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May 12, 2021
2% Deposit Introduced in Budget!
There's been no shortage of discussion about the impact of the COVID-19 pandemic on first home buyers since lockdowns and job losses first hit Australia Will the housing market crash? Is it easier or harder than ever to try and get onto the property ladder? Are we all destined for a lifetime of share houses and debt? The 2021-22 Federal Budget commits to "supporting construction jobs and home ownership" and the budget details multiple grants and schemes aimed at "helping more Australians realise their goal of home ownership", but each of those measures comes with strict eligibility criteria and significant, long-term financial commitments. Treasurer Josh Frydenberg said in his budget speech to Parliament that while initiatives like the government's HomeBuilder scheme had been a success so far, "in this budget, our housing measures go even further". Here's what we know about the new and extended measures. HomeBuilder was introduced primarily to boost the private construction sector, motivating people to build new houses or significantly renovate existing homes, creating work for tradespeople and others in the industry. But the criteria to apply for the $25,000 grants was pretty significant, with a minimum spend of at least $150,000 required to be eligible for the funding boost. Budget papers reveal that more than 120,000 applications have been received for HomeBuilder grants since the scheme was unveiled in June last year, but does not confirm how many of those have actually been approved. CoreLogic head of research Eliza Owen says initiatives like HomeBuilder, the First Home Loan Deposit Scheme and the first home buyer's grant likely contributed to this financial year's high participation of first home buyers in the market. "The federal government has utilised a different approach to boosting the rate of home ownership," she says. "They focus on increasing accessibility of mortgages, rather than risking any downward pressure on residential property prices." The New Home Guarantee scheme helps first home owners build or purchase a new home with a deposit as low as 5 per cent. But that means existing properties are not eligible for the scheme, which limits the opportunities for prospective first home owners living and working in capital cities or built-up areas. The family home guarantee does extend to both new and existing homes, and isn’t limited to first home buyers. This is a specific scheme for single parents with dependent children to lockdown a property with just 2 per cent of a deposit. This was a significant element in the budget’s focus on women, with an estimated 105,000 of the 125,000 single-parent households expected to be eligible for the guarantee led by women. CoreLogic's Eliza Owen says, to put it simply, lower deposits mean more debt and more debt means more interest — but in the right circumstances, could have potential. "Taking on more debt may still be worthwhile if the borrower is otherwise spending tens of thousands of dollars on each year on rent," she says. "Even more beneficial could be the long-term gains in real assets that come from accessing ownership earlier with a lower deposit, which could outweigh the additional interest paid." The First Home Super Saver Scheme allows eligible first home buyers to release voluntary super contributions to put towards a house deposit. The latest changes mean from July 1, those hopeful buyers will be able to access even more than they were previously. Under the existing conditions, super contributions made by employers and spouse contributions can't be released under the scheme. If you would like to know more about the Federal Budget, grants available and how it affects you and your property journey, book a call with our amazing team to discuss further.
Apr 22, 2021
PERTH: Top on the mind of investors!
Perth has emerged as a fan favourite among property investors, with the timing of the market and the forecasted price growth said to be behind the city’s newfound fame. Momentum Wealth’s 2021 Property Sentiment Report has revealed a huge uptick in Perth’s popularity with as many as 48 per cent of surveyed investors selecting Perth as the best location to purchase an investment property. According to the new research paper, based on a comprehensive countrywide investor survey, Perth was seen as the best place to purchase an investment property in the next 12 months, an 11 per cent increase in sentiment from last year’s survey. Investors who favoured Perth stated the timing of the market and forecast price growth as two key factors behind their thought process. Local sentiment towards the Perth market has also increased, with 78 per cent of Perth-based investors selecting their home city as the best location to buy property, up from 56 per cent in the previous survey, Momentum Wealth revealed. Speaking at a recent episode of The Smart Property Investment Show, Damian Collins, the managing director of Momentum Wealth and president of REIWA, explained that Perth’s current market demand is chiefly driven by local owner-occupiers. In fact, according to Momentum Wealth’s estimates, investors sit at some 15 to 20 per cent of total purchases. But, Mr Collins explained, this is soon tipped to change. “So, right now, it’s owner-occupier led, but now we’re coming out of the rental moratorium. In the West, things are going back to normal. Rents are going to spike probably 15 plus per cent. I’d be shocked if we didn’t see a big jump in investors coming into the second half of 2021,” Mr Collins noted. Other elements supporting Perth’s growth in popularity include the uptick in the mining sector and the flow-on effects to the economy, as well as Western Australia’s relative safety from COVID-19. “If mining’s on, the mining wages are very high. In fact, Perth has the highest outside of Canberra and all our tax dollars paying the public servants, Perth has the highest wages in the country and that’s because of the skilled labor in the mining sector,” Mr Collins explained. If you are looking to invest in Perth contact the Mi Casa team today to discuss how we can help you find the best investment.
