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The
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Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

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Cash rate announcement to bring joy to buyers

February 4, 2015 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

It's not quite hell freezing over, but the Reserve Bank of Australia (RBA) has a nice surprise awaiting anyone looking at Australian investment property: a lowered cash rate. 

For the first time in 18 months, the RBA has moved this figure down by 25 basis points, to 2.25 per cent. This is a big move, and one that will probably have some significant impacts on everyone after that dream Australian property investment. So what exactly does the big move mean?

A shot in the arm

In the February 3 rate announcement, RBA Governor Glenn Stevens noted that the Australian dollar had declined, the Consumer Price Index was at a low and commodity prices have declined, all of which needed some measure of action. In response, the Reserve Bank board deemed it appropriate to cut the cash rate, as a stimulus. 

In a media release responding to the RBA announcement, the Housing Industry Association called the rate cut a well-timed boost to an economy that was experiencing sluggish inflation.

"The RBA Board have today cut rates to provide an opportunity for the economy to grow at a stronger rate than might otherwise have occurred," said HIA Chief Economist Harley Dale in the February 3 statement. 

This could see growth continue in many areas, enabling house hunters to find great real estate opportunities with the help of a buyers agent. 

Building boost

A specific area of the economy expected to benefit from the rate cut is building construction, according to Mr Dale. 

"A further 'touch down' to interest rates will help maintain very healthy levels of new home building while hopefully broadening the base of Australia's economic growth," he said. However, he expressed concern that any macro-prudential measures could hamper confidence in the wider real estate market.

Overall, this looks to be great news for investors in Australian property. With home prices still one the rise in Sydney and other opportunities popping up in Brisbane, a lower cash rate could help you secure an even better home loan. 

Of course, once the finance is sorted you'll need expert advice to choose the right property for your needs. The RBA notes that lending to investors is still on the up, showing more competition among buyers with the same interests. Contact a buyers' agent to get the edge on the competition and purchase some great positive cashflow property, and keep 2015 going strong as another thriving year in real estate. 

The Propertybuyer
Podcast

 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.