Do you want to expand your portfolio of rentals in Adelaide? Alongside the fantastic cultural ventures on offer in the South Australian capital, it could also be a great time to invest in its property market. The Reserve Bank of Australia (RBA) has stood firm on its earlier decision to trim the official cash rate by 25 basis points in May, retaining the record low 2 per cent for another month at its 2 June board meeting.
RBA Governor Glenn Stevens highlighted that the bank will continue to keep an eye on the economic and financial climate, but implied that the cash rate would likely stay at its current level for the time being.
"Having eased monetary policy last month, the Board today judged that leaving the cash rate unchanged was appropriate at this meeting," Mr Stevens said in a 2 June statement.
This could be great news for investors in Adelaide. Already, more and more Australians are extending their experience in the real estate sector. In fact, according to a report from the Australian Bankers Association, there was a whopping $1.5 trillion of housing-related borrowing in 2014 – and savvy buyers are continuing to take advantage of dwindling interest rates to purchase investment properties.
The Housing Industry Association (HIA) also echoed how important interest rates are to real estate, especially to the home building segment. South Australia saw a 15.8 per increase in the number of detached house approvals during April, according to the HIA, and the Reserve Bank's decision could support further improvements – a positive sign of development for those looking to invest in the City of Churches.
"Housing demand will also be assisted by this highly favourable interest rate environment," HIA chief economist Harley Dale said in a 2 June release.
With low interest rates buoying demand and encouraging activity in real estate, it could be a great time to jump on the bandwagon. If you'd like to nurture and grow your investment portfolio, get in touch with the professional property management team at Ray White Adelaide.