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DEAKIN WEST, ACTDEAKIN WEST, ACT (November 05) - The Real Estate Institute of Australia (REIA) has welcomed the Reserve Bank’s November 04 decision to reduce interest rates by a further 0,75 %.
“The latest decrease in interest rates together with the cuts in September and October mean we have the lowest interest rates since December 2003, says REIA Acting President, Chris Fitzpatrick, in his reaction to the announcement.
“A reduction in official interest rates of two percent since September is great news for home owners or those contemplating home ownership’, Fitzpatrick continued.
The cumulative affect of the last three interest rate reductions for homeowners is that an average mortgage of $256 000 is now costing $427 less per month to service.
Whilst the Federal Government and the Reserve Bank are responding to the current economic position, State Government’s should also play their part.
“The stamp duty payable for a median priced house across Australia is an average of $14 990, which is not only an impediment to home ownership and to freeing up movement of existing owners, it is supporting a grossly inefficient tax. It is time State Governments reviewed this position”, says Mr Fitzpatrick.
‘The recently announced increase in the First Home Owners Grant, the interest rate cut and the improvement to housing affordability makes now an opportune time to enter the housing market’, concluded Fitzpatrick. << Back to news section
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