Is 2021 A Good Time to Buy a Property in Western Australia?

Have you thought of buying or investing in a property in Western Australia? Do you think you are financially and mentally ready to purchase a new home? Aside from considering your finances, one of the many things that you need to take into consideration when purchasing a property is timing. Knowing the right time to buy a property can help you lessen the risks of your investment and avoid a sudden drop in the value of your property.

To know if you are buying a property at the right timing, you need to do your research. You can also seek help from your buyer’s agent to give you information about the real estate market in WA.

With the current COVID-19 pandemic, purchasing property might be currently out of the question for investors due to the economic crisis that most countries face. But the situation of the Perth real estate market is different.

Perth’s Economic Rebound

Perth is one of the cities that made a very efficient response to the pandemic. Although the city had lost several months to lockdown, they immediately made a fast recovery from COVID-19’s economic impact. Thanks to the WA government’s well-controlled handling of the pandemic.

Since WA isn’t reliant on greatly affected industries such as tourism, the global economic turmoil had a lesser negative impact on them compared with other areas. Perth’s economy has been sustained by its continuous income from the mining industry. Moreover, the prices of iron ore and gold, which are WA’s major commodities, have surged and helped with Perth’s economic rebound.

Perth’s economic recovery also provided an opportunity for a growing property market.

The Situation of Perth Real Estate Market

Perth’s real estate market was quick to bounce after months lost due to the lockdown. Due to historic low-interest rates that are being offered by banks and other lenders, a stronger and wider demand has gone up. With the help of government incentives such as Homebuilder support and stamp duty concessions as well as the growing interstate migration from the resources sector, demand continues to grow while supply remains tight. 

Add to that the improving economic atmosphere as vaccines begin to roll out and businesses start to reopen, Perth’s dwelling price growth according to Real Estate of West Australia (REIWA) is expected to rise at a rate of 15% in 2021 and 2022. With further growing confidence in Perth’s real estate market, Perth’s real estate market is on track to record double-digit growth for the first time in 11 years.

If you are deciding if it is a good time to buy a house right now, we would say yes. Now is indeed a good time to buy a property in Western Australia, but be careful to select areas that will give you certain growth.

Use an experienced Buyer’s Agent to guide you through the process of finding, negotiating, and guiding you through to final settlement. Get a free consultation from Buyer’s Perth Real Estate and connect with experienced buyer’s agents or call Clive Elliot at (08) 6215 0200 or 0412 926 190.

5 Tips for Buying an Investment Property During an Unstable Market

It can be scary to purchase an investment property when the market is unstable. During periods of economic uncertainty like where we are today, real estate prices tend to be more volatile and many inexperienced investors often make impulsive decisions.

While you shouldn’t rush into buying an investment property during times like this, it can also be beneficial when you do it right. As unstable as a market can be, you can still buy a property that can profit you.

Here are a few tips for buying an investment property during an unstable market:

1. Follow experienced investors.

There’s a saying that you shouldn’t follow the herd, but instead follow the one who leads the herd. When buying an investment property, look for the insights of experienced investors and professionals when it comes to the real estate industry. There will be many voices telling you what to do or what to buy, but choose to listen to only those who are credible and trustworthy to give you advice.

Experienced buyer’s agents can help give you market insights and advice on what type of property can profit you during an unstable market. They have surveyed many properties in your local area and keep up with market trends almost every day.

2. Find a location with a strong local economy.

A good property location doesn’t necessarily need to be near the Perth CBD. Accessibility is definitely an advantage when investing in a property but another thing that you can check to know if a location is worth investing in is its local economy.

A location with a strong local economy will have a higher resale value in the long run. If there are thriving industries within the community, there will be a higher demand for properties. However, you should still do your research on the area’s economy. Since the market is currently unstable, will this thriving economy last until after several years? Consult your experienced buyer’s agent as they can help you with researching your target location.

3. Look for areas with room for development.

Aside from the current local economy, one more thing that you should look for in an area is its room for development. Are there government infrastructures that are planned to be developed? Are there new businesses that will be built? New infrastructures like hospitals and schools will create a demand for workers. 

An area with a thriving community and which supports job growth is a good investment choice as it will help increase the value of the property. 

4. Be aware of additional costs.

When purchasing a property, proper financial planning is essential to ensure that you are ready to make this investment. Buyers are always advised to save up for a deposit and have a regular income to finance the mortgage. However, the deposit payment and monthly mortgage aren’t the only costs that buyers should take into consideration.

One thing that most investors overlook is the additional costs that come with purchasing a property. Buying a home requires different transactions with various professionals. Hence, these entail additional fees such as lender’s fee, settlement costs, and upgrades. Make sure to be aware of these expenses so you can factor these into your budget. When planning your finances, make sure to have enough savings buffer so these unexpected costs won’t derail your budget especially during an unstable market. 

