Why are people disappointed in the cash rate decision?
It's the start of a new month, which means many people have been looking ardently at the Reserve Bank of Australia (RBA) for its official cash rate decision. This generally provides a guiding light for interest rates, which means it is vital information for your property investment strategy.
And in its April 7 announcement, the RBA said the cash rate would remain steady at 2.25 per cent, where it has been since February. While not on a par with the whopping 16 months that the cash rate was at 2.5 per cent, this is still welcome stability for many – but why are some people unhappy with the decision?
Further growth necessary – HIA
With a vested interest in seeing the property industry as a whole rise up and shine, the Housing Industry Association was hoping for a bit more in the RBA announcement. Its Chief Economist Harley Dale said that the construction of new homes was a shining light in a property industry that could use a shot in the arm in many areas, and a cash rate cut could have provided that.
He hoped that housing policy reform would be implemented by governments, which could mean less paperwork for you when you try to buy a home. And even if Mr Dale wasn't pleased with the RBA decision, anyone buying new Queensland investment property will still be thrilled to hear that construction is still going strong – it means more rental property options for you!
Growth still incoming
The RBA noted that growth in investor lending wasn't increasing as rapidly as it had in previous months, but there are evidently still a lot of capital gains around for you to make. The latest from RP Data showed that in the last 12 months, Brisbane property prices have risen by 2.7 per cent, and the median price is still much more affordable than the quickfire rises seen in the likes of Sydney.
So with the cash rate steady, growth still going on and affordability rife, there are plenty of reasons to delve into real estate investment in the Sunshine State. Just make sure to remember that it is a long-term strategy. You might not see millions in your bank account tomorrow, but if you buy, the capital gains are likely to come.
To find out more about the investment situation in Queensland or to discuss how to start generating wealth, make sure to contact the team at Think Money.