First-time buyers benefit from reduced cash rate

Many property groups and first-time buyers have had their wishes granted, as the Reserve Bank of Australia (RBA) announced a further cut to the official cash rate (OCR). At its meeting on 3 May, the monetary policy committee took a closer look at economic conditions to conclude that action needed to be taken.

As a result, the OCR now stands at 1.75 per cent – the lowest in history. It was a year ago that the RBA decided to reduce the rate to 2 per cent, but inflationary pressures and other concerns have made it necessary to make a further cut.

Difficulties encountered by the global economy, alongside declines in commodity prices, are just two of the reasons behind the RBA’s historic decision.

How the decision will benefit buyers of property in Bentleigh East

A number of property groups have welcomed the announcement, including the Real Estate Institute of Victoria (REIV). President Geoff White expects that lower rates will help people get a firmer footing on the property ladder.

“Buyers currently have access to the lowest interest rates in the nation’s history, providing much needed assistance to first home buyers,” he explained.

Demand for property in Bentleigh East and other parts of Melbourne is also expected to surge, not least because prices remain more favourable than they are in Sydney. The challenge now is making sure the nation’s mortgage lenders pass on this rate cut to customers.

Make the most of the cash rate cut

There’s been no better opportunity to seek out a real estate agent in Carnegie to assist your property search. Matt Hurlston and his team are on hand to guide you through the purchasing process and make sure you have access to a wide range of quality homes.