Toggle Menu Header

RBA slashes cash rate to 0.25% to help boost economy

7Mo ago 0 Replies 128 Views
The Reserve Bank of Australia has taken the unprecedented move of slashing interest rates to 0.25% – the lowest in Australia’s history – as part of a comprehensive package to ease the economic blow of Coronavirus.
Today’s emergency trigger was pulled more than two weeks ahead of the RBA’s regular meeting, on the first Tuesday of every month.

The impact the cut will have on the property market is positive, but it is unlikely to have the same affect on pricing as the last four cuts, according to realestate.com.au chief economist, Nerida Conisbee.
“With COVID-19, we are likely to see economic growth slow significantly and there continues to be a high degree of nervousness amongst consumers.

“We don’t yet know whether we are in for house price falls, but there is no doubt the cut, as well as all the other stimulus measures being introduced, will cushion the impact,” she says.
The Federal Government is expected to release a second round of stimulus measures in the coming days – a week after announcing a $17 billion package to pump up the economy amid the COVID-19 crisis.

Interest rates can’t go any lower – the RBA has already said 0.25% is its lower bound.
Low rates could act as stimulus upon recovery
Low interest rates are generally seen as a positive for the residential property market, but in the current situation the positives could come in the long-term, according to realestate.com.au executive manager of economics, Cameron Kusher. 

Mortgage holders breathe a sigh of relief
As well as presenting an opportunity for home owners to get ahead on their mortgage repayments, today’s rate cut will be welcome news for mortgagees who may be struggling financially amid the uncertainty brought on by Coronavirus.
Smartline chief executive, Sam Boer, says the banks have put measures in place to assist those in financial hardship.
“I would advise people to get in touch with their broker or lender if they are concerned about keeping up with their loan repayments.”


Share on:

Top Contributors Last 30 days

1 InvestAus
2 Anuj
3 Joshua

Related Posts

Australia's auction markets are starting to return to normal

Capital cities hosted 1,134 auctions over the weekend, turning in a preliminary success rate of 72.4%. Melbourne activity started to recover as restrictions lifted. Over the weekend the city hosted 188 auctions, 65% of which turned into a sale. It is crucial to note, however, that of all auctions, 10% were withdrawn prior to the auction date. Sydney, on the other hand, continues to carry the whole auction market, accounting for 60% of overall activity. While volumes were down on a weekly basis, the city's clearance rate remained solid at 75.9%. Across smaller markets, Canberra dominated sales activity, with 85.7% of 59 auctions turning into a sale. Adelaide, however, reported the highest volume, hosting 78 auctions over the weekend. Source: x Auction markets ramping up Melbourne is starting to show signs of life as activity gradually strengthens www.yourinvestmentpropertymag.com.au
InvestAus
InvestAus
2D ago 5 Views

Cost of rent in Edmondson Park

Hi please tell the price for rent of a house in Edmondson Park..
Harsha
Harsha
3D ago 17 Views

Australian residential property by foreign investors has seen a fall of 11% in investment

Investment in Australian residential property by foreign investors fell by 11% between the 2018 and 2019 financial years, according to figures from the Foreign Investment Review Board. A drying up of project launches in the wake of the pandemic is likely to drive down building numbers further, with border closures stripping away demand… The report confirmed a trend towards brand new over established property alongside an increasing interest in higher end purchases, with the median price of purchases over $1m up 1.6 per cent to account for one in five sales in the 2019 financial year… Get details at: x Foreign investors abandon Aussie property market -... Investment in Australian residential property by foreign investors fell by 11% between the 2018 and 2019 financial years, according to figures from the Foreign Investment Review Board. The 11% fall oc... www.macrobusiness.com.au
Joshua
Joshua
3D ago 164 Views

Nearly half of all loans deferred due to COVID-19 hardship have resumed repayments

The total loans deferred by Australian homeowners and businesses peaked in late June, with around 500,000 mortgages and more than 200,000 small business loans having paused repayments. As of last week, the number of deferred mortgages dropped to 270,000, with repayments having been resumed on at least 224,000 loans, based on data provided by seven of Australia’s largest banks. REIA President Adrian Kelly said the data is not only a promising sign for the economy as a whole, but bodes particularly well for the property market. “The resumption of repayments in about half the cases is an encouraging sign that mortgagees will not be facing a cliff that some anticipated a few months ago,” Kelly said.   Source: x Nearly half of deferred loans have resumed repayme... Number of deferred mortgages has dropped to 270,000, down from peak of around 494,000 www.yourinvestmentpropertymag.com.au
Anuj
Anuj
3D ago 13 Views

HomeBuilder scheme has pushed up new home sales

The report showed that new home sales were 11.8% higher in the seven months after COVID-19 restrictions came to effect compared to the same time last year. “HomeBuilder has been successful in providing consumer confidence for those customers that had delayed a major investment decision earlier in the year,” he said. “The program has also brought buyers into the market that would otherwise not been able to purchase their first home for a number of years.” Over the seven months to September, new home sales in Western Australia have soared 95.7% compared to the same period last year, the highest among all states. Sales in Queensland and New South Wales also rose 7.1% and 3.3%, respectively, while South Australia posted a marginal increase of 0.5%. Victoria is the only state where sales have gone down at 10.8%. “Delays in the processing of new home loan applications is the most significant constraint to getting these new building projects under construction,” he said. “Processing times for new home loans remain at around two months. Access to finance for new home construction has become exceptionally tight following new regulations introduced in recent years.” Get details at: x HomeBuilder drives new home sales - HIA New home sales are up because of the grant – but challenges remain www.yourinvestmentpropertymag.com.au
InvestAus
InvestAus
3D ago 9 Views

Australia’s residential rental property market is showing signs of recovery from the economic impact of the COVID-19 pandemic

According to the report, 40% of renters are now finding it easier to manage their lease payments, up from 26% when the firm conducted its first survey last March. However, only 11% of the respondents feel optimistic about life post-pandemic, compared to 15% in March. “But as restrictions have slowly relaxed across most of Australia (except in places like Victoria), more renters are starting to re-enter the market and more have returned to employment, which is making rental payments easier for much of the market,” he says. “Right now, it’s a real mixed bag across the states, which isn’t surprising given the disparate levels of restrictions and recovery,” he says. “In New South Wales, Queensland, and Western Australia, we’re seeing increased activity as the economies start to open. Renter activity is almost back to pre-COVID-19 levels.” “The whole ‘work from home’ phenomenon has been really interesting, and many are predicting that this will have an impact on CBD properties,” he says. “People are looking for more space or room in their homes and there’s less of a reliance on proximity to work. This should mean that good properties in the 2 to 10km rings do well, as they generally do.” Bader adds that markets that rely heavily on international and intrastate tenants will likely struggle until travel restrictions lift. Continue reading at: x Has the rental property market recovered? Australia's rental market is showing signs of growth – so why are renters concerned? www.yourinvestmentpropertymag.com.au
Justprop Team
Justprop Team
4D ago 12 Views
6 online
Ronie
Rahul Varma
Gurpreet Singh
Mehedi Hasan
jewel
and more ...