With the cash rate at an all time low, you'd be forgiven for thinking this was as far down as interest rates will go. However, despite the tumbling records, there is still debate over whether we have seen the end of cuts this year.
The Reserve Bank of Australia (RBA) board held this figure at 2 per cent in its July meeting, noting that more information would be taken on board in the coming weeks to determine if the current level was appropriate. But if this is the view of the board, then who is suggesting it's going to go down even further?
The Housing Industry Association (HIA) is one body that thinks the RBA has few tricks left up its sleeve to boost the housing sector. Chief economist Harley Dale believes that the stability offered by the Reserve Bank doesn't change the possibility of future cuts at all.
"There will be persistent conjecture in coming months as to whether the easing rate cycle is over, or the RBA has another rate cut bullet or two it is prepared to fire," he stated.
Another key point he did make, however, is that low interest rates are going to stick around for a while yet – ideal conditions for anyone who wants to buy rental properties in Double Bay or surrounding areas.
RBA governor Glenn Stevens has noted that housing market activity has been more or less stable in the last few months, which suggests that talk of a property bubble may be premature. If you've been considering property investment in Australia, then the opportunities afforded by these interest rates shouldn't be passed up.
Get in touch with the team at Ray White Double Bay when you want to use these conditions to purchase real estate in Rushcutters Bay or other areas of the eastern suburbs. They provide a fantastic platform from which you can live the lifestyle you deserve.
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