Hi,
My partner and i are looking at getting into either a house & land package somewhere N.O.R or purchasing an existing established house to either renovate or demo (depending on costs etc) and just wanted to get everyones gut feel for the Perth market at the moment? The McCrindle research report (link below) conducted during mid 2015 projected Perth to tip 3 million by 2028 and the ABS site (link also below) is projecting WA hit 4 million by 2038? So thats an extra million people in a space of 10 years? (approx) Whats everyones thoughts?
http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/3222.0main+features112012%20(base)%20to%202101
We're thinking its not really going to go down any further and its actual opportune time to purchase something, be it land or house & land. Just thinking long term for investment purposes
Cheers, Mike
Hi Mike... there is still so much uncertainty about WA's economy, jobs, and property market. Things could still get worse from this point, which will more than likely impact property prices, resulting in lower prices. Sure, that could happen and some say like will. But I liked your point about thinking long term.. long term population growth in particular. So with that long term view, getting into the market now or in the near future is probably a sound decision. As I said, sure the market may fall further, but prices are certainly better than they were during the boom times. If only we had a crystal ball to know for sure what the next 2-5 years is going be like...
Mike, All the stats in the links are purely speculation and like Kensington stated "if only we had a crystal ball" to see what will happen with the market in the next 5 years.
What I see on a day-to-day bases from buyers is that even though prices show supreme value the biggest issues we have are;
*over supply of rental properties
*very slow population resulting in the worst market Perth has seen in over 10 years.
The aim should be keeping the property for at least 2 years when property prices look like rebounding and to make the purchase worthwhile. Also consider tax incentives like negative gearing and depreciation to see if it will work well with your circumstance.
I hope that is of help?
Edited on 27-04-2017 01:21
Im the in same boat as you Mike, the way I see it is getting in now is a great time. Even if its not quite the bottom of the cycle has to be close to it but were prepared to hold long term.
Our strategy is going to be renovate as I see this as the surest way to add value short to medium term.
Just my two cents.