Unique circumstances for Adelaide property buyers

The Reserve announced it will cut its official cash rate by 1 percentage point to 3.25 per cent, effective 3/02/09. In practical terms for homebuyers, financial institutions that commit to passing on the cut in full, effectively offer a standard variable rate of 5.91%
For a family with a $400,000 loan, Tuesday's rate cut, if passed on in full, represents a monthly saving of $248. In addition to the savings from last year's rate cuts of 3 percentage points, (banks passed on about 2.78 percentage points) the total saving for a family with a $400,000 loan is $990 a month.
Buyer's general caution in the real estate market has resulted in a choice of property available and some quality properties scattered amongst the non performers. Rental demand is strong and strengthening.
Investors are back into the 5-6% yield and the first home buyers are being offered the equivalent to their deposit,stamp duty and money to spare. The government has released its $42B economic stimulus package. Fuel prices are down.
These circumstances were completely unexpected and are unlikely to stack up this way again in our lifetimes. Individuals and society learn from their mistakes. The upside of this is that investors have the opportunity to safety and strategically build their portfolio while first home buyers can confidently get their foot in the door. This "perfect storm" cannot last forever, but while the circumstances are such, purchasing real estate in the resilient Adelaide property market is one of the strongest investments available.


If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to or call the team on +61 8 84631997