Experts Agree: Perth Housing Market Poised for Growth
Announcement posted by Smartline Rockingham 29 May 2015
Mortgage brokers in Rockingham reveal why the Perth real estate market may be due for another growth cycle.
Rockingham, WA, 29 May 2015 - In the wake of yet another RBA rate cut, experts in the real estate and home loan industries believe that Perth is poised for capital growth. RBA rate cuts and the First Home Owner Grant (FHOG) are designed to stimulate the housing market by making it easier for consumers to buy homes. Many observers, especially in Perth, believe that the latest rate cut will provide the impetus for buying at a rate which drives market growth.
The general consensus seems to be that the latest rate cut will be enough to incite many would-be buyers who have been “waiting out the market” to take action. David Airey, President of the Real Estate Institute of Western Australia (REIWA), feels the latest rate cut will provide what he calls “much needed stimulus.”
Mr Airey also notes that temporarily low rental yields are keeping many investors from buying more properties, but that lower interest rates will make it easier for them to come up with deposit money and enable them to positively gear their properties, even with lowered rents. Ultimately, Mr Airey sees the most recent cut as “good management” of the economy by the RBA.
Gavin Hegney, who is the manager of the Hegney Property Group, also feels that the rate cut will enable growth in the Perth market, calling it the “right decision.” Mr Hegney is of the opinion that first home buyers, people “trading up” and investors will all benefit from lower interest rates.
Mr Hegney is especially optimistic for investors with multiple properties because he feels the rate cut will help mitigate the effect of lowered rents and provide them with more operating capital.
Warwick Hemsley, Chairman of QWest, a property valuation firm, called the latest decision a “bold move” and feels that it will benefit Perth and Regional WA.
Justin Smith is the Principal Mortgage Broker for Smartline Rockingham. He has more than 27 years of business in the home loan industry, most of it in the Perth and Rockingham markets. Mr Smith has been through a lot of market fluctuations in the local Rockingham market and the larger Perth market. According to Mr Smith:
“Most signs point towards another growth cycle for the Perth housing market. The median price for the March 2015 quarter was the same as it was in the December 2013 quarter. While the market did have two minor fluctuations in that period, home prices essentially haven’t moved for 15 months.”
Mr Smith concluded: “While prices tend to fluctuate from year to year and month to month, people tend to forget that the trend is always upward in the long term. Today, the market is in a position of having record low interest rates and prices that haven’t risen in 15 months. History says it won’t be that way much longer.”
Smartline Rockingham are mortgage brokers who serve the Rockingham, Kwinana and Baldivis areas. They have been serving the Perth market since 1999. They currently have access to 28 different lenders and more than 300 credit products. To learn more or to arrange a consult, call 1300 958 730 today or visit their website: http://www.mortgagebrokersrockingham.com.au/.
The general consensus seems to be that the latest rate cut will be enough to incite many would-be buyers who have been “waiting out the market” to take action. David Airey, President of the Real Estate Institute of Western Australia (REIWA), feels the latest rate cut will provide what he calls “much needed stimulus.”
Mr Airey also notes that temporarily low rental yields are keeping many investors from buying more properties, but that lower interest rates will make it easier for them to come up with deposit money and enable them to positively gear their properties, even with lowered rents. Ultimately, Mr Airey sees the most recent cut as “good management” of the economy by the RBA.
Gavin Hegney, who is the manager of the Hegney Property Group, also feels that the rate cut will enable growth in the Perth market, calling it the “right decision.” Mr Hegney is of the opinion that first home buyers, people “trading up” and investors will all benefit from lower interest rates.
Mr Hegney is especially optimistic for investors with multiple properties because he feels the rate cut will help mitigate the effect of lowered rents and provide them with more operating capital.
Warwick Hemsley, Chairman of QWest, a property valuation firm, called the latest decision a “bold move” and feels that it will benefit Perth and Regional WA.
Justin Smith is the Principal Mortgage Broker for Smartline Rockingham. He has more than 27 years of business in the home loan industry, most of it in the Perth and Rockingham markets. Mr Smith has been through a lot of market fluctuations in the local Rockingham market and the larger Perth market. According to Mr Smith:
“Most signs point towards another growth cycle for the Perth housing market. The median price for the March 2015 quarter was the same as it was in the December 2013 quarter. While the market did have two minor fluctuations in that period, home prices essentially haven’t moved for 15 months.”
Mr Smith concluded: “While prices tend to fluctuate from year to year and month to month, people tend to forget that the trend is always upward in the long term. Today, the market is in a position of having record low interest rates and prices that haven’t risen in 15 months. History says it won’t be that way much longer.”
Smartline Rockingham are mortgage brokers who serve the Rockingham, Kwinana and Baldivis areas. They have been serving the Perth market since 1999. They currently have access to 28 different lenders and more than 300 credit products. To learn more or to arrange a consult, call 1300 958 730 today or visit their website: http://www.mortgagebrokersrockingham.com.au/.
Media Contacts
Justin Smith
Columnist, Herald Sun; Contributor, Sky News Australia; Sky News TV - Chris Kenny Tonight; Channel Seven Sunrise
