Despite the dramatic change in Labor Party leadership and newly installed Prime Minister Kevin Rudd announcing a new-look cabinet, there will be little should change for brokers, it has been claimed. MFAA CEO Phil Naylor told Australian Broker the move will not hamper the association’s lobbying efforts.
“Ministers come and go, whether they’re the same party or different parties, and we always learn to deal with them,” Naylor said.
Meanwhile the RBA’s decision to keep the cash rate on hold has disappointed the Housing Industry Association (HIA), which claims in an article in Australian Broker that it will reduce the potential for residential building activity to support the national economy.
“The RBA had the option to reduce rates today and deliver badly needed support to businesses and households. By failing to move, the weaknesses in the residential construction industry will merely be prolonged,” says HIA senior economist, Shane Garrett.
Mortgage Choice spokesperson, Belinda Williamson, says there are indicators of an improving outlook for the Australian economy, which the RBA would have taken into consideration before making its decision yesterday.
“The strength of the Australian dollar has lessened recently and this is expected to have a positive impact on parts of the economy once the effect trickles through. Specifically, the impact should be felt in the non-mining sectors such as retail, manufacturing and tourism industries, which in turn will likely drive local employment.”
Williamson adds, “For those looking to get into the housing market, the current low interest rate environment can be extremely appealing and may be the catalyst for buying now. Lenders are competing for business and this is seen across the board, from the major banks right through to credit unions and smaller non-bank lenders.”
Perhaps it is just business as usual, until the politicians decide when they will hold the next election, what else can you do?
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Source: Australian Broker Online