Thinking of starting an investment property portfolio? Now is the perfect time.
Interest rates have hit their lowest point in 60 years. Low interest rates, stamp duty benefits and a drop in new housing construction are causing investors to turn their head toward the WA property market. Whilst first-home buyers dominated the WA market in the past 18 months, investors and trade-up buyers are now emerging as the new front runners in property sales.
First Home Buyer purchases hit historic lows in December 2013. Diminishing numbers of first time purchases means the tenant pool is growing ever larger – which is good news for investors.
Johnson Property Group (JPG) Managing Director, Andrew Johnson commented "as property prices lift, First Home Buyers are finding it difficult to afford to purchase property and are choosing to rent instead."
An article by The West Australian, published today by Economics Editor, Shane Wright advised "first time buyers are being squeezed out of the market even though unaffordability levels are well short of the highs reached before the Global Financial Crisis."
A recent report released by the Australian Bureau of Statistics shows an 8.7% rise in Perth housing prices in 2013. While this is positive for growth, indicators suggest that Australia is moving to a situation where many families will be renters and potential investors may need to take a long-term approach and look outside the CBD. “With this likely to become a long term trend - now really is a good time for would-be property investors to get moving on developing their investment property portfolio.” Andrew commented.
“Increasingly we are seeing a shift from the larger homes to the smaller, more well-appointed homes on small blocks, with limited gardens and the ability to ‘lock-up and leave’, ideal for the fly-in-fly-out workers and busy couples”. Andrew commented. The interest in Apartment living has also risen with Andrew confirming an overwhelming response in enquiries for Stage 2 INVITA one and two bedroom apartments recently released in Perth’s fast growing southern suburb of Wellard.
With the outlook for investor purchases positive, JPG have also recently appointed additional staff to the Property Management Services team to keep well resourced to manage newly acquired investment properties for their clients.
Find out more about JPG’s Property Management Services here