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REIA welcomes RBA rate cut (1)

REIA welcomes RBA rate cut (1)

REIA says the RBA’s rate cut will improve housing affordability in Australia.
<p $$hash="11118-0"><span $$hash="11117-0">The Reserve Bank of Australia’s (RBA) decision to cut its benchmark interest rate has been welcomed by experts in the Australian property industry.

<p $$hash="11126-0"><span $$hash="11127-0">Seeing the rate cut as an opportunity for people investing in Australian property, the Real Estate Institute of Victoria (REIA) has welcomed the decision as a “sensible” one.

<p $$hash="11136-0"><span $$hash="11121-0">Peter Bushby, president of REIA, said: “The RBA has done the only sensible thing. Now we just need the banks to pass the cut on in full.”

<p $$hash="11135-0"><span $$hash="11134-0">He added that, should banks use the drop in interest to 2.75 per cent, then this will decrease consumers’ home finance commitments by an average of $481 per week.

<p $$hash="11120-0"><span $$hash="11119-0">Despite the ongoing growth in house prices and consumer confidence in Australia, this is an area that had been causing concern for home buyers.

<p $$hash="11129-0"><span $$hash="11128-0">Australia’s housing market is known to be more unaffordable when comparing the average wage to the average mortgage repayment.

However, recent rate cuts have helped to aid this as housing affordability has been improving.

<p $$hash="11137-0"><span $$hash="11138-0">Posted by Ravin Chatlani

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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