A perfect spring storm is brewing for Perth's real estate market: Geoff Baldwin
Perth should batten down for the perfect storm in our real estate market to correspond with the beginning of spring.
Strong rental returns and demand, record low interest rates, competitive prices, positive and neutrally geared opportunities and increasing stock levels all point to a window of opportunity for prudent investors.
Going back three or four years it was almost impossible to find a property where the rent would cover the mortgage however these positive and neutrally geared opportunities exist in many areas of Perth and also in some regional areas such as Mandurah and Bunbury.
Spring is predicted to be the start of a significant increase in activity that will bring upward pressure onto prices and a significant return to the market by investors so now is the time to act to take advantage of this window as it will not remain open for a long period.
Most people who have owned their own home for a few years will have enough equity to purchase an investment property without having to put in any cash themselves plus, working with an experienced agent they should be able to identify and purchase an investment property that will cover most if not all its own costs.
Geoff Baldwin is managing director at RE/MAX WA.
