Homes on the Sunshine Coast have just become more affordable as of today, 4th December 2012, with the Reserve Bank of Australia (RBA) lowering interest rates by a further 0.25% to 3.0%.
Strategic in their timing, we believe the latest reduction will initially boost confidence in the much needed retail sector by promoting spending ahead of the traditionally busy Christmas period.
Over the last 3 months; contrary to financial commentary; the local residential property market has been buoyed by a rise in turnover, this ‘good feeling’ noticeable by the frequency of SOLD stickers lining local streets.
This ‘good feeling’ is expected to translate into the retail sector and further promote retail spending throughout the months of December and January.
As it stands, the RBA have decreased interest rates on 12 separate occasions since a height of 7.25% in March 2008. Following today’s drop, the cash rate now stands at an even 3.0%.
To put this into real terms, for the average home loan of $300,000 this further reduction creates a saving of $62.50, and a monthly repayment sitting at just $1842.26, all based on a 5.5% interest rate.