Buyers of Belconnen real estate are likely to be celebrating this week, as it's announced that the official cash rate will be reduced once again. The 1.75 per cent rate is effective from 4 May and is the lowest level on record.
In May 2015, the Reserve Bank of Australia (RBA) made the historic decision to cut the cash rate by 0.25 percentage points to reach two per cent. It's remained at this level ever since, until this latest meeting.
RBA governor Glenn Stevens explained that inflationary pressures on the economy had been lower than expected, while Australia's terms of trade are notably lower than in recent years. Commodity prices have also taken a hit in the recent past, with knock-on effects for the Australian economy.
Many property industry experts have praised this decision, including the Housing Industry Association (HIA). It pointed out that some mortgage lenders hadn't shared the benefits of the lower cash rate with customers over the past year – something they now have the opportunity to rectify.
"Housing affordability remains very challenging, and homeowners deserve to receive their fair share of today's rate cut," commented HIA senior economist Shane Garrett.
He explained that new home building and renovations activity is likely to improve as a result of this latest announcement, delivering benefits to existing and potential owners of Belconnen real estate.
Making the most of the new all-time low cash rate is likely to be high on many people's agenda, which is why you need an experienced real estate agent to stay ahead of the crowd. Ray White Belconnen is here to help you make your first steps onto the ladder and enjoy everything these favourable conditions have to offer.