1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Property News

Cash rate cut may improve rural prospects

November 02, 2011

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.

Related Articles

Rural property confidence survey results

Farmers on rural real estate have reported subdued confidence, but do have some things to cheer ...
read more

How buying a property can affect your health

Figures released from the Australian Bureau of Statistics (ABS) last week (June 7) show that the ...
read more

Rural property owners to benefit through Rescue Reef program

Rural property owners in Australia will see a further $200 million of assistance in an extension of ...
read more

Latest Articles

Reductions to Queensland business regulation expected to boost investment

The Queensland government has been dedicated to reducing the amount of red tape surrounding the ...
read more

Approval numbers for dwellings rose across Australia during February

Buying land and building residential property is a great way to establish yourself in the real ...
read more

Potential investment opportunities arise from capital city value growth

Australia's capital cities have undergone some impressive dwelling value growth over the ...
read more