The decision by the Reserve Bank of Australia (RBA) to cut the country's official cash rate from 0.25% to an all-time low of 0.10% has been hailed by real estate figures.
Philip Lowe, governor of the RBA, on Tuesday announced rate cuts to manage unemployment and support economic growth as the country goes through its first recession in nearly 30 years.
Adrian Kelly, president of the Real Estate Institute of Australia (REIA), said the move "will certainly benefit homebuyers."
“Today's drop in interest rates, if passed on, would reduce the share of income needed to meet loan repayments to 33.9%,” he said. declared. “Yesterday's data on housing finance showed that September recorded the fourth consecutive monthly increase and the highest level since October 2009 thanks to improved consumer confidence in buying a home, especially among first-time buyers. Lower interest rates today will increase the interest of buyers. "
Kelly's sentiment was echoed by Tim McKibbin, Managing Director of the Real Estate Institute of New South Wales (REINSW). According to McKibbin, the current low interest rate environment is supporting "strong buyer demand" and that the RBA's decision to lower the official spot rate even further is "good news for existing mortgage holders and those looking to buy a property, including first-time buyers ”.
"Some major lenders have anticipated the latest RBA cut by cutting their own rates in recent weeks, and the market is hoping all major lenders will follow suit," McKibbin said. "Low interest rates will play a key role in our economic recovery."
Meanwhile, Peter Martin, visiting scholar at the Crawford School of Public Policy at Australian National University, wrote in The Conversation that the RBA announcement could mean "low rates for a long, long time." .
"Australia's inflation rate has not been between 2% and 3% sustainably for over half a decade, and it probably will be at least as well. long until he gets back there, if ever, ”Martin writes in The Conversation. "By tying the future of the cash rate to a real inflation rate rather than sentiment about the rate of inflation, Governor Lowe ties the bank to a near cash rate zero as far as everyone can see. This means that not only will it be as cheap as ever to borrow (for a mortgage, a business, for anything), but it means there is no risk whatsoever. suddenly changes because the bank receives a rush of blood to the head.
Top suburbs:
miller
,
balga
,
spearwood
,
Murdoch
,
Marrickville
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in real estate, it is important to ensure that you not only have the lowest available rate possible, but also have the right loan features for your needs. needs.
You only need to fill in a few details below and we will then arrange for a local mortgage broker to contact you and determine what features or types of loans are suitable for your needs. We'll even help you with the paperwork. In addition, an appointment is free.
We value your privacy and take all your information seriously – you can check
our privacy policy here
