Property investors spurred on to buy
The Reserve Bank of Australia’s Melbourne Cup Day announcement of a 0.25 per cent cut in the cash rate has increased consumer confidence in the real estate market.
The RBA gave Australia some direction and good news. Rate cuts are a positive stimulus for the broader economy and for the real estate market.
The RBA cash rate was cut by 0.25 per cent (or 25 basis points) after being on hold for 12 months. It was the first cut since the Global Financial Crisis in April 2009.
The drop to the 4.5 per cent official cash rate was good news for investors with mortgages as each 0.25 per cent drop in interest rates reduces the monthly repayment of a typical $300,000, 25-year Australian mortgage by around $50 if lenders pass on the cut in full.
LJ Hooker Finance was pleased to pass on the full rate cut to new
LJ Hooker home loan customers. Variable interest rates start from 6.44 per cent p.a. To find out more, call 1300 515 200 or visit
The rate cut helps property owners repay their loans sooner and may build a buffer in case of any unforeseen circumstances. Many finance specialist have been in the media stating if you can keep paying off your loan at the same rate as you have done for the past year – do it.
The RBA decision immediately gave investors increased confidence in purchasing property, which is very good news for property owners.
Many are anticipating the likelihood of subsequent cuts by the RBA.
The long-term outlook is positive for all properties no matter what price range they fall in.