What a relief!

4.12.08 The Reserve Bank’s decision this week to cut the interest rate for the fourth consecutive month will continue to provide relief to those invested in the property market. The cut of one percent comes as no real surprise to many and is most definitely a clear indication that there is an ongoing commitment to supporting the market place, including that for property, to stabilise. There is also a market confidence abound that this latest in the series of aggressive rate cuts will be a call to action for those buyers watching the property market to jump in and buy and will be a welcome move for those who have already taken the plunge. There is no doubt in my mind that dropping rates are definitely going to bring many of us relief. Those with mortgages will be looking forward to substantial savings especially when you consider that someone with a $400,000 mortgage will be around $200 per week better off than they were in four months ago. In light of the government’s recent initiatives to bolster even more activity , one of the biggest groups of winners in the housing market is still the first time home buyers. With falling interest rates and the increased grants available, first time buyers are sure to provide a much needed boost to the market. Activity on both sides of the transaction is starting to improve with supply easing and buyers coming back into the market ready to buy. What remains to be seen is what will the lenders do? Let’s hope that they see the benefits in working with the market and we see this latest rate reduction passed on to the fullest extent possible. Still, my advice to anyone about to buy is tie up your finance now so that when you come across the house you want you can act with certainty and confidence. Until Next Week ... Phill Broom