If we are reading the situation correctly, you have less than six months left to take advantage of a great market for home loans in Rockingham, Baldivis, Kwinana and the Perth market in general.
Recently, the Gold Coast held the Australian Real Estate Conference. The keynote speaker was John Symond, founder of financial monolith Aussie Home Loans. Symond, who very well knows the market, feels that the Australian housing market will see full recovery soon after the elections are finished.
Though Symond was speaking about all of Australia, most of what he said is very relevant to our local market and WA in general and he cited a lot of factors that we have also cited here over the last few months: property prices are low, interest rates are at an all-time low. Meanwhile, employment is up and income is up. Symond’s conviction aligns with what we have been saying here for awhile: Now is the perfect time to buy a house.
However, the only thing that has held back a national recovery is consumer confidence but Symond sees the coming election as a booster shot for the majority of Australians since they feel that the people they will be putting in office will be able to make decisions that will infuse strength to the economy. The rising hope towards public governance and the future pave the way for the return of the ever sensitive and ever elusive “consumer confidence.”
Symond advised that those considering buying a home should not wait anymore for incentives from the government but pay close attention to market signals. For example, Symond feels that the current interest rate that many banks are offering–as low as 5%–represents a much higher savings than any additional government grant would. When all market factors are taken into consideration, he feels that housing is more affordable than it has been for what he calls “many, many years.”
According to a recent survey from RP Data, it is currently more affordable to purchase the median home selling for less than $500,000 than it is to pay rent. This is up nearly 300, or 60% over the 2011 figure of around 500 suburbs.
Symond’s projection for the overall market is a slow, steady gain, rather than a leap. This would lead to real estate being a great long-term investment as opposed to a short-term landfall.
Our experience is similar to Symond’s but there are some major differences. We saw our prices bottomed out in 2008 but they are now on the rise. According to the March quarterly report from REIWA, Perth had an all-time record median sales price for established homes. While part of this was because of a lot of interest in high-end housing, it indicates that Perth and therefore Rockingham, have seen full recovery in the market.
Luckily, due to the mining boom, we never quite saw the depths of despair that other housing markets in Australia did. We suffered from the ‘global financial crisis’ and sustained a minor trough but we have had the mining industry to prop up our economy almost as if we were a separate country from the rest of Australia.
That has really helped us and it has made our situation slightly different than most of those across Australia. We currently have a thriving economy, thanks largely to our mining industry, along with the support of infrastructure around it.
Consequently, we are on the cusp of employment opportunities and labour shortages. Inevitably, we will soon be “importing” workforce from across Australia and even from other countries.
What does this means to you, to me? Those people are going to need shelter and places to live. Families maybe relocating. Simply put, this means that it is essential to take advantage of the situation and BUY NOW before prices shoot to the high heavens. Interest rates will move along with the rest of Australia but WA prices have risen and will continue to rise higher and higher.
Bottom line: Every month you delay in buying a house could cost you thousands and thousands of dollars. Call us on (08) 9527 1800 for more information.