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




Property News

Cash rate cut should assist those buying a property

June 05, 2012

There was good news for anyone thinking about buying a property earlier today (June 5), as the Reserve Bank of Australia (RBA) opted to reduce the cash rate by 25 basis points.

This will hopefully mean that mortgage lenders will lower their interest rates, effectively making the cost of getting on the property ladder more affordable for first home buyers.

It had been widely anticipated that a rate reduction was on the horizon, especially as financial conditions across Australia and the rest of the world started to decline.

RBA governor Glenn Stevens explained that as a result of previous changes to monetary policy, interest rates have started to decline for borrowers and are now below the medium-term average.

Not only this, but house prices started to stabilise at the turn of the year and have now started to decline again.

Figures from RP Data recently showed how residential property has become more affordable so far this year, declining by 1.2 per cent in the three months to April.

Over the past 12 months, prices fell by 1.5 per cent, suggesting now could be the best time to make a property investment.

 



Related Articles

How affordable are Australian homes?

When it comes to buying a house, affordability is one of the most important aspects for any buyer. ...
read more

Residential growth refusing to slow

New details in residential housing growth mean the economy's strength will continue in the ...
read more

Former industrial precincts to become residential hubs

The New South Wales government has announced plans to turn two former industrial areas in north ...
read more

Latest Articles

How is Australian investment faring?

Looking at the investment property market, it appears that the industry is thriving. The Australian ...
read more

Council calls for property reform

Buying a property comes with a wide range of fees and taxes, depending on where you buy and the ...
read more

Home values just keep on rising

Despite an alleged peak in home building having passed and a cooling in growth, there is still a ...
read more