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Unchanged cash rate good for potential homebuyers

By Jamil Allouche

Anyone interested in purchasing their own property in Carlton or in nearby suburbs should begin looking into their finances, with the official cash rate remaining at the historically low level of 2.5 per cent for at least another month. 

The Reserve Bank of Australia announced their official cash rate decision earlier this week (2 September), which sets the benchmark for interest rates offered by lenders. A low cash rate could there give buyers the opportunity to secure their own real estate. 

Following the decision, a number of real estate industry organisations came out in support of the retained low cash rate, including the Housing Industry Association(HIA). HIA Chief Economist Harley Dale stated this would be a great opportunity for people to purchase property during the traditional explosion of spring sales. 

"That interest rate outlook is supportive of healthy levels of new residential construction activity throughout 2014/15. That is a tick in the box for the Australian economy – new housing is a clear bright spot for domestic demand and it needs to continue to shine," said Mr Dale in a 2 September statement. 

With the rising strength of the nation's real estate market, the decision to retain the cash rate is a great step forward for buyers sitting on the fence about purchasing their own homes. 

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