I am a long-term property investor in Perth (over 20 years) and have an intricate understanding of the Perth property market. During that time, I have invested and followed the market in Perth closely and sense we are nearing the bottom of the cycle which may provide investors (both local and interstate investors) with some very good investment opportunities in Perth.
Experts are expecting 6-12 months before the market starts to rise due to an increase in consumer confidence, most likely after the State Elections. Reiwa.com.au‘s latest data to December 2016 shows the Perth median house price as $535,000 which is very competitive as compared to other capital cities across Australia.
There is no denying that Perth has suffered over recent years due to the downturn of the mining industry and unemployment is high; however, on other fronts, Perth and Western Australia is looking much brighter. Tourism is a huge industry providing Jobs and infrastructure. The government’s aim is to triple the state’s annual tourism income to $12 billion within three years and Tourism Western Australia aim is to increase the state’s visibility as a top tourism destination in the Asia Pacific region. Singapore, Malaysia and Indonesia are important markets for Western Australia, adding a collective $484 million to the State’s economy and attracting more than 231,000 visitors in the year ending September 2016. While the Mining and resources sector has shrunk, it is still in operation and at a much more sustainable pace.
Perth is a lovely place to Live with a modern city and infrastructure, good public transport, top class schools and universities world class restaurants and great beaches. Taking into account the positives, I can see Perth being a great market to invest over the coming years as housing affordability is on the upswing. With Interest rates predicted to stay Low and prices Low, it might be the right time to start looking at investing in the Perth property market.
When buying in Perth do your research by property types: House and Land vs Apartment, and focus on where there is a demographic trend towards increasing demand. You need to look for areas where there’s a high demand and a low supply of land within close proximity to the city and water-views.
If you’re a first-home buyer, it’s a great time to buy, especially given the First Home Owners Grant had increased to $15,000. Look for areas close to public transport, shops, hospitals, schools, recreation, transport links and employment areas focus on location, location, location. Properties in a prime location will achieve stronger capital growth over the long term.
“Now is a great time to buy a well-located property in Perth for a competitive price.”
If you are looking to invest in Perth – and especially before you buy – you should seek independent advice for your individual situation. We can assist with advice on “Whose name should I buy this property in?”, “How does negative gearing work” , “How much can I borrow?”. We can also help manage all your day to day tax affairs and arrange finance through our dedicated finance broker.
My team of property accountants assist our clients and property investors with their tax obligations, structuring for improved asset protection and finance requirements in Perth.
Lilian Fisher is the Principal of Chan & Naylor Property & Business Tax Accountants in East Perth.
Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.