5. Think long-term

When buying a property during an unstable market, you might be tempted to buy something that seems profitable today, but will be useless in five to 10 years. For example, today, because of the global pandemic, we see many people buying properties in isolated areas. When things get back to normal, will these properties still be valuable?

Just like we’ve mentioned earlier, learn to keep up with market insights and look at properties in areas where there is a lot of room for development and growth.

Plan carefully before you buy during an unstable market, learn to manage your risks and to assess your risk-to-profit ratio. Don’t be afraid to ask advice from real estate experts on what type of property will profit you the most in the long run. 

Contacting an experienced buyer’s agent is essential as they will have greater insights into the market, a wide base of contacts with agents, and other marketing avenues that they have built up over decades in the real estate industry. Buying Perth Real Estate has decades of experience in the Perth real estate market and has a recognised reputation of delivering positive results for all their buyers. Get a free consultation from us today.

5 Reasons to Move to Perth, WA

We’ve all dreamt of living in the best city in the world. But what exactly do you look for to consider a city the best place to live in? Is it convenience? Accessibility? Nearby establishments? Finding the best place to live greatly depends on your lifestyle. Imagine what kind of lifestyle you would like to have. Then, find the best city that can satisfy your needs and wants based on the lifestyle you have dreamed of.

Are you looking for a vibrant city with lots of restaurants, museums, and theatres that you can explore? Or are you more of an outdoor-loving type of person? If you want to have the best of both worlds, moving to Perth in Western Australia might be your best option! 

Here are five awesome reasons to move to Perth:

sunny weather in perth

1. Great weather

If you’re looking for a place where you can wear casual footwear (thongs) and head to the beach when you want to, Perth is a great place to live as it almost always summer. Although it can get hot and dry during the summer months, most months are sunny with a light cool breeze. Days during winter are mild with only occasional rain, and it never snows!

people using public transportation in perth

2. Easy and convenient transportation modes

Convenience is a key factor why people choose to live in a specific location. When it comes to convenient transportation, Perth definitely won’t disappoint you! Getting around the city of Perth is easy with the public transportation services that are frequently available. There are two train stations and different bus ports that can take you around the city and into the suburbs.

If you prefer an active lifestyle, you can opt to take a walk around the city as Perth has excellent pedestrian paths. Also, along with the pedestrian paths, Perth also has the best bike paths and provisions for bike parking. In fact, many like riding their bike to work. You can maintain a healthy lifestyle by substituting car rides with bike rides. Moreover, you get to lessen your carbon footprint and help look after the environment.

perth downtown skyline

3. High Quality of Life

When it comes to the quality of life, Perth tops business freedom, safety, healthcare, and environmental quality. The crime rate is also low in Perth while having more spacious and less crowded areas.

The lifestyle of most people in Perth is more laidback than in most cities, yet the median salary is relatively high. With an efficient transportation system and high regard for living a quality life, people have more time to spend with their loved ones and to take up hobbies and activities that they love outside of work.

downtown district in perth

4. Rich cultural experiences

When living in Perth, you can be exposed to different cultural experiences. Perth CBD is home to many art galleries, museums, and theatres. Enjoy a family day out exploring different museums around the cities while schools also have school holiday programs to teach kids to make their own art.

Many people from around the world live in Perth and it has also become a melting pot of different cultures. Perth’s food scene is composed of different cuisine around the world that can be explored through different restaurants in the city and suburbs.

a beach in perth with people and families

5. Endless outdoor activities

Aside from Perth’s convenient and vibrant city life, it is a great place that has endless outdoor activities for families. As a bonding activity, families can enjoy the fresh air and beautiful view within Perth and the suburbs by going on bike rides together. There are a lot of biking paths which makes it a safe place to enjoy biking with your children. If you are not a fan of biking, you can relax while your kids are playing in the park. You can choose among Kings Park and Botanic Garden, Langley Park, Ozone Reserve, and Queens Gardens.

Also, Perth has Australia’s best beaches. Explore the scenic view or Mettams Pool, the fine sand and crystal clear ocean of Cottesloe Beach, or enjoy the restaurants and bars at Bathers Beach Fremantle. May it be fishing, swimming, or just chilling with a few beers by the beach, you can never get enough of all the activities that the beaches in Perth have to offer.

Planning to move to Perth?

Are you already convinced because of all these awesome reasons to move to Perth? Explore your options by having a consultation with the experts at Buying Perth Real Estate. Feel free to give us a call at 08 6215 0200 or send an email to clive@buyingperthrealestate.com.

Our experienced buyer’s agents will give you recommendations on the Perth property that is best for you. We are here to help you find your perfect home in Perth, Western Australia.

