A majority of homeowners who perform home renovations in the Perth area finance those renovations by taking out loans. From our point of view, there will never be a better time to renovate your home than now.
The RBA has once again chosen to leave the cash interest rate at a record-low 1.5%. They are currently satisfied with economic growth hovering around 3% and see no reason to lower the interest rate any further.
But how long will the RBA and the loan industry be happy with record low interest rates? If there is one thing we can state with certainty, it is that rates do not stay low forever. They are based on a model that makes it necessary for them to rise and fall dependent upon the economy. The way we see it, as soon as the economy shows signs of improving even a little bit, the interest rates will begin their inexorable march back to more traditional levels.
What This Means for Home Renovations
While the interest rate might not go up right away, it eventually will. The sooner you perform your home renovation, the more months you will get to pay lower interest rates. You will have the option of a fixed rate mortgage at a lower rate or a variable rate mortgage which will climb as the RBA rate does. Either way, the sooner you finance your home renovation, the less total interest you will pay.
Another factor is the price you will pay for home renovations. As the economy improves, home renovations providers will have to pay their tradies more money. This means your home renovations will cost more. Bottom line: the sooner you renovate, the less money you will pay.
If you are interested in home renovations from Perth builders who specialize in renovation work, call Next Level Extensions today. We will be happy to provide a free consult with award-winning home renovations designer Max Sardi. To learn more, call us today: 1300 948 094.
