People are more optimistic about what the future has in store, results of the latest ANZ-Roy Morgan Consumer Confidence Index suggest. The figures show a 1.7 per cent increase in confidence during the week to May 10 compared to the previous seven-day period.
Analysts believe this is the result of the Reserve Bank of Australia’s decision to cut the official cash rate (OCR) to an all-time low of 2 per cent. This has brought down the cost of borrowing and brought relief to certain parts of the economy – and consumers are feeling the benefits.
As a result of the OCR reduction, more people might be inclined to go in search of property investment loans. The confidence index reveals that consumers’ views of their own finances are improving and are now at the highest level since February.
If they’ve been holding back to wait for a good time to enter the property market, then now could well be it. The index also found that consumers are more optimistic about their future finances, which bodes well for anyone with their eye on a long term investment opportunity.
Next week’s figures will prove interesting reading, as people’s reactions to the federal budget announcement are analysed. The Property Council of Australia suggested that the real estate sector will play an important role in helping the country meet its economic growth targets, especially now the mining boom has largely ground to a halt.
Property investors will therefore play an important role in making sure demand for homes is maintained, as will anyone going in search of their first home loan. Construction is a standout performer of the Australian economy at present, and every effort will now be made to make sure this can continue.
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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.