Mar 25, 2021
PERTH HOUSE PRICES COULD RISE 19 PER CENT THIS YEAR!
Australian housing prices are set to soar 17 per cent this year across the capital cities, a sharp rise that could lock some aspiring first-home buyers out of the market, ANZ economists have warned. Sydney and Perth housing prices are forecast to jump 19 per cent in 2021, followed by Hobart (18 per cent), Melbourne and Brisbane (16 per cent) and Adelaide (13 per cent), the research found. With banks likely to make it easier to get a home loan, the bank regulator could step in later this year and restrict borrowers from taking on too much debt compared to their incomes, which would slow price growth in 2022. The upgraded forecast comes amid a red-hot property market, with buyers offering huge sums at auction or making offers within days of homes being listed. Ultra-low interest rates – and the expectation that rates will stay low for years – have enabled buyers to borrow more money and bid up prices. Pent-up demand after last year’s lockdowns has fueled the boom, with many residents looking for larger accommodation to work from home. The latest forecast is in stark contrast to predictions made by economists this time last year that prices would fall between 10 and 20 per cent. If you are looking to buy or sell a property, now is the time to do so. Give our dedicated team a call to discuss how we can help you in your property journey. #micasa #micasaproperty #perthproperty #perthrealestate #perthhomes #perth #realestate #realestateperth #perthisok #propertyperth #perthlife #perthrealestateagent #perthwa #realestateagent #warealestate #perthcity #perthbusiness #realestatewa #perthhome #reiwa #perthdesign #perthbuilders #forsale #realestatelife #home #wahomes #pertharchitecture #ausproperty #property #house
Feb 17, 2021
PANIC BUYING HITS PERTH PROPERTY MARKET!
Perth’s property market is so scorching hot right now people are panic buying houses as if it was toilet paper — with one industry expert revealing up to 200 people attended a single home open in the northern suburbs. Real Estate Institute of WA president Damian Collins told The West Live today that agents were dealing with a staggering level of demand from people who had a “fear of missing out” as house prices continue to rise. “There certainly are some people who are acting like they’re in the supermarket (panic buying toilet paper), and there’ll never be another property come up again,” Mr Collins said. Even current COVID restrictions around home opens have done little to stop the stampedes heading for desirable properties when they hit the market. “I’ve heard of some in Carine recently where an agent had 200 people wanting to come through,” Mr Collins revealed. “That’s not every single property, but certainly the home opens are pretty buoyant, and I have heard people have had to line up ... and if you see 70 other people (at a home open) it could be disheartening that there probably could be four or five offers on the property.” Buyers should consider themselves lucky to even get a home open, with houses currently being snapped up, sight unseen, based solely on the images provided on real estate websites. Mr Collins said this could be driven by younger, first-time buyers, whose purchasing habits are increasingly moving online. “You’re not buying a $100 dress or pair of shoes you can send back, you’re buying probably a $500,000 asset, so while the websites give you a lot of good information, I would always strongly encourage people to go and view the property,” he said. “Yes, we are in a rising market, but we don’t want to get too carried away, and quite a few people are suffering FOMO at the moment who perhaps might be making decisions they regret in six months time.” If you are in the market for a property or maybe you have been considering selling, please call us today on 08 9339 7079 to discuss how not only how we can help you with your property journey. #micasa #micasaproperty #perthproperty #perthhomes #perth #realestate #realestateperth #perthisok #propertyperth #perthlife #perthrealestateagent #perthwa #realestateagent #warealestate
Feb 11, 2021
Perth house price growth set to beat other Australian cities in 2021!
