Phil's Property Corner
June Market Update
Thank you for your continued support as a referral partner with Candour Property Group. I have included my Monthly Market Update below.
Perth’s Median House Price has reduced in May by 0.3% to $520,500, experiencing a small drop after two months of increases. After factoring in May’s reduction, Perth’s Median House Price has increased by 1% since February. You can see REIWA’s May Real Estate Update here.
Perth's rental market has shown significant improvement again over the last month, with activity increasing by 18% and Listings for Rent reducing by 4%. With the Median Rental stable at $350 per week for the 14th month in a row most are tipping this will begin to rise in the coming months. As mentioned last month, this is a strong sign that population growth is again on the rise. Improvement in the rental market attracts more buyers back into the market and is generally looked at as a precursor to growth in the value of property prices.
REIWA works with Curtin University to publish quarterly ‘Buy-Rent Index’ reports, which measure whether an individual would be better off over the next 10 years buying or renting in today’s market. They have just released their March Quarter report, on this equation it is the most favourable time to buy in Perth since 2013.
The end of the financial year can be quite a stressful one for several reasons. One of the most significant of these reasons is the annual tax return, where you’re forced to confront the amount of tax that the ATO has received from your hard work all year. If you were to break it down for most people, you were working for the ATO every Monday and most of every Tuesday - every week - all year. As confronting as that is, it’s an opportunity in disguise.
Most people view tax paid as an inconvenience, we view it as an opportunity. If you’ve paid more than $15,000 to the ATO over the past 12 months, it is likely that we can utilise some of that tax to get you a positive cash-flow investment property that will help you to repay your home loan faster. Most people don’t realise what options they have, our service works with you one-on-one to show you how it works for your circumstances and what you can do to protect yourself from the inherent risks. It’s far simpler than you think to make this time of the year a positive one, where you can pat yourself on the back for having made your tax dollars work for you rather than just watching them disappear to the Tax Office.
A good example of this is a recent client who I sat down with, they have $100,000 in household income and have paid around $27,000 in tax for years. The result from our conversations is a property investment that pays them over $5,000 in the first year and around $1,200 a year after that. The equity in their home took care of the deposit and risk management component and the positive cash flow this investment generates is likely to reduce the time it takes to repay their home loan by around 5 years.
The first step is finding out whether this will work for you by having a chat with Phil Bertram. The Perth property market is broadly considered to be at the bottom of the property cycle now, presenting an excellent opportunity for people to purchase at historically low prices.
There is no obligation to proceed any further than you’re comfortable with 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.
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You can find all previous Market Updates here.