Is now the time to build in WA?
Positive signs are appearing in the Perth property market, suggesting now may be the time to build in WA.
With the median Perth house price finally on the rise, and First Home Buyer numbers rising in January; it would seem that the Perth property market is finally moving into the ‘recovery’ stage of the property cycle. This comes as positive news to investors and those in the building industry who have just experienced a two year slide in property activity.
A collaboration between the Housing Industry Association (HIA) and the Urban Development Institute of Australia (UDIA) yesterday launched a new website, Build Now in WA, to highlight the key facts which point to the recovery of the Western Australian property market. The information provided not only highlights the benefits to First Home Buyers if they were to build now, but also the opportunities for investors who are entering the market.
“We are heading toward a property market recovery in WA over the next year or so,” UDIA CEO Allison Hailes said. “This means it is a buyers’ market and the best time to buy land, build a home and watch your investment value increase as property prices inevitably begin to rise again.”
For information on how to take advantage of buying in this phase of the property market, see our article ‘5 tips for buying at the bottom of the property cycle.’
5 factors that make this the time to build now
The Build Now in WA website highlights the following factors as key considerations in it’s argument as to why not is the ‘best time to build in WA’
1. Home loan interest rates are now at record lows. The current cash rate still remains at the record low of 1.5%
2. Required home loan deposits are now very low
3. The trend towards new home investing is strengthening
4. Generous incentives are being offered by leading builders and developers
5. WA Government has grants up to $15,000 for eligible first home buyers
The market is moving into ‘recovery’
When you examine the predictable markers in the property cycle, signs point to the Perth property market having hit it’s lowest point and starting it’s slow recovery.
Investors have the opportunity to build wealth now
NAB Residential Property Q3- 2016 survey results show that many young, prospective property owners are choosing to invest in their first home rather than opt for the traditional route of first home ownership. This type of first home purchase has been coined as ‘Rentvesting’, with the concept explained well in the following video.
According to HIA Executive Director John Gelavis, WA has seen a growing trend toward investment in new homes and house and land packages over the last couple of years, as they are now available at extremely affordable prices.With the median rental yield in Perth sitting at 4.33%, according to Ironfish Property Report, there is more opportunity to make money in the Perth rental market than in Melbourne or Sydney.
“This is the opportunity many have been waiting for to break into the property market,” Mr Gelavis said. “Who knows when these types of conditions will return. For some people this might be the best chance they have to make their dream home a reality.”
“The Build Now in WA campaign is really all about educating the WA public about the current market so they can make an informed decision,” Mr Gelavis said.
To find out more about the Build Now in WA campaign visit the website at www.buildnowinwa.com.au