Cash rate cut may improve rural prospects
The recent cash rate cut could prove a big benefit to both households and investors seeking new residential properties in more rural areas.
On November 1 the Reserve Bank of Australia (RBA) decided to reduce the interest rate by 25 percentage points - from 4.75 to 4.5 - in the first reduction to take place in 31 months.
The prime minister Julia Gillard quickly called for the major banks to pass on the change to end consumers.
Speaking to parliament, she stated: "Australian customers will [be] looking to their bank to cut interest rates in full."
This comes on the back of previous statements made by key industry figures concerned with the state of the nation's new housing sector - with the number of new homes sold in September down by 3.5 per cent compared with the previous month.
Acting chief economist at the Housing Industry Association Andrew Harvey said: "The September figures highlight the present soft conditions facing new home building."
A high proportion of new housing developments are known to be taking place in some of the country's more remote areas in response to increased demand for self-contained dwellings - however there remain the issues of affordability and accessibility.
This new rate cut could provide households and investors with added incentive to look more into purchasing a property in these rural areas.