Investment opportunities increase following official cash rate announcement

The Reserve Bank of Australia (RBA) announced their decision to further reduce the official cash rate yesterday (August 6), bringing it down to the lowest level since 1959.

Dropping by 0.25 basis points to a historically low 2.5 per cent, this could potentially be fantastic news for anyone looking to invest in Balmain real estate, or any of the surrounding Inner West Sydney suburbs.

For example, signs that those looking into the real estate market are beginning to regain confidence helped to spur along the decision - with monetary policy easing up enough to encourage interest-sensitive spending in the coming months.

President of the Real Estate Institute of Australia (REIA) Peter Bushby said in an August 6 statement that the official cash rate cut could help to increase the affordability of homes on the market by 4.7 per cent.

Furthermore, how much of a median family's income is needed to pay off the average loan repayment is expected to drop from 29.9 per cent down to 28.5 per cent, which could help to reassure potential buyers and get them into the market.

"This is the best level of housing affordability since the December quarter 2009 and will be welcomed by investors who have been returning to the market in greater numbers over past months," said Mr Bushby.

The RBA have reduced the cash rate by a huge 2.25 per cent in the past 21 months, since the reductions began back in November 2011.

However, the RBA have said that continued growth of the housing industry will be necessary heading into the future, especially as the Australian economy begins to settle following the mining boom.

For anyone looking to purchase Inner West real estate as investment properties following the cash rate cut, now could be the perfect time to get in contact with the team at Coopers Agency. Their knowledge and expertise will be paramount in helping you to achieve the property results you desire.