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Property spending 'to be fuelled by rate decision'

The Reserve Bank of Australia's recent rate decision could prompt increased property spending, it has been claimed.
A rate decision from the Reserve Bank of Australia is set to prompt increased spending on Australian property.

This is according to predictions made by comparison portal RateCity, which claimed that the organisation's move to hold rates will encourage borrowing.

Speaking to Perth Now, chief executive of the website Damien Smith pointed out that the "momentum" for saving has ground to a halt in recent months but noted that a larger number of individuals are taking out loans.

"Borrowing for investment and owner-occupied home loans has grown," he told the publication, adding that the biggest increase had been witnessed in June.

Mr Smith went on to explain that despite a decrease in the sales of new homes, activity in the market is rising.

His comments follow a statement by the Reserve Bank of Australia on the decision, in which governor Glenn Stevens hailed the growing strength of trade and national income in the country.

Posted by Craig Francis
- prices, sales, housing, property, demand, rates, interest

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