November 13, 2019 by Rebecca Crommelin
This month, Phil Bertram, the owner of Candour Property Group, brings us the latest edition of Phil's Property Corner. Below, Phil discusses the most recent Perth property & economy stats, as well as the steps taken to boost the Perth property market. Phil also takes a look at a recent client case study example of building an investment property. Be sure to keep scrolling to check it out.
Perth’s median price was steady in October, holding at $480,000 with sales activity up slightly by 2%. The median rental price remained at $350 per week whilst leasing activity increased by 16%. REIWA’s monthly market update can be found here.
In a bid to increase construction jobs and stimulate the property industry the WA State Government has passed legislation recently offering a 75% stamp duty discount to people who buy WA off-the-plan apartments. Interestingly they have extended this same discount to purchasers from overseas, also allowing foreign investors a 75% rebate on the foreign property tax. The ABC have quite a detailed article here on how the apartment market in Perth has fared in recent years and the low appetite for apartments with Perth buyers.
A recent opinion piece has been written by the ABC on some signals that the Perth property market might finally be on the cusp of recovery off the back of a tightening rental market. It is widely acknowledged that the rental vacancy rate has been decreasing in Perth as a result of an increase in population growth. This article references recent experiences of relocation agents who are fielding much higher than normal enquiries from families looking to relocate to Perth before the start of the new school year. This enquiry is initially impacting on rental properties in the upper end of the market as oil and gas workers seek rental properties for their families. Whilst confidence is still quite low in the Perth market, recovery in the rental market may bring investors back to the market. You can find this article here.
In good news for Perth population growth prospects, as of 16 November 2019, the Federal Government will reinstate Perth’s status as a regional city by putting it back on the Regional Migration Scheme (RMS). This scheme encourages migrants hoping to achieve permanent residency to choose a ‘regional city’, as by working in Perth for three years they will have their visa application elevated to the top of the list. REIWA has an article explaining more here.
Last month we worked with a client who was subdividing the rear of his block and planning to build so that he could rent it out as an investment property. He had received a few quotes before meeting with us, all priced fairly high and with insufficient or low quality inclusions. We discussed his needs with him and recommended an appropriate level of inclusions to ensure the maximum rent will be achieved without over-capitalising on the build price. Both of the quotes we presented were significantly less than any prices he’d received and he is very happy with the outcome.
If you’re considering building you can rely on our experience to give you an unbiased opinion on what is required. We take your project to the market and come back with multiple, very well priced quotes. The first step is to chat with Phil Bertram. There is no obligation to proceed any further than you’re comfortable with and he doesn’t charge for his time. All strategies are implemented in tandem with your Mortgage Choice Mortgage Broker.
To arrange for him to call you please email him with your name and contact number on phil@candourproperty.com.au and he’ll be in touch.
