Real estate dealers are trying to ride on a growing culture of real estate investments among all strata of income-earners as people tend to believe the costs of their properties will be going up several times year after year. Low mortgage interest rates’ dealers too are in the best times of their lives as thousands of interested individuals put mortgage companies’ query machines and customer desks in heavy traffic.
The property bubble in Australia is starting to gain ground at the household levels. People are diverting their earnings to real estate investments hoping that later, their properties will be worth a dozen folds than its current value. Mortgage applications are piling up at approval desks of financing companies. Those who can afford to purchase current high-value properties dream even higher of more future profits than those which can settle on financing schemes.
But in the United States, mortgage interest rates have now reached to 4.58 percent, the lowest drop ever since half a century ago. Real estate brokers have been draining their sweats for hours each day with no one interested to avail of their units being sold. Those who have existing mortgage deals rush for refinancing schemes, but only a few can qualify. Since the US economy starts to shake, mortgages application policies have become stiffer even for those with decent earnings to date.
Those with enough savings to purchase real estate properties in Florida and other areas find the current post-bubble era a perfect time to buy units at very low prices. Several foreclosed properties come cheaper than ever. Those presently paying low mortgage interests can buy new homes, bigger and better, without moving up their current payables as new mortgage interest rates have now been quite low. Even those who want to retain their properties by refinancing to lower mortgage interests can enjoy the current conditions.
But Australians seem to disregard what is going one in the United States. Soon, when the property bubble in Australia busts, mortgage interests will plummet along with the market value of those properties being afforded to them in the real estate market now. So if you are in Australia, think again before you buy a house.
