The Reserve Bank of Australia cut official interest rates to a record low this month. Just 1.25 per cent. Of course, if you have your money in a high-interest savings account, a rate cut is terrible news. If the banks pass on the rate cut to you, your money will earn less interest than before.
Given the latest drop in interest rates for home loans dropping to around 3.5% and a term deposit only paying between 1.7% and 2.4% maybe your best time to invest in your home renovation is now?
If you have cash tied up in a term deposit or as a lump sump you can redraw, with interest rates falling now might be the perfect time to do that renovation you have been putting off. These are three key considerations about when deciding whether or not to renovate your own home.
Affordability: Do you have the funds available?
Seasonality: Can you get the trades at an affordable rate?
Timing: Do you have the time to commit to working out exactly what you want? No - then it might be good to book a design chat!