Stuart Zullo 
This week the RBA met, and again determined that interest rates would remain on hold at 3% for the 4th consecutive month. At this stage the major banks have left their variable rates unchanged, continuing the relief on Liverpool home owners and no doubt increasing the temptation for buyers.
Rising house and share prices are boosting consumer confidence, and retail sales in January suggested Australians are starting to spend more after a period of restraint. Despite this boost in confidence, experts are predicting that interest rates are likely to stay on hold for the remainder of 2013, with some room for more cuts if the economy needs further sparking in the future.
If you currently own real estate in Liverpool, this is no doubt music to your ears. In fact we’re sure many Liverpool real estate owners sleeping a little easier knowing that rates will be remaining low for at least another month. But of course if there’s one thing we know about the economy it’s to expect the unexpected.
Rather than using low interest rates as an opportunity to buy big and pay small, you may be better served by using the relief time as a saving period. Our advice is to enjoy the low interest rates, but rather than lashing out on an extravagant home on the edge of your budget, why not play it a little safer and aim for a mortgage that gives you a little bit of breathing space? And if you already own a Liverpool house, why not pay a little more off your mortgage every month than you need to? It’ll help you to build up some equity, and will ease the financial stress when rates do rise again in the future.