First home buyers have been encouraged to begin looking into the real estate market, with the Reserve Bank of Australia (RBA) announcing on May 7 that Australia’s interest rates will be cut by 0.25 per cent, bringing the national rate down to 2.75 per cent.
The president of the Real Estate Institute of Australia (REIA), Peter Bushby, said in a media release yesterday (May 7) that potential home buyers “needed encouragement to enter the market” and these interest cuts provide that opportunity.
“If the banks do pass on the .25 percentage points cut in full, the average loan repayment will be $481 per week. This is $115 per month less compared to the figure recorded a year ago and will substantially ease the mortgage stress on Australian home owners,” he said.
“The RBA has done the only sensible thing.”
This comes after Victoria’s state government announced changes to First Home Buyer Grants at the end of last month (April). First home buyers will have their grants increased from $7,000 to $10,000 when purchasing a newly-built property as well as a 40 per cent cut to stamp duty.
If you’re interested in Carnegie real estate, have a chat with an agent from Ray White Carnegie. We can help you throughout the entire process to ensure you get the best deal possible.