Last month we held our 6th Annual Real Estate Forum at the Rossmoyne Bowling Club.
Well known property analyst and media commentator Gavin Hegney, and Shaun Collins from the Macquarie Bank wealth management team, presented to more than 200 of our clients on July 4th.
Talks covered cyclical patterns seen when investing in Real Estate and examples of how the right decision at the right time can be crucial to any good property purchase. Gavin and Shaun provided confidence that our market is currently in the optimistic cycle and indicated now is the time to be buying Real Estate in the Perth Metro Area for future growth.
Western Australia has seen International Buyers decrease due to the increased taxes and fees associated to Foreign Property Acquisition, however with WA’s economy and confidence in market conditions improving we have seen an increased number of Buyers looking to shift (sell and buy) within the Metro area to superior suburbs for School and/or Lifestyle option as the affordability differential has decreased.
Moving from a depressed market in 2018 to an optimistic market for the property owner in 2019 means that buyers are seeing the current conditions as the right time to buy. Factors which have affected the Real Estate Industry are; property prices having been in decline since 2014, current record low interest rates and changes made by APRA.
APRA is allowing lenders to review and set their own minimum interest rate floor, for use in serviceability assessments and utilise a revised interest rate buffer of at least 2.5% over the loans interest rate. Instead of using 7% as the minimum serviceability rate. We should also see improvement in returns for investors holding residential property.
The number of properties to rent in Perth has been in decline for some time and with a lesser supply and a higher demand currently, we have already seen an increase in the median weekly rental amount, low vacancy rates (currently 2.9% Aug 2019; Source REIWA) and a reduction of days on market to lease. Perth’s Metro area could see some rents increase as high as 20%.
The evening was a great success with plenty of information to take away from our exhibitors and speakers. Our team very much enjoyed hosting the event and we look forward to welcoming you all to the next one.
If you would like to attend in 2020 or would like a copy of the information pack emailed to you, please register your interest with us on the details below:
08 9259 6999
2019 EXHIBITORS & SUPPORTERS –
Atrium Homes | Total Home Inspections | Buurman Finance Solutions | RM Surveys | Express Property Settlements | Central Screens & Central Lock and Key | Build Financial Solutions | Spice Tax | Equire | Megara | REA | Perth Expo