“Perth property prices to rise by 6%”, say prominent forecasters.
Perth has been waiting to hear a positive forecast for Perth real estate since 2014!
According to Core Logic’s head of research, Tim Lawless, the 6% increase should follow the .4% increase experienced in December 2019.
Much of the increase will likely come NOW as a result of the Reserve Bank of Australia’s cutting the cash rate to a new record low of 0.5%.
Some major lenders are now offering rates to investors lower than those for owner-occupiers. This is rare.
We are advising buyers who missed out in 2019 to recheck their mortgage brokers as there are better finance deals around than there were in the latter part of 2019.
If you are considering investing in 2020, start the process now, with the present interest rates at the levels they are now, it’s clear that the finance lenders want your business.
From our observations, there is already a gradual surgent of interest in investing in Perth property.
As a Buyer Agent’s, Buying Perth Real Estate role is to seek out the best investment properties opportunities that the market offers.
In undertaking this, we stress to our clients that we always look for property that has the potential for long-term capital growth paired with an immediate rentability factor.
Sometimes it can take a fair bit of searching to find the home of your choice or the ideal investment opportunity, but that’s how we earn our keep.
We are often able to find properties that the average person hasn’t the time or perhaps the knowledge to locate. Armed with our experience, we’re able to give buyers the confidence to make a move into the market. As a result, our buyers are amazed at our results.
In addition to investors, first home buyers, home upgraders, home downsizers, Australians working overseas buyers are all benefiting from our services.
As a footnote, we strongly urge those who are interested in buying shortly to contact us. In the current market, the sooner you purchase more you will save. Prospective purchasers who snooze for much longer are highly likely to lose by having to pay more in a rising market than what they would have by acting promptly.
Fear is back. With a vengeance. This time it’s not the economy scaring people, it’s called coronavirus.
The OECD says that Australia may be “one of the worst affected economies” from the coronavirus outbreak. At the same time, another headline screams, “Houses to Hit Record Prices in Weeks”.
We are already seeing Investors entering the Real Estate market in Perth, after shifting their funds from the share market to a safer long term investment in the Property market. As one investor said, “I have lost big time on the share market cause of the Coronavirus Scare, but my real estate investments are still returning a regular monthly return and the asset is still good.”
With such varied opinions – and in full knowledge that media often ‘hypes’ a story to attract readers or viewers – how are we to act if we are buying in today’s real estate market? And what effect, if any, will the coronavirus have on the Perth property market?
Well, first, what about “No Chinese buyers”! The percentage of buyers from China has long been over-estimated in Australia, especially in the day-to-day housing market. Homes will continue to sell well without foreign buyers.
Generally speaking, prices in the Perth Real estate market are unlikely to be impacted unless the coronavirus escalates severely.
Perth real estate values are relatively low, and there’s only one way the market should go: Up!
People still need to buy homes. Indeed, we Western Australians see our homes as sanctuaries. A home is the one place most of us feel safe.
What will or should change, however, are habits. Just as we are now taking sensible precautions in our daily lives, so must we take precautions in our real estate lives.
The one thing that must stop is hordes of strangers wandering through family homes. As buyers agents, our clients give us a detailed brief, and we do all the looking for them.We present them with recommendations, and once a home or property investment is selected, we negotiate the lowest price possible, following the transaction through to settlement.
This process is how buyers agents in Perth earn their fee.
It’s incredible how few buyers realise an obvious point: There are 10,080 minutes in a week. And yet, when you want to buy a home, there are typically 30 minutes in a week to inspect most home opens with real estate agents.
This is where an experienced buyer’s agent in Perth can save you time and money. We’re looking all the time.
With the coronavirus scare, it’s your chance to appoint Buying Perth Real Estate to do all the groundwork for you, so you can enjoy being home safe with the family.
As a buyer, you probably don’t want to inspect homes with hordes of other strangers – many of whom may be coughing and sneezing.
If you see a home you like, you simply advise your buyer’s agent and let them do the groundwork for you.
As to the big question of whether prices will drop because of the coronavirus and whether you should delay your decision, the truthful answer is: no one knows.
It’s unlikely, but the more significant point is: if you are a home buyer looking for a family home in Perth, what does it matter?
If you are buying a home and upon consulting with your buyer’s agent, you are confident you can safely enter the real estate market. And, if you intend to live in that home for many years, how will it affect you if, after you buy, your home’s value drops?
While that may briefly concern you, a price drop will make no difference to your enjoyment of your home.
