Real estate experts welcomed the surprise interest rate cut, saying it should stimulate the market.
Real Estate Institute of Victoria chief executive Enzo Raimondo expects the market will lift within weeks. "We may see the effects in the next two to three weeks as it starts to build confidence in the community’ he said.
“Those that have a mortgage will find it extremely beneficial. Those who are looking to buy will be given some renewed confidence in the market. “
The Housing Industry Association said the cut offered a glimmer of hope for both mortgage holders and aspiring first home buyers.
“Increases in interest rates were the final straw for many current – and aspiring home buyers – rate cuts will provide some necessary relief, “HIA policy Chief Chris Lamont said. He said further rate cuts over the next 12 months would provide greater opportunities for Australian’s to get into home ownership. “Put simply if you can afford to get into a home of your own, don’t delay’, he said.
Aussie Home Loans Director said the move was good news for home borrowers, “it’s a bold move that signals just how serious the global credit crunch is and the RBA has to be commended. It’s designed to ensure that a big swag of this cuts through to consumers…to provide some relief to what’s happening and stimulate some sort of confidence.
Source: Herald Sun, Wednesday Oct 8, 2008, Gareth Trickey
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