The Reserve Bank of Australia has cut rates from 2.75% p.a. to 2.50% p.a.
The Reserve Bank of Australia has confirmed they are dropping the interest rate to 2.50% p.a. bringing an end to the three month hold at 2.75% p.a. Rates have been held low throughout 2013 and further drops have been rumored to take place to stimulate the Australian economy, but until today nothing had been confirmed.
The rate cut this month could lead to a spike in purchases in the property market as many people seize the opportunity and look at entering the market as a first- time buyers or expanding their portfolio by moving into investment property. A new report from RP Data* has shown there are 3,230 suburbs across Australia in which it’s cheaper to buy than rent, so now could be a good time to look at buying.
* July 2013 Rent Vs Buy report
Source – realestate.com.au