Phil's Property Corner
May Market Update
Thank you for your continued support as a referral partner with Candour Property Group. I have included my Monthly Market Update below.
Following on from Perth’s Median House Price improvement in March, April has seen an increase of 0.8%, marking month to month increases for the first time in years. You can see REIWA’s April Real Estate Update here, surprisingly the increase to the Median Price occurred in Perth Metro and regionally despite a lower number of sales transactions.
We are also continuing to observe the rental market improve, with the Median Rental Price unchanged for the twelfth straight month whilst we’ve seen a significant reduction in the Rental Vacancy Rate. REIWA released an article on their observations which you can find here. As has been observed over a long period of time around Australia, improvement in a rental market tends to attract more investors to that property market. Perth is well placed with rental yields already strong for the current value of property. This improvement of the rental market is being keenly watched by east-coast investors.
In some more positive news for Perth, in this year’s budget the Federal Government has pledged $3.2 billion for WA infrastructure, which included a top-up payment to bring the GST distribution up to 50 cents in the dollar. This is expected to give the green light to projects such as the Morley to Ellenbrook rail line, a Mitchell Freeway extension, the Tonkin Highway and the Bunbury Outer Ring Road. You can read about the allocation of funding in more detail here. Projects of this nature have two principle benefits when it comes to their localised property markets – additional jobs and improved accessibility to the area. These improvements often lead to increased property prices around the project, it pays off to understand how you can benefit from these.
This latest announcement now means that there are a number of suburbs in Perth that have over $2 billion dollars’ worth of projects that are underway or about to be commenced. The old adage in property investment has always been to ‘buy at the low and sell at the high’. With the market generally at the bottom and infrastructure projects reaching completion within the next 3-4 years there are some suburbs with significant potential for growth. We take proposed infrastructure and a number of other factors into account when recommending a location for investment.
When assisting someone my first step is always to meet, understand their financial goals and thoroughly explain the fundamentals of property investment – Property, Finance and Tax. I find that even people with several investment properties have a very limited understanding of how these three factors work together to make or break their investment. This first meeting goes for around 90 minutes, sometimes a fair bit longer if they are wanting more detail, and the goal of this meeting is to impart to my client a very solid understanding of how these factors work in their financial circumstances. I made the decision some time ago to not charge for my time, I give this information away freely because I’m passionate about spreading accurate and solid knowledge in this industry and I don’t want money to be a barrier to this process. I have found that after meeting with me a large majority of these people are interested in working with me further, either straight away or at some time in the future.
If you would like to know more 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 you. There is no obligation to proceed any further and he doesn’t charge for his time.
To arrange for him to call you please email him with your name and contact number on email@example.com and he’ll be in touch. Or contact him directly on 0477 228 803.