Buyers often ask: When is the right time to buy? The answer to that question, if you are a family home buyer (not an investor) is this: The right time to buy is when you find a home you love that you can afford. Never mind what is happening in the rest of the world. Focus on what is happening in your world.
As always, of course, in all aspects – financial and health – your priority should be to stay safe. The only thing we have to fear is fear itself.
In our first blog, we discussed the importance of property investment as an integral part of growing wealth. We also advocated appointing Buying Perth Real Estate as your Buyer’s Agent as a fast track to building a personal property portfolio – a portfolio comprising chosen properties with the most favourable terms and potential.
In our second blog on this topic, we covered was location and selection.
As an experienced Buyers Agents, we are continually reviewing all areas of the real estate market in Perth and regional areas for our clients. This knowledge puts us in the box seat to identify the best areas in Perth for buying property in the current market.
Your first move when engaging our Real Estate Buyer’s Agent Services is perhaps the most important. It is the initial discussion we have with our clients to establish all of the details. We call this ‘The Brief’.
From there, our action is as follows
We discuss suitable properties, areas, location, and facilities most important to you, whether it is your home or for an investment.
We then produce a selection of properties that meet your criteria contained in The Brief.
We receive summaries of the properties showing all the details for you.
We arrange for a private inspection of the properties on your shortlist.
Once the inspection is complete, and you choose your ideal property, we move to the next step.
Preparing the offer to purchase is crucial – we make sure it covers all of the conditions to protect you throughout the negotiating process from offer and acceptance through to settlement of the property.
Now we move onto negotiating.
Negotiating Negotiation is an art in itself. So many buyers think that it’s a case of merely coming up with a number to see if the sellers will accept it. Invariably, they don’t, and it leads to disappointment and often the sense of loss.
In the Perth real estate market – the current climate, in particular – there is often room for an experienced buyer’s agent to negotiate property at a much less a figure than the sellers are asking.
Preparing for the offer We spend a considerable amount of time with the buyer before even selecting the chosen property. The buyers must have a good understanding of their financial arrangements and have prior finance approval if necessary so that their offer can be a desirable offer not only in terms of price but also the conditions and speed of settlement.
The quicker the settlement, the more negotiation power we have in securing an attractive price on the property accepted. Even first home buyers in Perth can benefit from making these prior arrangements under our direction. Condition of the property needs to be taken into consideration when making an offer, and any minor or major repairs and maintenance need to be counted as an after cost for the buyer.
The buyer at this stage must also understand the costs of settlement, including stamp duty, conveyancing costs, and adjustments of service costs for the property. All these are adjusted and paid at settlement.
It is essential to understand the seller’s motivation for selling the property and the plans the sellers have after selling – this often makes a significant difference in how the offer is structured and presented.
As experienced buyer’s agents in Perth, we are not only able to search out the best property available to fit the buyers brief, but also negotiate at the best possible price for the buyer.
In Part Four, we will consider the investor who wants to purchase, renovate and flip. We’ll look at some specific examples. Keep an eye out for this blog.
By reading the signs and using our experience, you can tell when the real estate downturn has ended, and when the upturn begins (or began)!
In our recent blog, we discussed the importance of property investment as an integral part of growing wealth.
We also wrote about the potency of appointing Buying Perth Real Estate as your Buyer’s Agent. How it can be a fast track way to building a personal property portfolio; a portfolio comprising of chosen properties with the most favourable terms and potential.
Location, Location, Location
Some properties make better investments than others.
The goal for any buyer should be to get the right price for the right property, not just the lowest price on any property.
To achieve this goal, an accurate assessment of the market value and the rental potential, together with a valued opinion of the location are just a few of the ways a Buyers Agent works in Perth.
Whether you’re a first home buyer in the Perth area or a seasoned investor if buying real estate in Perth, it requires the attention to areas such as rentals and sales activity.
Whether you are a first home buyer or downsizing or upsizing in the Perth real estate market, it becomes increasingly important to use an experienced buyers agent in Perth.
Location and selection.
As experienced Buyers Agents, we are continually reviewing all areas of the real estate market in Perth and regional areas for our clients. We see the areas where the best property buying in all of Perth are located.
Because of our coveted relationship with so many real estate agents, we find that up to 30% of properties sold aren’t even advertised to the public.
“Why? you may say.” There are plenty of reasons.
Some sellers require a quick sale; others don’t want the expense and inconvenience of going through a lengthy auction process, others wish to protect their privacy and don’t want weeks of having home opens.
Agents look forward to hearing from Buying Perth Real Estate as they know us as the experienced buyer’s agent in Perth.
