Rate cut will further encourage property market

Century 21, the largest real estate sales organisation in the Asia Pacific region, believes the Reserve Bank’s decision to cut the official cash rate to two per cent is likely to further encourage the Australian property market as buyers continue to have access to cheap debt.

"It appears that the Reserve Bank may have seen signals in the economy that merit this action despite the continued strength of real estate in many locations and associated sectors," said Century 21 Australasia chairman and owner, Charles Tarbey.

"It may come as a surprise to some people but Century 21 does not support the cut rate. We prefer a stable and growing property market as opposed to a market fuelled by low rates and extremely high levels of buyer and investor interest.

"As most investors rely on access to debt and equity growth from their portfolios to fund new acquisitions - many in this group may be looking for new purchases over the coming months in light of market conditions," said Charles Tarbey.     

In their announcement, the Reserve Bank noted the decline in commodity prices over the past year and the fall in Australia's terms of trade.

Century 21 encourages potential buyers who are looking to purchase real estate to ensure they have obtained the appropriate professional property and finance advice before doing so.

Posted by Charles Tarbey on 06/05/2015 at 11:54 AM | Categories:

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