First Home Buyers Return to Perth’s Market
First home buyers are returning to the Perth market: which is good for everyone including investors.
On the back of reported property price drops in Perth it looks like first home buyers are starting to look again. Loans to first home buyers are now around 30% of all new loans approved according to REIWA.
It looks like that the increase in investment properties available for sale coupled with the 1 July increase in the sales tax threshold from $250,000 to $500,000 has led to renewed interest by first home buyers.
Suburbs particularity popular with first home buyers are concentrated in cheaper south-east and north-east suburbs. In places such as Armadale, Kelmscott and Camillo you can still buy a 3-bed house for under $300,000; which is attractive when you consider that the average plot of bare land in Perth is $270,000 - you are effectively getting the house for free. Historically too, cheaper houses in well-established suburbs are the first to move in price when the boom cycle returns, so these first-home owners may well be making sound investment choices as well.
With predictions of further house price drops, interest rate drops and rent increases Perth appears to be entering the part of the property cycle which encourages owners back into the market. Investors might want to keep an eye on their lower-priced properties and make sure that they keep on top of maintenance to make sure they can keep and attract good tenants.
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