Barefoot Investor: Scott Pape said young people should be ‘p**sed off' with RBA's call to cut interest rates
On Tuesday, the Reserve Bank of Australia cut 0.25 per cent off the cash rate. The new rate of 3.85 per cent is the lowest Australians have experienced since 2023.
But, finance guru Scott Pape — better known as The Barefoot Investor — said young people should be 'p**sed off' with RBA's latest move.
He explained that while the cut would ease mortgage repayments for millions of Australian homeowners, it would likely make it harder for young people to join the property ladder because house prices will rise in coming months.
'If I was a young person right now I would be pretty p**sed off,' Mr Pape told news.com.au
'Every time a young person gets close, it just keeps getting more expensive.'
He also blasted Labor's First Home Buyers Guarantee — it enables eligible home buyers to buy a home with as little as five per cent, instead of the normally required 20 per cent and it is expected to come into effect on January 1, 2026.
'It's stupid, totally stupid,' he added.
'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it.
'I don't understand how a responsible government can stand by and say this is a good thing.'
On the other hand, Michael Yardney from Metropole Property Strategists urged eager first home buyers to get in quick before the incentive kicks in and the price of entry level homes skyrockets.
'Property prices will skyrocket in early 2026 when Labor's five per cent deposit scheme comes into effect — get in before the crowd,' he said.
'Sure, prices seem expensive but that's what your parents said. Who wouldn't like to buy their parents' home for the price they paid.'
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