RBA cuts rates- the lowest its ever been

RBA rate cuts to ‘help economy’ could instead just boot the housing market. People who have borrowed high will breathe a sigh of relief at an announcement that should see them sitting pretty for at least three years.

This week the Reserve Bank of Australia has again slashed interest rates and taken other steps to try to alleviate COVID-19 economic pressures. The RBA cut the cash rate to 0.1 per cent on Tuesday and less than 24 hours later, the Commonwealth Bank of Australia and Westpac both announced changes to fixed mortgage and business loan rates.
This is the 10th time the RBA cut official interest rates to record lows. This time they took rates down to 0.1 per cent. It has been over 10 years since they last put official interest rates up, as the next graph shows.

Down, then down some more. The RBA has cut interest rates for the past decade.

“The RBA governor wants this rate cut to help reduce ‘problem loans’ but this will only work if the banks pass it on,” said RateCity research director Sally Tindall.

The RBA’s rate cut will remain in place for at least the next three years, giving certainty to banks and other lenders about their funding costs.

Lending conditions are the strongest they have ever been, a good time to start thinking about your home renovation or new build design. Don’t hesitate to give one of our team a call to kick off your next project.

See full article here.


NSW stamp duty changes a ‘win-win’ for first-home buyers and tradies

Stamp duty will be temporarily axed on new homes valued under $800,000 as part of a NSW government initiative to encourage more home building.

NSW Premier Gladys Berejiklian announced on Monday the state government will temporarily eliminate stamp duty for first-home buyers purchasing newly built homes valued up to $800,000 from August 1, with tapered discounts for properties valued up to $1 million.

As it stands, first-home buyers are exempt from paying stamp duty on newly built homes valued up to $650,000.

See full article here.


Lifestyle Sees Regions Ride Out Covid Downturn

A New South Wales region has recorded both the largest rise in housing values, as well as the biggest jump in home sales over the past twelve months, new data shows.

Illawarra, south of Sydney, came out on top in Corelogic’s regional market update, with Launceston in Tasmania showing the highest growth for units.

Read full article here.