They know our clients are genuine buyers and have their finance arrangements organised well in advance to enable a quick and trouble-free sales process.
The agent works and is paid by the seller and they are their top priority while we as a buyers agent work exclusively for the buyer.
we receive no payment from the agent, this way there is no conflict of interest
Buyers Agents/ Buyers Advocate Fees
Without exception, our clients report that the dollars we save them from our years of experience in negotiating real estate contracts, save them the cost to use our services – sometimes many times over.
Next, we will go through the negotiation process and how it works in your favour. Look out for this blog.
By reading the signs and using our experience, you can tell when the real estate downturn has ended, and when the upturn begins (or began)!
Property investment is an integral part of growing Wealth, and there are many areas to explore before diving into or adding to your investment portfolio.
Appointing Buying Perth Real Estate as your Buyer’s Agent is a fast-track to building a Personal Property Portfolio – a portfolio comprising your chosen properties with the most favourable terms and potential. Perth property prices to go upMarket analysts have reported that Perth rentals and sales will represent the best property buying in Australia in 2020. (Core Logic, RP Data)
How a Buyer’s agent works here in Perth First, you engage us, selecting us to work for you. We discuss your medium and long-term goals in the purchase of the home of your choice; be it to live in, keep for investment or renovate and flip.
It is here that the experience of a buyer’s agent in Perth can save you real time and money.
As a buyer’s agent, we are looking at potential properties every day, continually reviewing investment opportunities for our clients. We have access to off-market properties because of our association with so many agents. Further, we’ve built up a multitude of relationships over the 45 years we’ve operated in the Perth Real estate market. We do all the property hunting and bring to you the prize properties that will fit your budget and criteria.
You may be considering doing all of this yourself. If you’re going solo, here are some of the areas that you will need to cover: > What to buy > Where to buy > When to buy > Talking to mortgage brokers > Selecting a settlement agent > Viewing a range of properties sometimes up to 50 to 60 or more > Writing the most effective special conditions on your contract > Getting inside knowledge to assist in your negotiation strategy > Getting building inspections done
These cover a number of the obvious things you must take into account. As a result, many people delay and watch the market go down. They think it will go even further.
By reading the signs and using our experience, you can tell when the downturn has ended, and when the upturn begins (or began)!
With our extensive knowledge of the property market over the last 50 years, we then create a list of possible properties that fit your criteria for you to evaluate.
After you have chosen one that you would like to view, we then make plans for you or your elected representative to view.
Once you totally agree on a property, we then set to work to purchase the property for you at the best price possible.
Our service and research help to protect you against overpaying for the property – and in fact what we can save you is likely to more than cover our service fee.
Many property buyers do not fully understand the role of a real estate agent.
You may think that, that friendly agent will get you the property at the best price possible. That is not the case – as they are a representative of the seller, the agent’s role is to get the maximum sale price they can for their property.
Our job is exactly the reverse – to get you the property at the best buying price that we possibly can – a very big difference!
The end result is that our clients often save 7-9% or more off the property price, (based on comparable sales and the current market)
Our question to you is simply: What’s the cost of not using our services?
In addition to this;
We can often gain access to what is sometimes termed as the ‘non- disclosed market’ or off the market properties.
There is always a number of these properties available in most areas provided you know where to look for them. These are properties that aren’t publicly listed because sellers did not want the sale of their property to be known.
The reasons for this can range from marriage breakdowns to financial problems, to wanting to avoid real estate agency selling fees. Sometimes sellers directly approach a buyers’ agency rather than going the route of a selling agent to avoid their property being publicly listed.
Its important to make a sound offer on the property.
An offer that covers all the purchasing details relevant to the Western Australian Transfer of Land Act.
We ensure that you add in the correct conditions in your offer and walk you through the settlement process and hand over.
Even those who have purchased before with no problems often discover from our experience that the process and conditions could have been prepared in a way that was much more in their favour rather than take the advice of the selling agent.
Most property buyers are unaware!
Many people purchase properties themselves without using the services of a buyers’ agency.
We can tell you, however, that most people are simply unaware as to how much better they could have fared – if they had used our services.
When engaging Buying Perth Real Estate as your Buyers agent, our clients realize the benefit and saving they receive by trusting an experience real estate negotiator to act on their behalf.
Consider the benefit of engaging a person who has negotiated 1000’s of property deals over a lifetime of 50 plus years as a licensed real estate agent, against the limited experience obtained by asking friends, reading books, internet research or even perhaps purchasing or selling one or 2 plus properties during their life.
What is the cost ?
