Single rate cut not enough: Monique Sasson Wakelin
Property investment adviser Monique Sasson Wakelin says the latest RBA rate cut was too little, too late for any material impact this year on property markets.
The managing director of Wakelin Property Advisory says another rate cut is likely before February 2012.
“If that does happened I think this market is going to kick because a half a per cent has a much greater financial impact on people’s financial affairs and commitments than a quarter per cent does.”
Wakelin expects any rate cut would energise the market in 2012, having sent the message that the upward cycle of interest rates is over.
Wakelin pointed out that Australia had endured 175 basis points increase in rates since April 2009, so the recent rate cut would shore up confidence in the economy.
She anticipates some renewed capital growth in 2012 – “probably around the middle of the year”.
She said there had been a welcome improvement in affordability, but not a slump in Melbourne, Wakelin told listeners to Hilary Harper’s 774 ABC program on Saturday.
