Rate Cut to Boost Gold Coast Real Estate Market

WOW, a 1% cut to interest rates! This is on top of 0.25% last month. If you are sitting on the sidelines waiting to buy, what more do you need, how can it be any clearer, why would you wait any longer – prices are only going one way from here and that is up.

In commentary on the rate cut, news.com.au were unquestionably bullish about how it will affect the property market saying “the massive rate cut will have people rushing back into the property market”.
This may be overly positive, but it is clear that the end of the restrictive stance on monetary policy by the RBA is at an end. In my September newsletter I said that “If you are trying to pick the absolute bottom of the market, it may have passed you by, but it is still not too late to make an astute purchase” and this comment holds even truer now we have had such a dramatic change in policy.

Some in the media have since questioned “what do the Reserve Bank know that the rest of us don’t, to be lowering rates by this much?” But for now buyers should be happy with the reduced rate and sellers should be happy that.