The RBA Just Cut Rates - Here are 3 Smart Moves Adelaide Investors Can Make Before Spring

Shayne Holmes
Jun 21
2 min read

Why this cut matters

On 20 May 2025 the Reserve Bank followed its February move with a second 25-basis-point cut, trimming the cash-rate target to 3.85 %—the first back-to-back easing cycle since 2020.

The cash rate climbed to 4.35 % in late-2023, plateaued, and is now edging lower. The change filters through to variable mortgage rates within weeks, giving investors a decisive window to act before spring listings swell.

Opportunity 1: Refresh Your Borrowing Power

Goal: Secure (or re-issue) a pre-approval at the new, lower serviceability buffer.

Why now? Most lenders load a 3 % buffer on top of advertised rates. A 25-bp cut adds roughly 2.5 % to borrowing capacity for the average wage-earner, enough to lift many first-time investors into Adelaide’s middle-ring suburbs.
In dollars: On a $600k, 30-year loan, monthly repayments fall by approximately $100 when the full cut is passed on.

PIC tip: Contact us to get an instant borrowing power assessment and list of suburbs that you can afford.

Opportunity 2: Re-gear Existing Equity

Goal: Refinance to release equity before valuations jump again.

Adelaide dwellings hit another record high in May and are up 4 % YoY, pushing owner-occupiers’ usable equity to new peaks. Pairing cheaper money with fresh valuations lets you:

Subdivide or add a granny flat (minimum 450 m² lots in many councils).
Accelerate a buy-and-hold upgrade—e.g., trade one high-maintenance cottage for two low-maintenance townhouses.
Lock in a multi-offset facility while rates are still heading south.

PIC tip: Plug the equity gap with our Subdivision Feasibility Road-map—a step-by-step workbook and 30-minute coaching call.

Opportunity 3: Beat the Spring Surge

Goal: Secure properties now while competition—and vendor expectations—are quieter.

Historically, Adelaide’s listing volume jumps up to 25% between August and October. Buyers who act early enjoy:

Less bidding pressure (clearance rates sat at 63 % last week vs. 71 % in October 2024).
Potential bargains as winter vendors trade speed for certainty.
Time to renovate before peak summer rental demand.

Focus on growth corridors flagged in our 2025 Hot Suburbs Report—think Salisbury East for yield and Woodville South for value-add plays.