Interest rates have plummeted to a record low of just 0.50% after the Reserve Bank of Australia’s March 2020 board meeting. This is the fourth time in the past year that the official cash rate has been cut.
The big banks have responded to the pressure to pass on the majority of the cuts to consumers to aid in stimulating the economy. At least in the short-term, the Australian economy will continue to struggle as China, our biggest trading partner faces Government mandated factory shutdowns in an attempt to cease the spread of COVID-19.
Growth for the March quarter is suspected to be noticeably weaker than previously predicted as we encounter the full impact of a virus-anxious economy. Though experts remain optimistic that once the outbreak is under control, the Australian economy could be well positioned to rebound quickly.
But what does that mean to the residents of Perth wishing to get started on the property ladder, upgrade to a brand-new home, or invest in property development?
The fall in Perth property which saw the swing from the nation’s most expensive to its cheapest has arrested, and the construction industry is seeing consistent green shoots of growth over recent months. The result of this is that land and property prices are on the rise, beneficially coinciding with the lowest interest rates on record.
Meaning now in Perth is the best time to start your building journey.