If it seems like real estate agents in Perth have been busier than usual lately, it’s because they have. Due to rising rents, combined with temporarily stable house prices, it has now become less expensive to pay off a home loan than it is to rent a home in much of the Perth real estate market.
RP Data recently released their Buy vs Rent report, which revealed that there are currently 48 different locations in the Western Australia market where the average rent is higher than the average mortgage payment. Currently, the Perth real estate market contains eight of the 48 locations.
Friendly Buying Conditions
Perth and Western Australia have benefited greatly from the mining boom. Both the local and state economies are robust, and show no signs of weakness. The end result is that more people have the resources to make the transition from renters to homeowners, or to purchase investment properties in the Perth area.
In addition, housing prices, which are usually the last economic indicator to recover, have remained stable. This has produced an environment where houses are currently selling for far less than what their market values will be when the prices have returned to their peak values.
The Statistics Look Great for Property Investors in Perth
Perth currently has the lowest vacancy rate in Australia: 0.8%. In addition, according to the 2012-2015 LMI Housing Outlook, housing prices in Perth are expected to increase by 22% between now and the end of 2015. Western Australia produced a 17% rise in housing loans from September 2011 to September 2012. This is attributed to low unemployment and Australia’s highest retail turnover.
Many Property Investors are Taking Advantage of the Current Market
Western Australia in general and Perth in particular are experiencing a confluence of market factors that make right now a time of unprecedented opportunity for those who want to invest in real estate. Prices are still low, but wages are high and employment is high. In addition, population growth fuelled by the mining boom is causing a shortage in supply and a spike in demand for housing.
Call 08 9472 1606 or 1300 472 427 for more information.