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Low interest rates spur the market

By Louise Morrin

As a current owner or prospective buyer of property in Carlton, you're likely already familiar with the low interest rates that are on offer. 

While these rates have opened many doors for people on the fence about buying homes, they're actually having another effect, too. 

The Residential Property Prospects, 2014 to 2017 report from BIS Shrapnel highlighted that the affordability low interest rates are providing will "maintain further price growth" in the property market. 

This is a result that'll put a smile on the face of many investors, but how long will it last? Angie Zigomanis, BIS Shrapnel senior manager, said interest rates will have this effect "for now".

Mr Zigomanis expects house prices to decline in 2016/17 when interest rates will start to rise. 

"The current standard variable rate of 5.95 per cent is, outside of the GFC emergency low interest rates in 2009, the lowest level in over 40 years," Mr Zigomanis said.

Already, properties in Sydney have seen substantial price growth. Over the year to May 2014, median dwelling values rose by 16.6 per cent.

This puts median prices in the state capital at $678,500. With BIS Shrapnel predicting more growth in the next two years, this could mean great things for existing home owners looking to sell. 

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