C&G’s Guide to the RBA Announcement

For the first time in nearly three years, the RBA announced a cash rate cut of 1.25% - a historic all-time low. With the property market about to shift gears, it’s important to understand how the new interest rate will affect your property. In today’s guide, C&G break down what the new interest rate means for borrowers, sellers and investors of Bayside real estate.


The RBA’s decision could be a potential gamechanger for the property market.  Rate cuts have historically helped bolster house prices; presenting future change for buying and selling in the market. For borrowers, increased property values will help in accessing finance products at a lower interest rate. This ultimately presents borrowers with more buying power. With big banks working to restore trust following the Royal Commission, borrowers are likely to enjoy the full benefits of lending products. With premium homes in Bayside usually the first to gain buyers’ attention, now is a great time to make your move and jump on the property ladder.


A rate cut will drive sellers back into the market. If borrowers can access financial support, the rate cut will push for more competition, making it easier to sell property. It’s likely that agents will encourage more auctions than private sales, therefore fuelling competition among buyers and properties.


If you’re looking to buy, the new interest rate should allow you to borrow more, helping to build your investment portfolio. A rate cut is also a reminder for landlords to be mindful of rent expectations. Although banks will lend you more money, investors need to understand that their capital growth will not be the same since the market is still cooling down. Having a trusted and stable tenant is more important to your return than losing a really good tenant over unrealistic rent expectations.

The new interest rate is bound to raise questions on where your property sits in the Bayside market. If you’re thinking about selling or buying, reach out to your local Chisholm & Gamon office for information suited to your specific sale or purchase.


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