High Rents Turning Perth Renters into First Home Buyers
Announcement posted by Origin Projects - Land & New Homes in WA 04 Feb 2013
Perth land developer, 4Land Property Group, reveals why renters are “firing their landlords” and buying house and land packages at a record rate.
The average rent in Perth reached $450 a week by the end of 2012, which represented a rise of 14% over the course of the year. By accepted industry standards, a couple would have to have a household income of at least $78,000 a year or $1500 a week to comfortably live in a rented house. Since the vacancy rate is currently a very low 1.8%, rents aren’t forecast to drop or even stabilise any time soon.
According to Stewart Darby, the chairman of the Housing Industry Forecasting Group (HIFG), “High rents are tipping the scale in favour of buying homes.” Industry statistics show that more than one-third of mortgages in recent months were taken out by first home buyers, as opposed to the standard average of 27%.
The HIFG, which is made up of members from both the government and the housing industry, predicts that WA will see 21,000 new homes in the current financial year, for a rise of 20%. Besides the sharp rise in rents, the HIFG credits a growing first home market and strong population growth as the main factors leading to the rise.
According to Darby’s calculations, over 1,000 people, some from other states and some from other countries, are moving to WA every week. Darby also cites the probability of pent-up demand due to a 30% decrease in properties for sale last year, and a construction slump over 2011 and 2012. Darby is convinced that a new home recovery is beginning now.
Established housing has also seen a rise in sales, with a 40% rise in the ratio of properties sold to properties listed. The Real Estate Institute of WA has projected that prices will either remain constant or grow with inflation.
Dave Gillon, Sales Manager for the 4Land Property Group, says the recent report is consistent with what he has seen recently: “Last year was a very good year for us, and this year already looks like it will be even better. We specialise in first home buyers, and we have seen a lot more renters interested in buying their first homes. High rents are one of the primary reasons that prospective buyers come to us, wanting to buy.”
Gillon continued, “It’s not just the high rents, though, but a number of factors, that are making it easier to buy a home than it has been for a long time. The side of the economy that produces money for people to spend is getting healthier every day, but housing prices still aren’t quite where they were a few years ago. When you add in the lower interest rates, we’re really seeing a perfect situation for a couple that wants to stop paying off their landlord’s house and start paying off their own.”
Gillon has extensive experience with first home buyers: “We have house and land packages for first home buyers down to a science, and we make it as easy as possible for renters to become buyers. We sell new house and land packages in Perth and the surrounding areas that are less expensive than the median home in the market.”
Gillon concluded, “I don’t know if there will ever be a better time to fire your landlord.”
4Land Property Group develops housing communities and offers house and land packages in Perth and surrounding areas. Their display homes are located in Perth.
For more information, check out their website: http://www.4land.com.au/
or call (08) 9301 4445.
According to Stewart Darby, the chairman of the Housing Industry Forecasting Group (HIFG), “High rents are tipping the scale in favour of buying homes.” Industry statistics show that more than one-third of mortgages in recent months were taken out by first home buyers, as opposed to the standard average of 27%.
The HIFG, which is made up of members from both the government and the housing industry, predicts that WA will see 21,000 new homes in the current financial year, for a rise of 20%. Besides the sharp rise in rents, the HIFG credits a growing first home market and strong population growth as the main factors leading to the rise.
According to Darby’s calculations, over 1,000 people, some from other states and some from other countries, are moving to WA every week. Darby also cites the probability of pent-up demand due to a 30% decrease in properties for sale last year, and a construction slump over 2011 and 2012. Darby is convinced that a new home recovery is beginning now.
Established housing has also seen a rise in sales, with a 40% rise in the ratio of properties sold to properties listed. The Real Estate Institute of WA has projected that prices will either remain constant or grow with inflation.
Dave Gillon, Sales Manager for the 4Land Property Group, says the recent report is consistent with what he has seen recently: “Last year was a very good year for us, and this year already looks like it will be even better. We specialise in first home buyers, and we have seen a lot more renters interested in buying their first homes. High rents are one of the primary reasons that prospective buyers come to us, wanting to buy.”
Gillon continued, “It’s not just the high rents, though, but a number of factors, that are making it easier to buy a home than it has been for a long time. The side of the economy that produces money for people to spend is getting healthier every day, but housing prices still aren’t quite where they were a few years ago. When you add in the lower interest rates, we’re really seeing a perfect situation for a couple that wants to stop paying off their landlord’s house and start paying off their own.”
Gillon has extensive experience with first home buyers: “We have house and land packages for first home buyers down to a science, and we make it as easy as possible for renters to become buyers. We sell new house and land packages in Perth and the surrounding areas that are less expensive than the median home in the market.”
Gillon concluded, “I don’t know if there will ever be a better time to fire your landlord.”
4Land Property Group develops housing communities and offers house and land packages in Perth and surrounding areas. Their display homes are located in Perth.
For more information, check out their website: http://www.4land.com.au/
or call (08) 9301 4445.