The Future of the Perth Property Market

Given the Covid-19 pandemic happening all over the world, many industries worldwide have been suffering economic impacts. While Australia also felt these impacts, the Perth property market seems to be recovering faster than ever.

Western Australia’s well-controlled handling of the pandemic is resulting in more stable growth and faster recovery period compared to Eastern Australia. Perth is also less reliant on affected industries such as tourism and international students. They were less vulnerable to the economic blows that other cities in Australia faced. Western Australia is fortunate to have a huge continuous income from the mining industry.

Here are some forecasts to watch out for on the real estate market industry in Perth:

Perth house prices predicted to rise to 12% in 2021

real estate statistics

It has been reported that east coasters are starting to discover West Australia as they take advantage of government incentives such as the $20,000 Building Bonus grant. Plus the opportunities offering to obtain well priced established real estate.

With a more than the expected demand from applicants taking up the State Government’s $20,000 building grant, the Perth property market is experiencing a higher demand for vacant land. Perth house prices are forecasted by several of the major banks to rise by 12% in the last half of 2021, and by 18% in 2022. This will increase Perth’s median house prices to at least $532,000.

Sales increased by 56% in October 2020

perth property market increased in sales

In October last year, metropolitan Perth reported 603 sales but this October 2020, it significantly increased to 946 sales. This is a 56% jump from the previous year. Sales have rapidly increased due to fewer listings for this year. From 14,000 listings last year, it decreased to 10,000 listings. Since there is less supply entering the market, the competition becomes tighter. Contracts are being closed faster compared to the addition of new listings in the market. Hence, pushing up the value of the properties.

Western Australia Border Open on December 08, 2020

More people will now be returning back to Western Australia and will be looking for somewhere to live, as the borders open to allow Victorians and New South Wales people back into the State without quarantine restrictions. While this will only last while those States remain free from the virus, there are many already taking advantage of the freedom of moving to West Australia.

COVID-19 pushed professionals to prioritize savings and investments 

savings and investments are being used to buy from the perth property market

According to Westpac’s consumer sentiments, WA now leads the measure of “time to buy a dwelling” throughout the whole nation. After two years of slow downturn, home financing levels are finally recovering. With the pandemic and the fear related to financial security, professionals prioritized saving more with an average of almost 20% of wage savings. Before the pandemic, people usually save only 3% and spend the rest of their salary.

Although there is news that the anti-COVID19 vaccine will be available soon, people do not plan to go out and spend their extra savings just yet. It seems that they prefer to spend extra savings on housing-related expenses. The number of real estate transactions now is already above the level during the pre-pandemic period.

The Perth property market is in the early stages of a market boom

While most countries are struggling with the effects of the pandemic, West Australia is recovering fast – including the real estate industry. Given all these forecasts, Perth is once again on the journey of having a real estate boom after over a decade.

Now is the time to invest in selected real estate in the Perth suburbs. With interest rates for borrowing at an all-time low and the real estate market showing strong signs of recovery, what better time to engage an experienced buyer’s agent to stand alongside you through the journey of selection, negotiation, due diligence, building reports, and a host of unknowns to most buyers.

Learn more about the status of real estate and properties in Perth. Get a free consultation from us today.

4 Hassle-Free Ways to Buy a Property

Have you been planning on buying a property in Western Australia but don’t want to go through all the hassle of searching, checking, and finding off-market properties and then doing the negotiating? Do you feel overwhelmed by all the research and assessment that you need to do to ensure that you’re making a wise decision? Are you looking for hassle-free ways to buy a property?

There are a lot of factors to consider when buying a home and to make it simple for you, we’ve listed four hassle-free ways to buy a property:

1. Figure out what you want.

different houses to choose from

The first step to buying a property is simply to figure out what you want. Do you want a house near the beach? Are schools important? Do you want to be close to the city, in an apartment, or a full block? Or maybe you want a hobby farm or just a building block? There are so many options and the only way to not get confused is to make a plan and decide on what you need and what you want to invest in.

2. Set a realistic budget.

budgeting for a house for hassle-free ways to buy a property

This might not be the first on the list but this is the most important part of your buying journey. You need to identify your budget. Although you’ve already set your heart on a certain property, the feasibility of purchasing that property would still depend if you can afford it. Assess your lifestyle. Will you be able to pay for your new house without compromising your other payables? Buying a new property should be an investment or a reward to yourself and should not let your finances suffer.

3. Research.

real estate market trends hassle-free ways to buy a property

Too many people make on-the-spot commitments only to find they should have done more research or even engaged with a third independent party like a Buyer’s Agent to walk with them through the process. 

