Rate fall an opportunity for new home buyers

The Urban Development Institute of Australia (SA) acknowledges the latest decision by the Reserve Bank of Australia to lower the cash rate is a move to energise the economy.

UDIA (SA) Executive Director Terry Walsh says he hopes the major banks will now promptly pass on the rate cut to their customers in full.

“History shows that homebuyers often remain cautious and sit on their hands around election time, however there has never been a better time to buy a new home,” said Mr Walsh.

“The housing construction grant of $8,500, the First Home Owner’s Grant of $15,000 (up to the value of $575,000) and stamp duty concessions on the purchase of off-the-plan apartments in the Adelaide CBD and extended areas (capped at $21,000 for a $550,000 apartment) highlight the opportunities currently available.

“Combine this with a market of subdued buyer activity amidst some early indicators from interstate cities that buyers are returning to purchase property – and add in the latest interest rate fall – and all the ingredients are there to prompt hesitant buyers that now is an excellent time to buy.

“In addition, the services sector and the retail sector will benefit from this latest rate fall, with costs of doing business likely to be subdued, albeit while utilities prices remain high.

“The costs of doing business including specific input costs of materials and utilities, as well as increasing regulatory costs, have hurt margins so any relief associated with the rate fall is certainly welcomed.”

FURTHER INFORMATION:  Please contact Terry Walsh at UDIA on (08) 8359 3000