If you've been on the fence about buying a new home in the Illawarra, the latest cash rate cut could be a great incentive to make your move in the property market.
Figures published yesterday by the Real Estate Institute of Australia revealed that if banks pass on the latest cut to the cash rate in full, the average borrower could save up to $150 a month on their mortgage compared to the same time last year.
The cash rate, which now stands at three per cent following yesterday's (December 4) meeting of the Reserve Bank of Australia's Monetary Policy Committee, is now at its lowest point since 2009 in the months immediately following the global financial crisis.
According to Pamela Bennett, the president of the Real Estate Institute of Australia, if banks pass on the latest cut of 0.25 percentage points in full, it could become more affordable to buy – and this in turn could give a much-needed kick-start to the Australian property market.
"When it does to the household budget, the average monthly loan repayments will be reduced to $2,077 – or $480 a week," she said, comparing today's figures to the average repayment statistics from the June quarter of 2012.
"The market has remained relatively flat, but housing affordability has been very slowly improving over the past five quarters," she added.
Bennett noted that improved affordability and better interest rates could provide homebuyers with plenty of incentives to make a move – especially if banks and lenders pass along the cash rate cut.
An experienced real estate agency can help you plan your next property purchase in the Illawarra. Wollongong-based MMJ Real Estate has been operating locally for more than 50 years, and can provide invaluable insight into the area.
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