How the low interest rate is benefiting Gold Coast borrowers

first_img Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:29Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:29 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenWays to get into the property market for less00:29 He said it had already given a much-needed confidence boost to the local market.“It’s been positive for real estate as there’s been more people out and about,” he said.“It gives them the confidence to get out there and buy.“There’s a lot of sold signs up out there.” The cash rate is expected to be cut at least one more time before the end of the year.More from news02:37International architect Desmond Brooks selling luxury beach villa10 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day agoHowever, Mr Henderson said changes to lending criteria, more buyer confidence post federal election and tax cuts for low income earners had also contributed to the improved market conditions. In a move to further strengthen the market, low rates were tipped to stay. “Lower interest rates will be more of the norm for our lifetime,” he said. “Whether they stay this low, that’s probably not feasible.” CoreLogic head of research Tim Lawless backed his comments, explaining all the changes were collectively helping slower markets across the country bounce back.“The pause in the cutting cycle will give the RBA time to assess the effects of earlier rate cuts on the economy and consumer spending,” he said. The Reserve Bank decided to keep the official interest rate on hold.PROPERTY experts believe another interest rate cut is in sight despite the Reserve Bank deciding to hold tight.It came as no surprise that the official interest rate would remain at its current record low of 1 per cent following cuts in June and July but another was expected before the end of the year.Real Estate Institute of Queensland Gold Coast zone chairman Andrew Henderson said the RBA would likely wait to see how the economy reacted to previous cuts before making another. RELATED: Rates set to hold until November “However, there is a strong likelihood of at least one more cut later this year.”“With mortgage rates set to remain low for an extended period of time … and potentially move even lower later this year, we are expecting to see the housing market move into a gradual recovery.“However, with credit policies remaining tight and economic uncertainty still elevated, we aren’t expecting a material acceleration in housing activity or housing values.”According to comparison site Finder’s RBA Cash Rate Survey, experts and economists predicted property values would rise across the nation by August next year.last_img

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