Whether it’s a mortgage broker or a financial planner, any professional in the Perth investment property market will tell you that it is mandatory that you keep abreast of market developments. Mortgage rates and property prices both play a part in home loan or investment loan repayments on your Perth property.
We always recommend consulting a professional but here is some information we hope you can put to good use.
What RE/MAX Says
As we head into spring, the market is in an upswing. Record low interest rates and the recent elections have increased investor confidence, resulting in a more active investment market. Geoff Baldwin, RE/MAX managing director, feels that an upsurge in sales will result in price increases by the end of the year.
Baldwin also notes that prices typically rise in the spring but that numerous factors should make this spring more active than the last few and recommends that anyone thinking about buying property should buy soon before prices start to move upward. He is also of the opinion that prices are as low as they will get and that anyone who can purchase property now should see “significant gains” in the coming years.
According to RP Data, over the last 5 years, home values have increased by approximately $30,000 per home in the capital cities. In addition, Genworth’s Homebuyer Confidence Index is at 100.1 which is their best number since before the global financial crisis.
29% of homeowners think that interest rates will decrease in the coming year, compared to 12% in March. Also, the number of homeowners reporting the expectation of mortgage stress in the next year decreased by 37%.
What it Means
Both homeowners and property investors expect optimum market conditions for purchasing property and for refinancing in the next few months. Once again, we realise that everyone’s situation is unique and that there is no “one size fits all” solution for financial planning or home loans.
That is why we recommend that anyone interested in taking advantage of current market conditions call our mortgage brokers, financial planners or both in our Perth office.
Our financial planners can assess your current situation while our mortgage brokers have access to the best home loans and investment loans for your Perth property.
Call (08) 9472 9766 today.