Interest Rates Cuts

Posted by Norm on February 3, 2009 4:15 AM

Today the Australian Reserve Bank announced they will cut interest rates by a whole 1%.

This is the first time I have ever seen interest rates this low in my life. I guess my thoughts on this is both positive and negative. Positive in the sense I will be paying less interest each month. The increase of my cash flow is also good, meaning less of personal money is used to sustain these investments.

However negative in terms this will make housing more affordable and rentals less attractive.

However as an property investor it also gives me more reasons to re-enter the market to buy another property. Prices are relatively low and to service the loans are now even more affordable.

So this year my main goal is to find another investment property.