Search
  • RealestateGC

Expect rate cuts to boost housing affordability - REIA

By Gerv Tacadena - 8th July 2019




The Reserve Bank of Australia's decision to cut he official cash rate for two consecutive months would likely boost housing affordability for home buyers, Real Estate Institute of Australia (REIA) president Adrian Kelly said.


Kelly said the rate cut would reduce the share of income needed to meet home-loan repayments.


Recent figures from REIA showed that the proportion of income required to meet loan repayments decreased to 30.3% over the quarter in March.


"The two interest rate cuts in consecutive months would see this proportion decreased to 28.6%, the lowest since 2003 and comes at the most opportune time for first home buyers," he said.


Furthermore, borrowers would be able to save significantly especially if lenders pass the rate cut in full.


Kelly said that for every $100,000 borrowed, borrowers would be able to decrease their annual repayments by $500. The average home loan amount of first-home buyers in the first quarter of the yea was at $338,000 - this means that they could save as much as $140 per month.


"It is first home buyers that will benefit most with the number of first home buyers decreasing nationally to 8,010 in April with the average for the first four months of 2019 being 8,319, down by 1,100 per month compared to the last four months of 2019," he said.


Kelly also believes that unlike the last series of cuts in 2015 and 2016 which stimulated the housing market through increased investor activity, the recent cuts would stabilise the market.





0 views
  • Real Estate GC
  • Instagram - Grey Circle

CONTACT OUR RENTAL OR SALES TEAM

102 Bienvenue Drive

Currumbin Waters Qld 4223

Tel: 0488212167

Email: admin@regc.com.au

While Real Estate Gold Coast values and respects your privacy, be aware that to serve you we may require to request and retain identifying information. The nature and extent of this information will vary depending on the type of interaction you have with us.
Web site
Viewing the publicly accessible pages of this web site does not involve the transmission or storage of any personal information beyond the non-identifying web server details collected for web site visitor statistical purposes.

Submission Forms
Completing the general enquiry form requires certain identifying contact information. This information will be used to respond to your enquiry, but not shared with unrelated third parties without your permission. As the web site enquiry forms and email communications are not secure, we cannot guarantee the confidentiality of information sent via this means.
If you have any questions regarding your privacy on this web site, please contact us at Real Estate Gold Coast on phone  0488 212 167 or email admin@recg.com.au.

GET IN TOUCH

© 2019 Real Estate GC 
All Rights Reserved | Full Real Estate Licence QLD | Corporate Licence QLD | REIQ Member