Friday, December 19, 2008

Another rate cut... Just in time for Christmas!

Another rate cut... Just in time for Christmas! Home owners looking for some mortgage relief have had their wish come true this festive season.
Last Tuesday the Reserve Bank slashed interest rates a further 1% bringing the RBA’s cash rate to a 6 year low of 4.25%, and if economist’s predictions are right…it won’t be the last.
With all of the reduction flowing directly to mortgage holders, through most banks dropping the entire 1%, it has effectively doubled the real impact of the past 3 rate drops.
This additional ‘cash on hand’ for many home owners will not only inject confidence back into consumers but will also work to increase recreational spending this Christmas, boosting our local economy and providing a long awaited reprieve for many retail owners. When it comes to property these significant decreases have the potential to turn the real estate market around from the poor sale conditions experienced this spring.
For First Home Buyers with secure jobs the outlook in recent history has never been this good! The combination of increased Government hand outs, plummeting petrol prices, record low interest rates that continue to drop and a huge increase in available properties, are providing a fantastic opportunity for entry into the normally challenging housing market.
Cashed up Investors are also sitting pretty thanks to an increased demand for rental properties. With the metropolitan vacancy rate dropping to a very competitive 1.07% in September  plus a number of investment properties being put up for sale, tenants are finding it difficult to secure a home for the coming year. So if you’re a savvy investor snap up a property and place it on the rental market today to receive a steady return during 2009.
What’s to come in the New Year? Well to start with, the Reserve Bank is set to meet once more on the 3rd February 2009 and an additional rate drop of up to .75% is predicted to be passed down.
For more news as it happens in the world of real estate, keep an eye on ‘Theaddress’ and

Ian Darbyshire, CEO <>

© Toop Real Estate Group

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