If you're considering taking out a construction loan in order to build a new home, you may be happy to know that private housing approval rates rose 1.5 per cent during May – indicating that now could be a fantastic time to pursue these goals.
There was a further one per cent increase in the number of dwellings approved over the month.
The Australian Bureau of Statistics (ABS) has found that the total number of private sector housing approvals throughout the country has grown, with Australian Capital Territory seeing the largest increase of 4.1 per cent.
Furthermore, Tasmania (3.6 per cent), Western Australia (2.7 per cent), South Australia (1.8 per cent), Victoria (1.2 per cent) and New South Wales (0.8 per cent) all experienced increases in their approval ratings.
These rises could signal a return of consumer confidence to the real estate market.
Peter Jones, Master Builder Australia's (MBA) chief economist, said in a statement released July 4 that this was a positive shift – with approval ratings increasing 9.9 per cent in the five months to May this year.
"Low interest rates and the recent fall in the dollar should boost confidence and lead to improved residential building condition[s]," Mr Jones said.
This increase in approval rates coupled with the recent announcement by the Reserve Bank of Australia to keep the cash rate unchanged at 2.75 per cent could mean now is the perfect time to take the plunge and invest in a construction loan for property investment.
If you're looking for a great home loan to suit your personal circumstances, the best way is to get in contact with a mortgage broker. The team at Smartline will be able to provide you advice and guidance in order to find the right home loan for your needs.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
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.