Rate cuts are good news

The Riverine Herald - Local Real Estate - - LOCALREALESTATE.COM.AU -

The Re­serve Bank’s de­ci­sion to de­crease rates by 0.25 per cent in Novem­ber and De­cem­ber is pos­i­tive news for mort­gage hold­ers in the lead-up to Christ­mas. ‘‘A sec­ond rate cut will as­sist those who are strug­gling with a mort­gage but may also be the cat­a­lyst needed to en­cour­age first-home buy­ers to re­turn to the mar­ket in the new year,’’ Real Es­tate In­sti­tute of Aus­tralia pres­i­dent Pamela Ben­nett said. ‘‘We know that first-home buy­ers are start­ing to re­turn to the prop­erty mar­ket as ac­tive buy­ers, but the num­ber level of ac­tiv­ity to still only about half of what it was in 2009. ‘‘A fur­ther re­duc­tion in in­ter­est rates will as­sist in stim­u­lat­ing the lower end of the mar­ket and will make buy­ing a home a more af­ford­able op­tion for young Aus­tralians. ‘‘Although just one com­po­nent of the so­lu­tion to hous­ing af­ford­abil­ity, lower in­ter­est rates are needed to re­duce the pro­por­tion of in­come that Aus­tralians are spend­ing on loan re­pay­ments in an ef­fort to im­prove the wors­en­ing af­ford­abil­ity sit­u­a­tion.’’

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