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REIA comes forward about decision to lower interest rates


Australia is currently experiencing a number of changes in the property market, whether it's greater numbers of Chinese investors or international chains moving into the region.

Lower interest rates are critical to housing affordability in property markets across the globe, and that's why the Real Estate Institute of Australia (REIA) has recently come forward. The organisation commended the Reserve Bank of Australia (RBA) decision to bring rates down.

A substantial 25 basis point cut to the official interest rate was recently announced, which brings the figure to the lowest level in several decades. In fact, the REIA predicts that it has reached the lowest point since the late 1950s.

Such a reduction should certainly spell opportunity for those considering the feasibility of property developments.

Neville Sanders, the president of the REIA, explained in a release that the RBA Board has made a "considered and accurate assessment of the property market taking into account economic headwinds Australia and the international community are experiencing."

"The significance of the easing monetary policy is that housing affordability in Australia will improve further, however we need today's cut to be passed on fully by lenders."

He went on to explain how a cut in the cash rate plays an important role in boosting both business and consumer confidence. He also added the fact that since the RBA began cutting the official interest rate in 2011, the median proportion of family income that's required to meet loan repayments has decreased significantly.

This year, as it has been noted before, is rife with opportunities for those looking to move into the property market. However, it's going to be important to consider these options sooner rather than later, as many overseas investors are starting to assess the validity of Australian property.

Date Published: 05 Mar 2015
Category: General News

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