As expected by just about every economic commentator in the country, the Reserve Bank announced on Tuesday that it was taking official interest rates below 1 per cent for the first time as it strives to lower unemployment and stimulate the economy.

The cut was the RBA's third cut since June and came after the unemployment rate had risen to 5.3 per cent from 4.9 per cent at the start of the year. This move was not surprising, and finance markets had factored in an 80% chance of a cut.

For those who view the big banks with a degree of cynicism, (which is just about all of us, right?), the big question was whether we would see a reduction in home loan rates to match the RBA’s move. Whilst the Big Four passed on most of the cuts in June and July, they were more restrained this time. For example, the Commonwealth lowered its key rates for owner occupiers by 0.13 per cent, but investors with interest-only loans received the full 0.25 per cent.

While all the speculation was going on around how low our home loans could go, the local property market continued to move on without a hiccup. One example was the mid-week sale of a two-bedroom townhouse in Edgewood Close in Thomastown West, (pictured).

Situated around the corner from Thomastown Meadows Primary School, and just a few blocks from the Childcare Centre and Kindergarten, this property had plenty to offer a young family. So it was no surprise to see a mix of first-time buyers and investors showing the strongest interest. An extra bonus for many buyers was the fact that it offered a low maintenance lifestyle, but the added independence of its own driveway and street frontage, with no owner’s corporation fees.

Following a strong turnout at a couple of open houses, our team was able to negotiate a strong mid-week sale at $340,000 whilst helping a young buyer to purchase his first investment property. That’s what we call a win-win result!

Remember, if you want to make the most of the Spring market, this is not the time for procrastination. Don’t hesitate to give us a call on 9466 3233 this week for experienced advice and assistance that is based on results.

Cheers,

Con Constantinou

Barry Plant Thomastown