Welcome back to the fourth installment of Phil's Property Corner, brought to you by Phil Bertram - the owner of Candour Property Group.
As expected Spring has brought a strong increase of activity in the property market. Sales are up 9% along with the number of listings as dormant sellers begin to enter the market again. This was coupled with an increase to the median house price of 1% in the 3 months to October. REIWA has released a summary of this in their October Market Update.
These consistent results are being noticed by several well-known experts, especially as the Sydney and Melbourne markets begin to show signs of slowing down. In late October Kerry Stokes appeared as a guest speaker at the Leadership Matters event in Perth and was very direct with his views on the WA economy and future of the Perth property market. The West Australian wrote a piece covering the day and you can see it and videos of his comments here. His comments were directed towards first home buyers or younger people entering into the market, however his view is just as applicable for anyone looking to use the property market as an investment.
Perth has seen many ups and downs in its history and typically the recovery from the bottom of the market is a rapid one. I like to describe the Perth market as a ‘feast or famine’ market. Generally, the perception is very positive across the board or very negative across the board, so when the perception changes then the market reacts very quickly.
The best property purchase opportunities exist before the market starts pricing this new market perception into the prices. When the public gets ‘on the positive market bandwagon’ then the sellers tend to push the envelope with higher prices early to gain as much of that profit as they can. This rewards early decision makers as this price surge creates equity in the investment quite quickly.
If you know where to look then these opportunities exist right now in the Perth market. A popular location that Candour Property Group recommends to our clients is currently able to be purchased for $440,000, the Median House Price in that suburb is currently $500,000. Only 18 months ago the Median House Price in this area was up around $560,000. By taking advantage of these sort of opportunities you can ensure when the market recovers you can be on the right side of history and use those gains to make a significant improvement to your financial position.
As you would have seen in previous articles, for most investors these properties generate more income than expenses, meaning that they are a positive cash flow. In our meeting, we show you exactly what the cash flow position would be for you and we help you structure this so that the property investment can help you reduce your home loan quicker.
The first step is to have a chat with Phil Bertram who can book in an appointment for you to find out how this works for your financial position. There is no obligation to proceed any further and he doesn’t charge for his time. All strategies are implemented in tandem with your Mortgage Choice mortgage broker.
To arrange for Phil from Candour Property Group to call you, please email him with your name and contact number on firstname.lastname@example.org and he’ll be in touch shortly.