As it is only after open discussions that we can determine your needs and the exact cost, may we invite you to call us for a chat. Tell us what you’re seeking and we will give you a clear understanding of what the fee will be.
There’s no obligation… simply call us on 08 62150200 or 0412 926 190.
Our mission is to facilitate exciting and lifetime memories for our clients by securing the right property in the right location at the right price!
If you are confident in your ability to negotiate, and the special conditions you should add to your contract, then you probably don’t need the services of a buyer’s agent.
Whether you are buying a house, renovating your kitchen or doing your taxes, you always have the option to do the work for yourself,
But remember the lack of expertise can end up costing you more than you think it will.
The buyer’s agent Buying Perth Real Estate ensures you are purchasing the right property to suit your purpose, as well as making sure you are not overpaying for a particular property.
Contact us for consultation now and find out how we can help you with all your property buying needs.
Click Here or Call us at 08 62150200 or 0412926190
Perth property prices to rise by 6% says prominent forecaster
“ We don’t expect a Blast off of rocket proportions but we do expect that we have turned the corner and a selective property purchase and investment will be a wise choice if you’re looking to get in at the bottom of the market while there is still some good bargains available.” Contact us “
House prices in all capital cities across Australia are expected to surge in 2020 – and according to some forecasters, 2020 is likely to be the beginning of a lengthy period of price rises.
While Sydney and Melbourne are expected to rebound by double-digit figures next year, it is interesting to note that Perth prices are expected to turn from the dour period it has had since 2014, to enjoy a 6% increase. According to CoreLogic’s head of research, Tim Lawless, the 6% increase following the 0.4% in 2019 will add $27,204 to the median value currently sitting at $453,393.
Much of the increase is expected to be driven by expectations of the Reserve Bank of Australia cutting the cash rate in the first half of 2020 to a new record low of 0.5%.
Mr Lawless is predicting that a reduction in standard variable mortgage rates, following the RBA’s adjustment to the cash rate, will result in investor landlords being able to service a loan with rental income and in some cases make a cash flow profit.‘As a result of this, investors are likely to be motivated by prospects for capital gain, as well as the fact that gross rental yields, although generally low, are likely to be higher than the cost of debt,’ Mr Lawless said.
From our observations there is already a gradual resurrection of interest in investing in property in Perth.
This has been fuelled by an increase in demand for rental property to the point that the Perth vacancy rate has been hovering around 2.5 – 2.3% for much of 2019 and as a consequence rental prices have increased in many of the tightly held suburbs.
As buying agents, Buying Perth Real Estate sees its role to seek out the best investment property opportunities that the market offers.
In undertaking this, we stress to our clients that we always look for property that has potential for long term capital growth as well as having an immediate ‘rentability’ factor.
Sometimes it can take a fair bit of searching to find the ideal investment opportunity – but that’s how we earn our keep – finding property that the average punter either hasn’t the time or possibly sufficient knowledge of the local market. In addition to investors, first home buyers, home upgraders, home down sizers, Australians working overseas and overseas buyers can all benefit from our services.As a footnote we strongly urge those who are interested in buying in the near future to contact us because the sooner you make your purchase, the more you will save.
In other words, prospective purchasers who snooze for much longer are highly likely to lose by having to pay more in a rising market than what they would have by acting promptly.
“We don’t expect a Blast off of rocket proportions but we do expect that we have turned the corner and a selective property purchase and investment will be a wise choice if you’re looking to get in at the bottom of the market while there is still some good bargains available.”
For more information feel free to visit our website (Click Here) or contact me on 0412926190
West Australia’s First Time buyers should be getting a better deal
In a number of states across the country including Western Australia, First Time Buyers are being encouraged to build or buy new. A question arises, is that really the right move for them to make?
The First Home Buyers Grant, only available if First Home Buyers build or buy new is obviously skewed towards helping the home building industry – but is it in their interests?
I don’t think so!
As a professional in the real estate industry for over four decades, I strongly agree with Damian Collins, President of the WA Real Estate Institute. He recently made the point that, “The first home people buy is the most important.” This is because it is capital growth from their first home that will enable them to afford the trade up to their next home.
The reality is that better capital growth generally occurs in established suburbs rather than outer suburb localities where new housing and subdivisions are being established. So to this degree the First Home Buyers Grant is pitched, and it is not doing First Home Buyers many favours at all.
As a Buyers’ Agent I strongly advise First Home Buyers purchase their property extremely selectively. If they wish to build new, I go out of my way to find a block in a locality that has potential for capital growth.