Why You Should Invest In Developing Areas

Have you been thinking about why you should invest in developing areas? When buying a home, one of the most important things that you should consider is the location of the property. In fact, location is key when it comes to investing in real estate. A property’s features and condition can also be changed and improved, but you can’t change its location.

While most people would prefer to live in the city centre, properties in this area are usually limited and more expensive. Consider buying a property in places where there are plans for future development. Upcoming city centres are cheaper, but with developments in place, their prices are sure to increase in a few years. When you invest in developing areas, you are definitely making the right long-term choice.

Here are some reasons why you should invest in developing areas:

a lot of available land and space

Land availability

Unlike developed areas, locations that are still under development have more lands that are still available as a big portion of the area is yet to be developed. With this, you will be able to have more options and have the chance to choose the best lot available.

However, though this would seem to be an advantage for a buyer, you should still do your research about the location. If a big portion of land is still available for quite a while, it can be a sign of low demand. If it stays this way for a longer period of time, it can affect the future value of your home. 

It is best to check with your buyer’s agents as they are more knowledgeable and they have the connections and means to gather necessary information about your target location.

invest in developing areas to grow money

You can invest at a lower price point

Since the demand for property is lower for developing areas, you can buy them at a lower rate compared to those in highly developed areas. There tend to be fewer buyers and more supply since the value of this area has not been recognized yet. Once the area starts to develop, however, the demand will push the prices of the properties up.

a building being constructed

Upcoming infrastructure

Another advantage of investing in developing areas is the upcoming infrastructure. Once the area has developed essential establishments within the community, the value of your property will increase. The nearby infrastructure is crucial to the potential growth of your investment; hence, you should ensure that the area you are planning to invest in has a reliable and financial developer and a progressive local government authority,  who will take care of the infrastructure development. If the development is delayed, it can affect the timeline of your investment growth.

Developing areas are great investments as prices tend to appreciate faster because of surging demand. However, when buying a property you must also consider accessibility, appearance of the property, and amenities of the neighbourhood.

Consult with an experienced buyer’s agent before making any decision. Get well-researched market insights, exclusive listings, and more when you hire a buyer’s agent at Buying Perth Real Estate.

Why Real Estate Is A Great Investment

More and more people are starting to explore different ways to build their wealth. Aside from having multiple income streams, having an investment is a faster way to build wealth. There are various options when it comes to investing, but having a real estate investment still remains one of the best investments that a person could make.

Here are some reasons on why real estate is a great investment:

The real estate market is less volatile.

Unlike investing in high-risk and high-return markets such as stocks and cryptocurrency, the real estate market is less volatile and less vulnerable to sudden price fluctuations. Of course, these markets have their own advantages such as accessibility and liquidity, but if you are looking for a long-term investment that you don’t need to monitor on a regular basis, real estate might be a better option for you.

real estate prices tend to go up

Its value always increases over time.

Although prices tend to fluctuate every now and then, real estate price values always increase over time. By putting time in the market, you will get a higher value for your investment than selling it sooner. 

It has a high tangible asset value.

Unlike investing in the stock market where your money is used to buy shares from a company, you can physically use your real estate investment. You can build on it, renovate it, live in it, or rent it out. By making improvements and maintaining it, you can increase your real estate property’s value. You can even earn more from it by having it rented.

real estate investment

It can increase your cash flow.

Investing in a property is a great way to increase your cash flow. Once you’ve already finished paying off your mortgage and operating expenses, you can gain profit through rental. Rental properties provide a regular, steady, and passive income. This makes it a great way to generate additional income and grow your money. 

Another way to make profit in real estate is by buying it at a low price and selling it at a higher price. Aside from the increasing value of real estate over time, you can gain more profit by building equity.

It can diversify your portfolio.

If you aren’t new with investments, you surely know about the importance of portfolio diversification. Diversifying your portfolio will help you spread out possible risks. Since real estate is a safe tangible asset, it mitigates the risk in your portfolio. Given this, it can lower your portfolio volatility and eventually provide a higher return per unit of risk.

It comes with various tax benefits.

Aside from gaining profits from real estate investments, you get to save more money as property investment provides numerous tax breaks and deductions. To simply put it, you can get tax deductions for the cost of owning, operating, and managing a property. Just ensure to record all expenses including maintenance, utilities, rental repairs, and insurance.

Throughout the course of owning a property, you will benefit from the various expenses as these deductions from your revenue will lower your taxed income.

Start Investing in Real Estate

Investing in real estate is a big decision. It’s definitely something that you need to plan and research before closing any deal. Make sure that you are ready with your deposit and have a stable stream of income. Look for developing neighbourhoods in your area. Lastly, manage your risks and calculate your possible profits.

If you’re not sure if you’re ready to invest in a property, get a free consultation from us and we’ll gladly help you in weighing the decision.