Another round of rate cut by 100 basis points brought relief to home owners, property developers and investors. In a widely anticipated move by the Reserve Bank of Australia, it announced a rate cut of a full percentage point, bringing interest rate down to 4.25%. It’s the third consecutive rate cut since October 2008.

Banks are expected to pass on the benefits of the rate cuts to consumers and business owners. If banks pass on the savings to consumers, there would be a $250 per month savings in interest cost on a $300,000 loan.

For property investors on a standard variable rate, more rate cuts are expected come Feb 2009 (RBA does not meet in Jan) and increased rental, you can be assured of an improved cashflow from your property portfolio.

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