Rate cut 'won't kick-start property market'
The Reserve Bank of Australia's recent rate cut will not kick start the country's ailing property market, which witnessed a decline in value of 1.2 per cent in the third-quarter of this year.
According to Brett McKeon, managing director of the Australian Finance Group, a lack of confidence in the federal government is having a hugely negative impact on potential home loan customers.
Speaking to the West Australian, he said that the country is walking into one disaster after another and consumers, instead of pushing ahead with investments, are being encouraged to stay in "savings mode".
However, despite the bleak outlook, Mr McKeon is hoping for a property recovery to get underway at the end of next year. He said that at this point, his company would be in a good position to take advantage of the upturn.
Existing mortgage customers are expected to take advantage of the recent rate cut and pay off more of their outstanding debts, chief executive officer of Westpac Gail Kelly told ABC Inside Business.
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