OFI Attendees will Welcome Rate Cut

The RBA today has cut interest rates to a 53 year low.

In doing so it has avoided reaching one of the longest periods of interest rate inactivity since the GFC by cutting the official cash rate by 25 basis points.

The Ray White Group says this will give everyone confidence that we will have a more certain winter market than some commentators were suggesting.

The bad news for first home buyers is that it may make life more difficult for prospective first home buyers on the Sunshine Coast.

Dan Sowden of Ray White Maroochydore says that investors are the winners today.

“First home buyers now have real risk of being pushed out of the market by yield-hungry investors,” Mr Sowden said.

“With the cash rate now sitting at 2.75 per cent and tenants still paying above average rents locally, investors are enjoying 5, 6 or 7 per cent rental yields.”

“Further, as rates continue to remain at market low levels, the number of distressed sales reduce as sellers can afford to hold their real estate for the long term.”

The Ray White Group monthly result of $2.44 billion in April, some 18 per cent up on last year, suggests a stronger lead into winter than last year.

The Ray White Group is the largest property company in Australia.