It seems that the RBA’s decision last week to cut the cash rate to 1.75 per cent (the lowest in history) has left many economists a little dazed and confused. The good news (for buyers and investors) is that many of the major lenders are tipped to drop their mortgage rates accordingly.

In a statement, here is what RBA Governor Glenn Stevens had to say about the cut, "In reaching (Tuesday’s) decision, the board took careful note of developments in the housing market, where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate.

"At present, the potential risks of lower interest rates in this area are less than they were a year ago." 

While this may be so, you only have to ask around and property experts will tell you that record low interest rates historically equal exciting movement for the property market and in the past, have been the instigator to several property ‘booms'.  

The cuts are music to the ears of investors and buyers alike and fantastic news for the market in general.  While we do not think we are going to see the next big boom happen this month, things are definitely falling into place for some very exciting future times ahead and we are definitely in the midst of a ‘boost’ right now.  

Also adding to this boost will be Australia’s property consumers who are becoming increasingly more confident in our real estate market – which is great news in itself!

We expect the next affordability index will likely show a further improvement further reiterating this – further instilling even more confidence in our buyers, and investors alike.

But wait! It seems the RBA cuts are just the beginning. There is much more for property consumers to get excited about. On the same day as the cuts were announced, Federal Treasurer Scott Morrison also delivered his first budget, which strongly reiterated that negative gearing will likely not change, nor will investors be slugged more on capital gains tax – thus, revealing more good news for property consumers.

“We will not remove or limit negative gearing,” Morrison said in his Budget speech. “Those earning less than $80,000 make up two-thirds of those who use negative gearing. They are teachers, nurses, police officers, office workers and tradesmen. We do not consider that taxing them more on their investments is a plan for jobs and growth.”

 So there you go, another confidence ‘boost’ for buyers and investors.

 Adding to this, the recent release of price data for April has shown that the home value index has also risen in the past three months of the year in seven of the eight capital cities. With CoreLogic figures, showing that Brisbane was up 2.8 per cent – once again confirming our prediction of solid growth for the Brisbane CBD.

With low rates, positive pricing data and good news from the recent budget – things are definitely looking a little rosier!  To find the best apartments that Brisbane has to offer, contact the team at HSBP on 0419 782 133.