Despite Perth’s residential property and rental markets recording their strongest performances in years, one segment that has so far been less active in Perth’s market’s recovery has been investors. However, data is signaling that this is starting to change, and investors are beginning to return to the market. Recent data from the Australian Bureau of Statistics reveals that investor lending has increased 164% from April 2020 to April 2021, up from $171 million to $453 million. While this level of investment is still below what we would expect for a rental market with below one per cent vacanc ..read more

Each year, Momentum Wealth conducts a property sentiment survey that seeks to understand the goals, motivations and risk factors impacting property investors across Australia. Results from our 2021 survey have revealed a growing interest in pooled investments and property funds amongst investors, with 68% of those surveyed saying they would or already had pooled money with other investors under a professionally managed fund in order to access larger investment opportunities. Commercial property and large residential developments are two advanced investment strategies that are commonly accessed ..read more

Perth Sales Market Median price hits new high The Perth residential market continues to strengthen and the median price for the metropolitan area has broken through the $500,000 barrier for the first time since December 2018. Data from CoreLogic shoes the market has grown 8.5% this year and we expect these gains to continue.   Investor activity heightened UDIA’s latest Urban Intelligence Report for WA highlighted a growing level of investor activity within the WA market. ABS lending indicators data reveals a 31.6% monthly increase and an 86.5% annual increase in the number of new investor ..read more

Perth’s climbing rents have been a hot topic in recent months. Since the end of the emergency rental moratorium in late March, REIWA has reported that Perth’s median rental price has increased to $420 a month at the end of May. As a landlord, adjusting your rents can be a balancing act between meeting market conditions and retaining good tenants who value and care for your property. If you currently have a long-term tenant in your property, the benefits of keeping them can often outweigh any increased rental income that you may get from looking for a new tenant and raising the rent. Here are t ..read more

For many investors, the first place they start looking for an investment property is their own backyard. On the surface, this strategy seems to make sense – investors are familiar with their local area and understand the demand drivers, they have real-world knowledge of the surrounding amenity, and they may feel comfortable being able to check on the property at a moment’s notice. All of these factors combine to give investors a feeling of comfort, confidence and security. However, this comfort could be at the cost of opportunity. Here are three reasons why buying in your own backyard may not ..read more

Treasurer Josh Frydenberg has revealed the latest federal budget, and it is mostly good news for property investors. We’ve teamed up with Katie Timms, a Director in RSM Australia’s Business Advisory division to analyse the latest federal budget and how it may impact you. Here’s what you need to know. Superannuation Downsizer Scheme As some people predicted before Tuesday night, the age limit for those eligible to make downsizer contributions to their superannuation has decreased from 65 to 60. The Superannuation Downsizer Scheme allows for a one-off, post-tax contribution of up to $300,000 per ..read more

Perth Sales Market Market recovery continues The Perth residential market continues its recovery, with housing values continuing to demonstrate a solid upwards trajectory. This recovery is highlighted by Perth’s median house price hitting $508,000 last month, the first time it has been this high since December 2018.   Units outselling houses After several years of sluggish activity in the unit market, sales have rebounded in 2021, with 58 per cent more unit sales in the three months to March 2021 than the same period in 2020. Growth of house sales has also increased 35 per cent during the ..read more

Perth’s booming property market has been all through the media in recent months, with CoreLogic reporting nine months of consecutive price growth. In last month’s article we looked at Perth’s top 10 growth suburbs from 2020 and highlighted reasons as to why these suburbs – despite showing strong short-term growth – might not all be considered investment-grade. This month, we explore a few property fundamentals and factors that help drive price growth, which investors can apply when identifying emerging hotspots that are well-positioned to benefit from strong growth into the future.   Dive ..read more

Often considered the sexier side of property investment, developing property is becoming increasingly popular, especially amongst experienced investors. Property development can complement a longer-term capital growth play of buying and holding property, offering manufactured capital, equity, and the potential for strong returns across a much shorter time period. So, for those investors who are wanting to advance their portfolio and are looking towards development as an avenue to achieve this, what are their options? Land subdivision and small-scale development When most property investors fir ..read more

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