Conduct initial research first before buying property. Is the location convenient for you? Is the house compatible with your lifestyle? How about the neighborhood, is it safe? If you have children, you might want a three-bedroom, two-bathroom home. You will be investing a large number of your funds. Make sure it’s a wise and well-thought-out plan before making the final decision. Think about your long-term plans and how this property can suit that. Be a smart buyer and plan ahead.

4. Hire an experienced buyer’s agent.

hire a buyer's agent for hassle-free ways to buy a property

The last and easiest way to buy property is to hire a trusted experienced buyer’s agent who knows your area. Buyer’s agents are experts in locating all the best available property — even off-the-market properties and bank closures. They can organize all the inspections and negotiations, analyze the special conditions of the contract to protect you, right through to the unconditional contract. They know how to ensure that you buy at the very best price. 

Buyer’s agents can help you choose the right area, making sure it’s a good location to invest in, and maybe offer better alternatives within your planned buying budget. Investing in an experienced buyer’s agent is definitely something you should consider to ensure that your buying journey is stress-free and a smooth process. 

Relax and let the experts do the work

Buying property is an exciting endeavor, however, it can be stressful if you don’t have enough experience with the process. You could be wasting a lot of precious time and energy that could be spent doing more important things like working or spending time with your family.

Do yourself a favor and let the experts do all the heavy lifting. It will save you time, energy, money, and stress from it all. For hassle-free ways to buy a property, contact the real estate professionals at Buying Perth Real Estate and get a free consultation.

Why You Should Buy A Retirement Home Sooner than Later

What do you plan to do after you retire? Is moving to another community and getting a new home part of your retirement plans? If yes, when do you plan to do it? 

You don’t need to wait until after you retire before you buy a retirement home. Below are some of the benefits of buying a retirement home sooner:

1. It’s an investment opportunity.

If you’re still in the workforce and do not plan on retiring anytime soon, you might think that you don’t need to worry about your retirement home yet. But purchasing early has numerous advantages. If prices of Perth real estate property start to rise to around 5-7% each year. With property prices at today’s current level, this is the time to make your move. 

Although you might not be able to move in yet, by buying now you can use it as an investment. You can use it as a vacation home. You can even rent it out; therefore, generating additional income for you.

2. It is easier to get approved for a mortgage while you are still fully employed.

Employment status is one of the factors that lenders consider for those who apply for a mortgage. They prefer to work with borrowers who have a steady salary as they feel more secure with them. Having a stable income means the borrower is capable of paying the mortgage on time.
When you apply for a mortgage after you retire, they will also look at your debt levels and assess your credit score — which leads us to our next point.

Employment status is one of the factors that lenders consider for those who apply for a mortgage. They prefer to work with borrowers who have a steady salary as they feel more secure with them. Having a stable income means the borrower is capable of paying the mortgage on time.
When you apply for a mortgage after you retire, they will also look at your debt levels and assess your credit score — which leads us to our next point.

3. You can work on your credit score.

When you plan early, you will have more time to pay off your debts. As a result, you can maintain a good credit score. Having a high credit score will help you get a good deal when applying for a loan for your new home. You will be more eligible for a lower interest rate.

Start early with being conscious about your credit score. Be mindful of your financial behaviors — pay your bills on time, avoid spending beyond your means, and clear your debts. Then, make sure to maintain your credit score even after you retire. When you retire, your income will decrease. With this, make sure to adjust your expenses and lifestyle.

4. It will give you more time to save up.

The sacrifices you will do for saving up early will benefit you in the long run. You will have more money to afford a bigger deposit; hence, lessening your monthly mortgage payments. You can also use your savings for future renovations or upgrades for your new home or even to make your home interior design dreams come true.

Buying a new home is a big move that requires a lot of planning and saving up, especially if it’s for your retirement. You need to give yourself enough time to plan as this will be where you will be settling down when you grow old. It is the place where you will spend your later years in life. You will spend all your time there so it is best to think about it carefully and decide on the lifestyle you want to have for the rest of your life.

Do you already have an idea of your dream retirement home but don’t know where to start? Planning to buy a retirement home? Let us help you turn those dreams into reality. Reach out to the buyer’s agents at Buying Perth Real Estate by sending an email to clive@buyingperthrealestate.com or check out our website.

Report from Buyer’s Agent, Buying Perth Real Estate, March 2020

“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.

For a free consultation, contact me on 0412 926 190, or visit our website at buyingperthrealestate.com.

Clive Elliott, CEO, Buying Perth Real Estate Clive@buyingperthrealestate.com 

In 2020, fear is the new black.

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.