The Reserve Bank of Australia’s decision to leave interest rates on hold at its first Board meeting of 2014 means it is time for the NSW Government to step in and really help first homebuyers secure their dream property.
The central bank acted largely as expected at its February Board meeting, maintaining the cash rate at a historically low 2.50 per cent.
REINSW President Malcolm Gunning said it is unlikely that we will see much movement in interest rates in 2014.
“There are many indications that interest rates will remain steady for most of 2014. As a result it is time for the Government to step in and provide relief to those seeking to secure their first home,” Mr Gunning said.
“We have seen solid interest in the property market since the current interest rate cycle began in November 2011 and this can only be maintained by keeping property attractive and giving more opportunities to first homebuyers.”
The RBA has cut the official rate by 225 basis points since November 2011.
“The Government must now play its part in ensuring investment continues by expanding incentives for first homebuyers and reviewing stamp duty.
“While we support the first homebuyer grants for new properties, it needs to be recognised that they are competing not only against local investors but overseas investors too, which is making it tough for them to get their foot in the door.
“Let’s give them the break they deserve and reintroduce the first homebuyers grant for existing properties, there is less interest in these properties from local and international investors and it will level the playing field,” Mr Gunning said.
The RBA will next meet on Tuesday, 4 March 2014.
For further information or to arrange an interview with REINSW President Malcolm Gunning, please contact: Helen Hull – 0419 642 961 or [email protected]