Did Reserve drop rates?

[WebBoard]

From: Jeanette .


Has anyone heard the news this morning. Did the RBA drop interest rates?

 

[Owen]

Reply: 1
From: Owen .


Yup. 0.25%.

 

[WebBoard]

Reply: 1.1
From: Liam B


Broke their hearts the poor buggers

 

[dwyerfam]

Reply: 1.1.1
From: Danny Dwyer


So does this mean the banks & co will be giving us new ads with lower rates again?

 

[WebBoard]

Reply: 1.1.1.1
From: Robert Forward


Probably....

And they are already talking about another interest rate cut for April.

Cheers
Robert

 

[Owen]

Reply: 1.1.1.1.1
From: Owen .


So is this good or bad?

Good - I can afford more IP's and the return on rentals gets better. Banks will loan more maybe.

Bad - IP prices stay up or increase. Less bargains as it will be a sellers market. Tenants may be able to buy instead of rent.

On top of this is economic downturn meaning more mortgagee sales, business failures, etc. So instability in the rental market with some possible bargain houses from those in trouble.

My crystal ball is having a hernia!!!