Property industry bodies have been quick to welcome yesterday’s larger than expected 75 basis points cut by the RBA.
The cut brings total reductions in the past three months to 200 basis points – the quickest easing of rates since the early 1990s.
Chris Lamont, the Housing Industry Association’s chief executive, said the reduction was great news for first home buyers looking to take advantage of the government’s first home owner boost.
“The interest rate cuts to date (with more potentially to follow) provide an opportunity for many Australians to enter the home ownership market for the first time,” he said.
Existing home owners would also benefit from an average saving of $390 per month, or $4,681 per year, he said, compared to just three months ago.
The Real Estate Institute of Australia (REIA) also welcomed the reduction but called for state governments to play their part by reviewing stamp duty.
“The stamp duty payable for a median priced house across Australia is an average of $14,990, which is not only an impediment to home ownership and to freeing up movement of existing owners, it is supporting a grossly inefficient tax,” acting president Chris Fitzpatrick said.
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