Unfortunately First Home Buyers are not being given the guidance they should.
If a First Home Buyer is able to purchase without recourse to the First Home Buyers Grant they’re best advised to buy an established property. The reason for this, particularly when using a Buying Agent is that prices on established homes are almost always negotiable. People selling an established home are often motivated to sell and will consider offers if the offer is presented professionally.
The seller could be keen to upgrade, move to another location or be forced to sell because of circumstances; this means the price could be negotiable. Whereas unless builders and developers are desperate to sell in abnormal market conditions, it makes it unlikely to be able to negotiate on a new build.
In saying that, the discount obtained through a professionally negotiated offer could well be equal to or more than the First Home Buyers’ Grant. A perfect reason to use the services of a Professional Buyers Agent.
As a person who has been in the real estate industry for a considerable number of years. It surprises me that more of Western Australia’s First Home Buyers aren’t using the services of a Buyer’s Agent.
It takes years of experience in the real estate industry to know what the right price of a property is, within a particular market. It is not necessarily the asking price or what the selling agent is asking for it.
Buying Perth Real Estate is a buyer’s agency dedicated to finding the right property for its clients and to save them money by negotiating the best deal possible on their property of choice.
Let us Help you, click here or give us a phone call: 0412 926 190 – you’ll be pleased for having made the call.
While Perth’s property prices have continued to fall throughout 2019, green shoots are appearing which suggest West Australian property slump could be close to its long-awaited end. Activity improved across both sales and rentals in Perth throughout October with the Real Estate Institute of Western Australia (Reiwa) data revealing Perth rental and sales activity on the rise by 2% in sales transactions and 16% in leasing transactions.
While WA’s housing fortunes aren’t rebounding as quickly as the Eastern States, REIWA Deputy President Lisa Joyce said it was encouraging to see the market activity lift across both sectors as well as improvements on all aspects of the rental market as well.
Perth residential sales market
Core Logic’s latest home value index shows the rate of decline in dwelling values in Perth at 0.4% in October representing a slowdown in the rate of price decline as Perth trends towards a more stable property market.
Core Logic research director Tim Lawless said it was becoming increasingly clear the housing market was gathering pace off the back of lower mortgage rates and improved access to credit.
Demand for housing is responding to stimulus measures, including mortgage rates which are now lower than anything we have seen since the 1950’s and improved mortgage serviceability test following the recent reductions in interest rates.
Perth Real Estate on the rise
In terms of a rolling three-month trend, Perth values recorded their smallest decline in 14 months according to the Core Logic data.
Lisa Joyce said this was pleasing to see and that in the coming months, Perth could expect to see a gradual improvement similar to the other capital cities in Australia.
She went on to say that although overall prices remained the same as the previous month, reiwa.com data showed that 26% of suburbs saw improvements in the median sale price.
She said there had been a lot of uncertainty surrounding the property market this year. While we are not seeing the significant shifts in levels we experienced during peak times, it is a positive sign to see the increase in sales and rental activity.
Perth remains favourable for buyers and investors at the moment. Joyce’s advice for those thinking of purchasing their first home, or trading up or investing, is to act soon. With indicators beginning to move, the opportunity to take advantage of the current conditions may be short.
In their recent analysis of the real estate market across the nation’s capitals, domain.com.au put Perth under the microscope with the following insights.
To buy property in Western Australia is totally different to other parts of Australia and in fact throughout the world.
Perth’s rental market has strengthened over the year, reflected in rent price increases and a falling rental vacancy rate.
Median asking rents for houses in Perth were up 5.7 per cent in the year to September, to $370 per week. This marks a recovery from a rental price trough of $350 in September last year. It is also the strongest annual growth rate in house rents for more than six years, when the mining investment boom was ending. Nonetheless, Perth remains the cheapest capital city to rent a typical house.
Perth units saw a similarly strong rise in rents year-on-year, at 3.3 per cent (although unit rents remained unchanged over the quarter, at $310).
Rents increased the most in Perth’s inner suburbs over the past year, while rents were unchanged in Mandurah.
Perth has seen the second steepest annual decline in the rental vacancy rate behind Darwin. The rental vacancy rate fell by 70 basis points to 2.7 per cent in September 2019.
These figures point to a tighter Perth rental market. While this is not good news for renters, it may be a sign of a broader turnaround in the Perth property market. Stronger population growth, combined with a slowdown in new housing construction, is seeing vacant properties being slowly absorbed. The WA economy is also rebounding, driven by improving conditions in the mining sector.
Republished from domain.com.au, October 2019
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