One of the biggest financial fears of home owners is that of their mortgage interest rate rising however the volatile price of fuel can have an equal effect on the family budget according to real estate expert Geoff Baldwin who points out that currently cheaper petrol is fueling mortgage relief.
He makes the relevant point that the price of filling up the average family car four times a month when fuel prices were at their peak was around $530 however recently this has come right down to under $400, a saving more than $130 a month or $1,500 a year.
“It could certainly be argued that cheaper petrol is fueling mortgage relief or at least, taking pressure of the family budget”, he said.
“It should also be remembered that many families are running two cars adding another couple of tankfuls each month.
“Savings through current lower fuel prices are equal to the interest rate on the average mortgage of $400,000 coming down by half a percent yet most people do not relate to this saving.
“In fact, if interest rates came down by another .5 percent it would almost certainly result in a reheating of the property market he said.
home owners who now run a strict household budget and as part of that budget they are funneling savings such as this straight back into their mortgage each month.
“The WA real estate market is starting to show signs of recovery with an increase in under offer and sold stickers and a significant lift in inquiries and viewings.
“One of the biggest influences on the market is affordability and with interest rates at record lows and fuel prices cheaper than they have been for many years, many households are now considering upgrading or buying a new home”, he said.