Is it really a buyer’s market? (Q&A)
“It’s a buyer’s market!” you probably keep hearing. Perth’s current property market is a buyer’s market! The time to buy is now!
To dig a little further and find out if it really is a buyer’s market, and what this means for investors, we asked Property Wizards director Liz Sterzel what she thought.
“Yes, the market has been in a bit of a lull and is really just skipping along sideways for the most part, but where it is booming is in the domain of switched-on, cashed up investors who are honing in on the great buying opportunities out there.”
So what types of properties are these savvy investors snapping up?
“They are snapping up well-priced properties, particularly those with add-value potential, and are getting in at prices which are lower than they could get their hands over the last few years, and at a time when there is less competition as there are fewer buyers in the market.”
What type of investors are they?
“Typically, they are professional investors – those who have been in the Perth market for the past five years or so, and have seen the cycles for themselves. They understand where the cycle is at and know that when it turns they will have a lot to gain because when other buyers come back into the market, prices will be driven up once more. Some of them would be using their self-managed super funds to take advantage of this window of opportunity.”
What are the options for new or returning investors?
“Some investors are making their way back into the market while it is still relatively easy to secure low priced finance thanks to increased competition amongst lenders. The lenders are tightening up now so it may get harder if they wait. And for those wanting to get in while prices are still low but don’t quite have the funds available, it’s an ideal time to look at teaming up with other buyers to secure good add value properties in growth areas.”
So it is a good time to buy, whether you’re just starting out or are a seasoned pro?
“Yes. Smart investing in a market like this can really accelerate your property investing plans.”
One of the most frequently asked questions – where should you buy?
“Focusing on coastal, near-city and near-river areas would prove the most lucrative in the present market. These are proven growth areas and many are offering opportunities to buy at lower-than-normal prices, so there are good gains to be made. There are also a number of small pockets dotted around the metropolitan area where zonings are set to change and, for certain investors, these could prove to be very good opportunities.”
Your top tip for selecting a property?
“As always, look for properties in good growth areas that offer the ability to add value – like adding an extra home at the rear, and, if possible, hold on to both properties to boost your portfolio.”
What lies ahead?
“The market is likely to slowly return to normal – and we are already seeing some movement. The key with any investment of course is not timing the market, but time in the market. So, if you get in now, and buy smart, you can look forward to sustained growth over time.”
If you’ve got any other burning questions about Perth’s current property market or how to snag a quality property investment, call us on 08·9381·7450.
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