- LaurenParticipant@lauren223Join Date: 2017Post Count: 2
I am wondering what everyone’s thoughts are on the recent articles coming out that Perth’s property market has bottomed out and will begin to rise again? Will it be a slow or fast growth? Or no growth at all?
Any gut feels or hunches?
I am new to investing and am wondering if now might be a good time to begin looking at buying if the prices are expected to go up again?
LaurenJaxonParticipant@jaxonaJoin Date: 2014Post Count: 284
I Study market Australia wide, if you can buy good solid purchase that cannot be rebuilt for that price, thats a strong point.
if you can get a 7% yeild get started and get your first property!
all the bestDavid HallParticipant@wiggles2Join Date: 2014Post Count: 66
I am very active in the Perth market. It has definitely come off the bottom. We have gone from a peak of 17,000 properties for sale (Buyers market) 18 months ago to a balanced market of 13,100 properties for sale (balanced market). Over the last 4 weeks this number has come up to the low 14,000’s as the spring listings hit the market. 6 months ago I was the only offer, now the majority of the offers I am making are competing.
For example, I picked up a demolish and duplex property on Friday. I have an established relationship with the selling agent. She had not priced the property for the duplex potential, as she was unaware of a recent change to the zoning rules. It was advertised on Monday. I rang on Tuesday to arrange for an inspection prior to the first open on Saturday, with a view to getting it before the first open. Initially the owners wanted to wait until the weekends open, and wouldn’t let me through. On Friday at 4:00pm the selling agent rang to advise that she had received a cash, site unseen offer. I was able to inspect with my client at 5:00pm and get a slightly better cash offer accepted prior to the first open.
If it had gone to the open home, there is no doubt in my mind it would have gone for $20,000 – $30,000 more. The best bit is, I’ve got a seller lease back for 6 months, pending credit checks.
The rental market is also beginning to recover, with the number of properties for rent dropping by 80-150 every week. If this continues we will be back into a balanced rental market in 8-12 months time. Once the rental market is balanced, this will put upward pressure on the housing market as tenants decide to buy rather than rent.
Finally the WA jobs market is recovering. 3 new iron ore mines are committed to construction (BHP, RIO and FMG) in order for these miners to maintain current production levels. Todd energy may also be about to push go on a new iron ore development. Lithium is starting to take off and gold is doing well. Jobs are the fuel of house price growth.
I hope this helps