The Property Market
Big news this morning from the Reserve Bank of Australia advising that the cash rate will be reduced to 1.75 per cent. What does this mean to the Perth property market? How does it affect the current market? Is there relief for land lords?
These are all good questions which we are sure our clients would be asking themselves, especially if you depend on a healthy return of investment from your asset for your retirement.
Overall, the key to your rental investment property is tenant retention and understanding the current market.
The sales market however appears to be performing consistently in some areas of Perth, such as Willetton, Nollamara, Piara Waters and others.
The key to a good return on your property if you are selling, is presentation, price and areas.
What will happen in the future?
This is a million dollar question which we wish we had a crystal ball that would tell us what can be expected.
Therefore we need to rely on facts and data in order to project how the market may or may not respond in the next few years.
With population growth slowing down and immigration to WA decreasing, makes our state very vulnerable to the property market. Particularly with more developments coming up, impedes on both the rental and sales market adversely.
However, for those who understand the property market and are strategic about the current performance, encourages you to be proactive instead of reactive. Most investors wait for something to happen before they do something, this is a reactive reaction, which means that it may be too late at that stage.
This may be the best opportunity for you to increase your portfolio. Move into other property sectors such as the commercial or retail property market. Of course we would recommend that you pay a visit to your financial planner and get your tax accountant’s advice prior to making any decisions.