Bank of Australia (RBA).
Unless you're equipped with an incredibly healthy portfolio and currently the proud owner of substantial equity, you will most likely need to borrow finance to take advantage of the favourable conditions in the Gold Coast at the moment.
In fact, the annual Gold Coast Market Snapshot report from SQM Research shows that the property market in the Gold Coast is in very good stead. In the September release, SQM Research Managing Director Louis Christopher acknowledged that the market in 2010 suffered a "perfect storm" of untoward instances that resulted in a price crash.
"A lot of those events have now dissipated and right now, there are many favourable economic factors which are helping to improve the region," he explained. "So we believe Gold Coast property investors are likely to enjoy good returns, both in rents and capital growth for up to the next three years."
The October 6 cash rate decision will undoubtedly help buoy the market along further, as RBA Governor Glenn Stevens announced that the rate would remain at it's historic low level of 2 per cent, where it has been since May. So, what does this mean for you?
The decision from the RBA has many implications, but undoubtedly the most relevant to you as an investor interested in commercial property for sale on the Gold Coast, is the decreased interest rates.
This means you will have less interest to pay on your mortgage repayments, as Mr Stevens affirms the RBA is attempting to make monetary policy more accommodating in times when the national economy is a bit shaky.
He also noted that in addition to the rates encouraging borrowing and spending among Australians, the "prices for commercial property have been supported by lower long-term interest rates".
Being able to secure finance with low-interest could help you buy commercial property for sale on the Gold Coast.
The current lending conditions are ideal for someone who wants to invest in commercial property for sale in Surfers Paradise or the Gold Coast. However, nothing lasts forever, and there are some predicting that the end could be nigh.
The Commonwealth Bank asserts that there certainly is no case for any more rate cuts, as the economy is picking up momentum, with numerous factors contributing, including:
While these are all positive signs, it's likely that the rates will remain at their current level, at least until next year.
After considering all this information, you're probably wondering what's the best action to take. If you're interested in commercial property for sale on the Gold Coast and the rosy forecast, you should make hay while the sun is shining and take advantage of the favourable financial conditions.
If you wait too long, you could end up having to pay more interest on your loan, making your repayments harder to manage, which certainly isn't ideal!
You should talk to the team at Ray White if you are considering making the step into purchasing commercial property on the Gold Coast. With years of experience, we can work with you to help find the most suitable piece of real estate in relation to your financial position, future goals and target market.