Nat talks about the how the national market is affecting Perth investors and gives some tips on how to continue moving your portfolio forward in spite of such a flat market in Perth.
Summary: There has been a lot of hype in the last few months in relation to housing affordability and potentially a property bubble. When you hear of this banter most commentators are referring to the Sydney and Melbourne Markets. Not the Perth Market.
Over the last year Sydney has increased by 22.9% to now have a median house price of $1,000,616. Melbourne has had 10.3% growth with a median price $668,030. Generally when we see such steep growths in a particular market over such a short period of time, it is followed by a correction or slowing of that market. However this hasn’t occurred in these states and as such an announcement was made that three of the Major banks- ANZ Commonwealth and NAB would be increasing their fixed rates and variable rates. Macquarie has also followed suit. All banks except NAB are applying these increases only to investment loans NAB is apply to all property loans.
I believe the reason for this is to deter investors from buying property and hopefully slow down the market.
So what does this all mean? Well I feel that this really is putting Perth in an excellent position as investors start to feel the pinch in prices and repayments, Perth seems to show great opportunity for those wishing to invest in property with the hope of future growth.
Perth has had negative growth of -1.4% with a median now at $605,089. Due to this plateauing market one can negotiate a lot better on the purchase of a property.
At Subpro we don’t like to speculate on what is going to happen in the market and we definitely don’t encourage our clients to be speculators. Instead we follow an approach in which we take control and add value ourselves to the property as not to be reliant on movements in the market for you to realise your profit.
That being said by using these strategies and if the market does improve obviously your return improves as well.
If you would like to learn more about how we research our property opportunities or would like to use our buyers agency services don’t hesitate to contact us at firstname.lastname@example.org or http://www.subpro.com.au