First things first.
Yesterday I had a drive through the Southern Adelaide having usual fun of counting For Sale signs. Interesting observations:
1. Out of 173 signs 160 had "Sold" or "Under Contract" sticker on them. And this is not the hottest market time of the year. Panic purchasing usually starts 6-7 weeks before Christmas. I do not understand this phenomena. Why people do not buy in winter when it is less competition? The only explanation I have - most of the people can not think rationally.
2. I have seen 5 "For sale by owner" signs. Four of them I have seen 6 months before. Again - the same phenomena. People can not think rationally. What is the difference between owners and RE agents? Both have two arms and two legs (and other body parts). Difference is that agents are equipped with the knowledge to pressure you into the sale you do not want. On the money side, buying from the owner has the advantage of less competition from others. Needless to mention that you can always have a discount equalling to at least a half (if not all) agents' commission.
Speaking about myself at the boom times I never even wait for the owner to declare their intention to sell. I always carry a bunch of pre-printed offer forms, and when I see suitable property I simply write in my offer and drop the form into their letter box.
"State of the States" report from Commsec has found that SA has the lowest rate of new housing starts. I would not mention that SA is the only state where migrants can get state sponsorship living in the capital city. Steady increase of demand with dwindling supply. Means that every day you rent, you doing yourself a damage.
The last, but not least.
Please read carefully and pay attention to the following:
1. Adelaide has the highest rental return in country
2. Adelaide is the cheapest mainland capital (lowest investment entry point for the masses of mum and dad investors who are looking to preserve their money when China enters the crisis)
3. Substandard property in Chinese cities costs 22 average annual salaries. Chinese Real estate is the most expensive in the world. This is in case you believe the nonsense that Australian price/income ratio of between 7 and 8 will cause "property crash". This "ratio" is largely meaningless for the property markets. In the most Asian countries and Eastern Europe this ratio is between 30 and 40.