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Well that was a surprise! Yesterday’s Reserve Bank decision to lower official cash rates by a quarter percent caught most of the country’s leading analysts napping. The new cash rate is now 2.75%, the lowest interest rates have been in Australia for fifty years.
More surprises overnight too as the country’s major banks all made announcements that they would pass on the interest rate in full, something they struggled to do during most of 2011-2012.
It’s welcome news for mortgage holders and people seeking to enter the real estate market because low interest rates boosts housing affordability. It’s not so good for people holding their cash in the bank – but possibly with house prices currently low, and rental vacancies tight, investors might find this an encouraging time to look for property investment opportunities.
The Professionals are aware of many people who have continued to wait for further downward movement of interest rates. If you have been watching the market with interest (pardon the pun), we’d welcome a chat with you to see how we can help you take that next step.