More rate cuts needed to encourage investors
The Reserve Bank’s rate cut this month was good news for investors but it may still take a few more drops before they jump back into the market, a leading analyst said.
Speaking to Smart Property Investment, RP Data’s senior research analyst Cameron Kusher said the last cycle of rate cuts back in 2008 were not the primary reason investors and homebuyers re-entered the market.
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“The last time the Reserve bank cut interest rates a lot of investors and homebuyers jumped back into the market even though credit was tight, because there were government backed stimulus incentives available at the time,” Mr Kusher said.
“I think this time homebuyers will be a lot more wary about doing that because after the last experience they will see as soon as things get better again, the Reserve Bank will start hitching up those rates.”