Perth house prices are on track to rise faster than any other Australian capital city in 2021, thanks to a strong economy, a tight rental market and the state’s response to COVID-19, according to property experts. House price growth between 6 and 10 per cent was likely, Real Estate Institute of WA president Damian Collins said, with 2021 expected to be the city’s best performing market in about seven years. “We have an undersupply of properties on the market and the oversupply of what we had in the last year has been taken up and demand is certainly outstripping supply,” he said. “We are certainly very affordable. Our income is higher than other locations, interest rates are low, and the WA economy is strong, particularly our mining sector, which drives a lot of things.” Economists also expect strong growth, with ANZ tipping a 12 per cent rise in Perth housing prices this year, compared to 8.8 per cent in Sydney, 9.5 per cent in Brisbane and 7.8 per cent in Melbourne. AMP Capital chief economist Shane Oliver recently forecast Sydney and Melbourne to rise about 2 per cent on average in 2021 and more for suburban houses, while Perth and Brisbane could rise to 10 per cent. Perth’s median house price was the cheapest of any capital city at $534,336 in the September quarter, on Domain figures. The median unit price of $335,869 was more expensive than only Adelaide and Darwin. Fairly significant net migration, both international and national, because of COVID-19, was also set to drive price growth. Conditions were ripe for an “extraordinary” year for the market in 2021 and were the result of several factors, Bankwest Curtin Economic Centre director and Professor Alan Duncan said. “We know that the Perth market has been relatively protected from COVID-19 and so that’s generated a degree of confidence that’s perhaps not mirrored in other state jurisdictions,” he said. “We are coming off the back of fairly consistent declines in housing price, there is potentially good value to be had there. “Of course, because of the protection with COVID- 19 there is continued strength being delivered in industry sectors, such as mining and the building bonus the WA government introduced, and that’s been a real stimulus – the volume of house sales is up 45 per cent up on same time last year.” But Professor Duncan said Perth was a tale of two markets. “In terms of the sales, there is real activity going on and there is a sense of, it’s turned a corner with increases in prices given the high demand but on the rental side it’s a very different story with rents being up and the vacancy rate extraordinary low.” Perth house rents rose 13.5 per cent over 2020 and unit rents were up 12.9 per cent, the latest Domain Rent Report shows, the strongest annual growth in the nation. Urban Development Institute of WA chief executive Tanya Steinbeck said Perth’s extremely tight rental market due to a lack of residential supply was likely to have an impact on the market in 2021, driving demand from investors and owner occupiers alike. “While there are many unknowns, we would expect unit prices to increase in Perth given the demand that is likely to be spurred by the low rental vacancy rate,” she said. “We would expect investors to look to this market as an opportunity to boost rental supply.” If you have a property that needs leasing, please call us today to discuss how not only how we can help get your property leased but also save you in management fees with our flat fee offer. #rentalproperty #rentalmarket #perthrentals #micasa #micasaproperty #perthproperty #perthrealestate #perthhomes #perth #realestate #realestateperth #perthisok #propertyperth #perthlife #perthrealestateagent #perthwa #realestateagent #warealestate#commercialrealestate #residentialrealestate
Jan 27, 2021
“A PERFECT STORM” FOR PERTH HOUSING MARKET!
Perth houses are being snatched up before they are even listed as the state experiences a clamour for property not seen in 15 years. REIWA statistics showed during the December quarter the average time it took for a Perth house to sell was nearly halved to 21 days, compared to 38 days the year before. Curtin University housing expert Steven Rowley said the interest had been brought on by a perfect storm of COVID-19 and other market factors. “The market was showing strong signs of recovery pre-COVID and a lot of that demand has been held over until now so there’s a big flood of buyers that would have been coming back into the market after a period of very slow activity,” he said. “There’s also the herd mentality as well. A lot of these people have been sitting off buying and just waiting until the market bottomed out and have seen stories of price growth and so forth.” Australians returning to Perth from overseas and the eastern states are also contributing to the growing pool of people looking to buy up in the west. Professor Rowley said the decision to buy a house on arrival rather than rent could be due to the uncertainty surrounding the pandemic. “That increasing sense of insecurity in the rental market and people reading stories about rents potentially going up and vacancy rates coming down is making them feel like they better get out there and buy,” he said. “I think there’ll be a number of months of this strong activity fueled by people coming back into the state and others not wanting to miss out.” If you are thinking of selling, contact the Mi Casa Property on 08 9339 7079 to discuss how we can help you with your property journey in 2021!
