Low cash rate puts Broadbeach real estate within reach
Break out the trumpets and get the marching band back together. If you already own a house in Broadbeach, or are carefully looking over apartments for sale in Broadbeach, the Reserve Bank of Australia (RBA) has just done you a huge favour.
The RBA made the decision to hold the official cash rate steady at 2.5 per cent for the tenth month running. Keep in mind that this is the lowest rate in Australian history.
While this might seem some obscure number that has little to do with your prospects for nabbing Gold Coast property, it's actually essential. Banks measure the interest rates they put on home loans against the official cash rate, so the lower the rate, the easier it is for you to make your repayments.
As Loan Market director Mark De Martino explained: "A one percent drop [in the cash rate] can save someone on a $300k mortgage nearly $200 on their monthly repayment – that's a very significant saving.
"Without the RBA dropping rates, homeowners wouldn't be saving this money," he added.
So now that you know the favourable conditions you could experience if you step into the market, there's no excuse to keep putting it off.