Is Now the Right Time to Buy Property in Perth?

Right now it appears that the Perth property market is in a state of confusion. Many people are calling it a “bubble ready to burst” and others are saying now is the right time to buy. So who’s right?

The facts of what is happening in Australia and affecting the Perth property market are as per the below:

• The WA mining boom has passed.
  
• Consumer spending is down.
  
• The median house price according to REIWA is currently at $545,000, $5,000 down from March quarter.
  
• Sydney and Melbourne are currently booming and last calendar year (2014), 400 people (net) left WA and travelled east. Net interstate migration has dropped from 10,800 in 2012 to a negative number.
  
• Similarly, net overseas migration to WA fell from a peak of 56,291 in 2012 to just under 19,000 in 2014.
  
• There are currently approximately 14,000 properties listed for sale in Perth compared with just over 10,000 one year ago. 
  
• Commonwealth Bank and ANZ have both raised interest rates for housing investors by 0.27 points in an attempt to comply with APRA’s rule of no more than 10% per year being leant to landlords.
  

Although the above factors give reason for home buyer’s confidence to be low, it is often said that the right time to buy is in times where others are unsure. Remember that you make money when you buy property, not when you sell it so the negotiation process is very important when you buy property in Perth.

It is important to get advice from your team of professionals which should include a mortgage broker, building inspector, settlement agent and buyer’s agent (if applicable to you). If you are yet to perfect your team of professionals, or would like free advice from one of our recommended specialists, please contact the Buying Property Perth team today.