FIND YOUR LOCAL BUYERS' ADVOCATE:
    TALKS & PODCAST           CALL US CALL US
1300 655 615
 
 

The
Propertybuyer

Podcast

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

 
Wed 22 Nov '23 with Rich Harvey Using Data & AI for Better Property Decisions
 
 
Thu 7 Sep '23 with Rich Harvey Northern Beaches Real Estate Outlook & Industry Trends
 
 
Thu 20 Jul '23 with Rich Harvey How Sales Agents Think
 
 
Thu 15 Jun '23 with Rich Harvey Auctions – The Inside Scoop
 
 
Fri 9 Jun '23 with Rich Harvey Financing Innovation & Building a Property Portfolio
 
 
Thu 25 May '23 with Amanda Jones Melbourne Property Insights
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

Who is mad about the cash rate?

April 8, 2015 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

As the Australian dollar declines, many economists and would-be fortune tellers have been predicting a cash rate cut from the Reserve Bank of Australia (RBA) would arise this week. In a Jacob Greber piece published by the Australian Financial Review from March 31, it was noted that a cut this week could also be followed by another in a few months, taking the cash rate below 2 per cent.

But of course, predictions can run awry - or at least be a little premature. The RBA decided on April 7 to keep the cash rate stable at 2.25 per cent, citing moderate growth in both local credit and the global economy. It has raised some vocal reactions from big names in the property industry - so who said what, and is it really going to impact your Australian property purchase

Many happy returns

The Real Estate Institute of New South Wales, for one, is pleased with the outcome. In a statement released shortly after the cash rate announcement, President Malcolm Gunning said it was too soon to do another cut, referencing the reduction made by the RBA in February. 

"These unique conditions should be approached with caution and we cannot stress enough the importance of carefully reviewing your financial situation before committing to a mortgage," Mr Gunning noted in the statement. 

However, not everyone was as pleased with the 'steady as she goes' approach adopted by the RBA. 

Less than impressed

One organisation that wants to see a further growth spurt in Australian property is the Housing Industry Association. In its response to the RBA decision, Chief Economist Harley Dale says general demand is in a negative spot, and that another cash rate cut would give the market the shot in the arm it needs. 

"The Reserve Bank has clearly signalled it intends to undertake a further interest rate cut, so it should just get on and do it," he said, clearly not in the mood to mince words. 

But how is that supposed to make you feel? The mixed messages can be confusing, but remember that every organisation has its own goals - what's truly important is what you want out of the market. While I think value can absolutely be taken from statements like the above, the true value lies in finding the right Sydney investment property for your particular situation. 

So don't be swayed too much by strong statements one way or the other - contact your local buyers' agent and tell them what you want, and we will make it happen. 

The Propertybuyer
Podcast

 
Wed 22 Nov '23
with Rich Harvey
Using Data & AI for Better Property Decisions
 
 
Thu 7 Sep '23
with Rich Harvey
Northern Beaches Real Estate Outlook & Industry Trends
 
 
Thu 20 Jul '23
with Rich Harvey
How Sales Agents Think
 
 
Thu 15 Jun '23
with Rich Harvey
Auctions – The Inside Scoop
 
 
Fri 9 Jun '23
with Rich Harvey
Financing Innovation & Building a Property Portfolio
 
 
Thu 25 May '23
with Amanda Jones
Melbourne Property Insights
 

 

Listen to many more
podcasts on our
Podcasts page.