RBA lowers the cash rate
In this month’s market update we discuss The Reserve Bank of Australia (RBA) decision to lower the cash rate from 1.50% to 1.25% and what this means for the housing and credit sectors. This is the first rate cut in nearly three years and is welcome news for all property owners. Two of the major banks, CBA and NAB have responded by passing on the full 0.25 percent rate cut, while ANZ (0.17%) and Westpac (0.20%) did not. Below is an update on recent bank/lender rate cut announcements:
Bank of Melbourne -0.20%
Maquarie Bank -0.25%
All other lenders -Yet TBA
What impact will the RBA cut have on the property market?
I believe we will look back on this time as the bottoming out of the Melbourne property market. There is now positive sentiment in the property market for the first time since mid to late 2017. The greatest indicator of this change in sentiment is our investor clients now enquiring about their borrowing capacity. It seems they are now keen to jump back in and invest in residential property. This renewed interest comes as a response to the recent election result and negative gearing benefits remaining. Lower interest rates will only strengthen the property outlook for investors. With investors coming back into the market we expect there to be more buyers and greater competition.
As always if you would like to discuss your own personal situation , please give me a call or send me an email.