Petrol Prices Plunge
Households are receiving significant benefits from lower petrol prices which equate to almost two interest rate cuts.
Retail petrol prices have fallen by about 48 cents per litre since July 2014, which should save most household around $50 a month. This is very close to the average savings of two rate cuts by the RBA (dependent on loan sizes).
RBA Rate Cuts
In addition to the savings from lower petrol prices the Reserve Bank cut interest rates by 0.25% at it's last meeting in February.
The latest rate cut by the RBA has been welcomed and economists, in addition to myself, are predicting at least one more interest rate cut in the coming months of 2015.
Shane Oliver, chief economist at AMP Capital, said that the Reserve Bank had been forced to cut rates and that it had good reasons to cut it again.
What does this mean for property investors?
The short answer is, opportunity!
With the property market still tipped to increase in value during 2015 and beyond, all time low interest rates make it very affordable to get into investment properties.
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