Amongst the doom and gloom of the Australian property market, particularly in WA, those in the know are finding golden opportunities. As much as the market has seemingly bottomed out, first home buyers, current home owners, and prospective property investors all have the chance to turn a negative market into a positive financial decision. Let’s check out why each of those broad groups can benefit from the current housing and economic climate…
Buying your first home
As we covered in a recent article, we took a look at why first home buyers find themselves in a market which can really benefit them if they play their cards right. The combination of low house prices, attractive terms from lenders, and the Australian government’s First Home Owner Grant (FHOG) of $10,000 (and stamp duty concessions) all add up to excellent value for those looking to get into their first home – the likes of which we’re unlikely to see for some time. If the standard cycle of property cycles is anything to go by, the WA market, particularly in Perth, will likely experience some sort of improvement in the near future, so getting in on the ground floor now could pay off handsomely in the future.
Refinancing your home loan
The lowering of the cash rate by the Reserve Bank to 0.75% has further increased the presence of attractive home loan deals in the market. Not only is this beneficial for those looking to purchase a property, it also affords current home owners the opportunity to refinance their home at a lower rate. Doing so can help you pay off your home sooner, reduce your repayments, or unlock some equity in your current home to perhaps purchase an investment property (more on that in a second!). Shopping around is easier than ever, particularly if you have a broker on your team doing the legwork for you – and advise on the best loan structure for you – while competition in the industry means you’ll be able to get the best deal for your circumstances without the hassle.
Starting your investment journey
Pondering the potential upsides to investing in property is unfortunately as far as a lot of people get towards actually doing something about it. But in WA’s current market – what better time? Low housing prices, some great lending rates, strong demand for rentals, and excellent application rates to vacant rentals means being a landlord right now looks like a pretty sweet gig. There are many different ways to evaluate a potential property investment, but things like scarcity, price growth, rental yields and the potential to add value are all important considerations when shopping around.
There’s plenty more to be learned about property investment, and at McKinley Plowman we’re always looking to educate people and equip them with the knowledge to make good financial decisions.