Western Australia’s Growth Projected to Continue

We firmly believe that investment property in Perth is a good investment, and yet another report was recently released, showing that our belief is well-founded. The Chamber of Commerce and Industry WA recently released their quarterly economic outlook, and there is no end in sight to the growth that has helped WA pull out of the Global Financial Crisis much faster than most of Australia. While the mining boom has been credited with most of the “heavy lifting” for the last few years, WA is about to get a boost from another source: enhanced consumer confidence.

Projected Growth

The numbers are promising, and bode well for the future. The economy is forecast to grow by 6.5% per year for the next two years. Consumer spending has been forecast to go up 5.75% this year, and a further 5% next year. This has been credited to increased confidence on the part of the consumer. The report cited household consumption as the main factor in last year’s growth.

Meanwhile, business investment is expected to increase by 15% this year, and by another 5% the next, due to the fact that a lot of projects are scheduled for completion this year, and not as many have been started for next year.

So, what does this mean to you if you are planning property investment in Perth? According to John Nicolaou, Chief Economist for the CCI, it means that the housing market is about to become a lot more active. Nicolaou cites three factors we have mentioned here a lot lately: consumers have more money, rents are higher, and interest rates are down.

These three factors alone are almost a “perfect storm” for an exploding housing market. When you add in the fact that prices haven’t yet regained their peak levels of a few years ago, the market is heavily slanted in favour of Free Sale Appraisal. In addition, the decision to allow Australians to invest their supers in real estate have helped a lot of people, especially in Perth and surrounding areas, gain entry into the housing market.

Historically, real estate has been the most consistently solid of any of the major investment vehicles. Call 1300 472 427 today, and let us help plan your financial future.

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