In­ter­est rate cut

Lo­cal prop­erty mar­ket gains a con­fi­dence boost

Central and North Burnett Times - - DOMAIN -

In­vestors, buy­ers and sell­ers are mak­ing pos­i­tive de­ci­sions fol­low­ing this month’s Re­serve Bank of Aus­tralia (RBA) in­ter­est rate cut, says Gayn­dah LJ Hooker Prin­ci­pal Ed­wina Ran­dall.

The RBA an­nounced a 25 ba­sis points re­duc­tion of the cash rate at its Oc­to­ber board meet­ing, mak­ing it, at 3.25 per cent, the low­est since Oc­to­ber 2009.

“The rate cut has pro­vided a boost in our prop­erty mar­ket’s busiest sea­son, and LJ Hooker Gayn­dah is see­ing that through ris­ing num­bers of en­quiries and in­spec­tion num­bers, for ex­am­ple.

“The fore­cast from LJ Hooker is pos­i­tive.” said Ed­wina

The com­pany’s Deputy Chair­man, L. Janusz Hooker, says re­search sug­gests the prop­erty mar­ket re­sponds more quickly to rate cuts than the over­all econ­omy.

“This rate cut will lead to cheaper loans and add mo­men­tum to the hous­ing mar­ket in the com­ing months. It could also fuel con­struc­tion lead­ing to prop­erty-re­lated jobs and an uptick in tax rev­enue for the gov­ern­ment,” he said fol­low­ing the RBA Oc­to­ber de­ci­sion.

“In the mar­ket­place we have seen house prices ris­ing on av­er­age since the last RBA rate cut in June. The LJ Hooker net­work of mort­gage bro­kers sees a no­tice­able in­crease in en­quiries from those look­ing to pur­chase prop­erty each time the RBA low­ers the cash rate,” said Mr Hooker.

Ed­wina said ac­tion in the lo­cal prop­erty mar­ket had gained mo­men­tum.

“A com­bi­na­tion of low in­ter­est rates; re­al­is­tic buy-in prices with likely long-term price growth; good rental re­turns, low va­cancy rates and high yields along with a solid lo­cal econ­omy is en­cour­ag­ing more peo­ple to buy North Bur­nett prop­erty, whether for their own home or as an in­vest­ment.

“For many home own­ers and po­ten­tial buy­ers, the most re­cent rate cut came as a re­lief and a con­fi­dence boost, and should an­other fol­low we are likely to be very busy in the lead up to Christ­mas.”

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