Jan 13, 2021
PERTH PROPERTY MARKET PREDICTIONS FOR 2021
The last 12 months have been a rollercoaster for Perth property, starting off with some long-awaited growth in the established homes market, followed by a short COVID-19 downturn and a recovery. Meanwhile various government stimulus measures have seen the struggling land and new home markets soar. So, what does 2021 hold? If you’re looking to get a loan, there’s some great news for borrowers. Resolve Finance managing director Don Crellin predicts that interest rates are unlikely to go lower during 2021, and even less likely to go up. “The Reserve Bank of Australia has signalled they expect rates to stay at the current level of 0.1 per cent for at least 3 years,” he said. “We would need to see labour markets rebound significantly and for inflation to rise (and be consistent at these levels) to around 2-3 per cent for any rate rises to be considered. “The great news for borrowers is we’re starting to see some home loan rates with a 1 in front of them. “Record low interest rates, coupled with the confidence that they’ll likely stay low for some time, will benefit many West Australians who are in the property market or looking to get in.” PROPERTY PREDICTIONS First home buyers — it’s a great time to settle in to managing their first large home loan commitment. Upgraders — have confidence to take the next step, knowing rates should stay low now for some years to come. Refinancers — there’s never been a better time to look for a better deal. Competition amongst lenders is fierce. Renters — in some suburbs of Perth, it’s now cheaper to buy than it is to rent. This trend should continue into 2021 with vacancy rates decreasing across the city and rental prices rising (and they’re expected to rise again in March once the government’s rental freeze guarantee expires). WILL IT BE HARDER OR EASIER TO GET A LOAN IN 2021? Many lenders experienced significant delays in assessing and processing home loan applications during 2020 due to the upheaval of workplaces and the volume of loans and refinance applications that came through. We expect access to credit and lender turnaround time to improve in the year ahead as we settle into a new normal. The proposed changes around responsible lending (if it passes through parliament) will likely help ease restrictions to credit (and help improve loan processing times) — but this doesn’t mean a loosening of standards, just a better clarification on regulatory expectations. WHAT GOVERNMENT ASSISTANCE WILL BE AVAILABLE TO HOME BUYERS IN 2021? Government assistance increased during 2020 in response to the economic impact of COVID-19. The First Home Loan Deposit scheme was introduced to allow selected home buyers to get into the market with a 5 per cent deposit while avoiding lenders mortgage insurance. An additional 10,000 places were opened up in the scheme for those looking to build or buy a new home in 2021. The Federal Government launched the HomeBuilder grant providing an amount of $25,000 to eligible purchasers. The grant will continue in 2021 albeit at the lower level of $15,000. The First Home Owners Grant and stamp duty concessions remain unchanged. If you are looking to buy, sell, lease or rent in 2021, call the most dedicated team in Perth, Mi Casa Property on 08 9339 7079 to help you with your property journey. #perthproperty #perthrealestate #perthhomes #perth #realestate #realestateperth #perthisok #propertyperth #perthlife #perthrealestateagent #perthwa #realestateagent #warealestate #perthcity #perthbusiness #realestatewa #perthhome #reiwa #perthdesign #perthbuilders #forsale #realestatelife #home #wahomes #pertharchitecture #ausproperty #property #house #realestateaustralia
Jan 6, 2021
Perth Property Sales Soar!
Properties sold like hotcakes in December, with sales 42.5 per cent higher than the same time in 2019. The Real Estate Institute of WA recorded 3067 transactions for the month, which president Damian Collins said was not the norm. “Traditionally December experiences a reduction in the number of house sales due to buyers going away for the festive period, yet we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions while they are unable to travel,” he said. “Agents have reported that good, quality stock is being snapped up fairly quickly and, with listings for sale decreasing 16.5 per cent in December, it is only a matter of time before median prices start to increase.” REIWA is forecasting between six and 10 per cent price growth in 2021 and values are already on the move, with the latest figures from CoreLogic showing 1.1 per cent growth in December and 2.8 per cent over the quarter. After many years of negative or no price movement, Perth also recorded growth over the year, up 1.9 percent to $471,310. According to reiwa.com data 45 per cent of suburbs saw an increase in median price last month. “Kelmscott saw the largest increase in median sale price in December with a 6.2 per cent increase to $375,000, followed by Yokine with a 4.8 per cent increase to $650,000 and Wellard with a 4 per cent increase to $399,500,” Mr Collins said. “Rounding out the top five was Girrawheen, which also experienced a 4 per cent increase to $310,000, and Applecross with a 3.4 increase to $1.5 million.” Activity was also up in the tight rental market, with 3655 properties leased in December, an increase of 9 per cent on November. Mr Collins said leasing figures had been declining in recent months, but it was pleasing to see them pick up at a time when activity traditionally slowed. “While leasing activity increased, we saw listings continue to decline, with a 14.5 per cent decrease when compared to November and 56.6 per cent decrease when compared to December 2019,” he said. Reiwa.com data shows leasing activity increased in 100 suburbs last month, with East Victoria Park, Harrisdale, Cloverdale, Aveley and Port Kennedy the biggest improvers. Other suburbs to perform well were Willetton, Maylands, Clarkson, Bayswater and Applecross. Perth’s overall median rent rose $5 to $395 per week in December — the fourth consecutive monthly increase — and is the highest it has been since February 2016. “In December it was Perth’s higher end of the market that dominated the top suburbs to see an increase in median weekly rent, with Mt Pleasant and Duncraig increasing 4 per cent to $550 and $520 per week,” Mr Collins said. “This was followed by Applecross which increased 3 per cent to $650, Alkimos increasing 2.9 per cent to $340 and Wanneroo, which also increased 2.9 per went to see a $360 per week increase. “As we see rental stock levels continue to remain low, we can expect rents to continue increasing, however we need to remember that rents are still a lot cheaper than they were in 2014.”