Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Perth's median house price breaks record as sales increase close to the city
The mining boom may be past its peak but it has not stopped the Perth housing market setting a new price record.
The Real Estate Institute of Western Australia says a boost in sales close to the city has raised the median house price to around $535,000.
That has bucked the national trend with a widely-watched private survey showing property price gains slowed in November.
David Airey, the president of the Real Estate Institute of WA, says Perth's previous highest median price was $525,000 in the June quarter.
"If you're a home buyer, that is you haven't bought yet, you're probably looking at this and thinking what is going to happen, when will I find enough money to purchase a property," he said.
"But for those that have bought, I guess those people will be very happy that they've invested in the Perth property market."
Mr Airey says the median house price is now higher than it was during the mining boom.
"In fact, the peak during the mining boom was $515,000 so that's well above that."
RP Data says Perth and Sydney are the only two capitals where homes are selling for more than their previous peaks.
Low interest rates attracting buyers
Mr Airey says there has been a solid increase in sales close to the city with low interest rates raising buyers' appetites.
And, first home buyer activity is also strong.
Home prices lose momentum
After months of exceptionally strong gains in several cities, capital city home prices lost some momentum in November, writes Michael Janda.
"The reality is you can get a fixed rate mortgage or a variable rate or a very good mortgage well under 4 per cent at the moment," he said.
"It's enabling people to meet the repayments more easily than they were when rates were a lot higher."
The increase worries social welfare groups with the Salvation Army's Warren Palmer saying low income earners cannot afford to buy.
"I don't think it's helpful for anyone in particular trying to get into the markets when the median price of purchasing a house is up to the levels it is at the moment," he said.
"Whilst there is some possible value for those people that are already in the property market, for those trying to enter, it makes it very hard indeed."
Rental costs drop as vacancies increase
Low income earners are, however, finding rental costs have dropped.
Mr Airey says in January, there were around 2,000 vacant rentals but now there are over 4,000.
"The vacancy rate has really increased and rents have dropped a modest 2 per cent in three months but if we extrapolate that across the year, that's 8 per cent in the year, I think that will continue," he said.
"I think agents are reporting big numbers of vacancies.
"One in four vacancies is a break lease which indicates the tenants either can't afford the rent, have found something cheaper, have bought a property or maybe had a relationship change which has caused the break lease.
"I've got to say I've never seen such a high number of people actually breaking their fixed term leases."
Anglicare Australia says despite the downward movement in rental prices, there is still a crisis in affordable housing in WA.
In a statement, its chief executive Ian Carter says buying or renting a house in Perth is still out of reach for low income earners.
The Salvation Army's Warren Palmer agrees.
"We certainly see that the rental prices are still over-bloated and we would like to see them go down further," he said.
"I guess the sense that for those people that are locked into annual reviews or specific time reviews for their rents, they may not see an immediate impact of this but certainly those entering into the rental market, we're certainly pleased for the outcome."
I am not surprised rents have fallen a little, First home buyers have been buying/building properties at record levels. Why would you not take advantage of the low interest rates to get out of the rental trap, good on them.
Rents need to fall as they had 30% growth over the previous 2 years. Cheaper to buy in a lot of areas or at least it was if you got in prior to the property price rises.
There is still too much of an undersupply, that is why rents are still rising in many areas.
Dream on.
Rents are falling.
Rental supply is up.
Ask REIWA.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Under supply? Have you seen the amount of unoccupied dwellings in Perth?
Yes There is still a glut of rental properties...
Just did a lease renewal on 1 property rent remains the same, tenants happy to renew for 1 yr.
I've been fortunate that I've not had to decrease any rental rates..
Black Panther
3 Dec 2013, 10:04 AM
There is still too much of an undersupply, that is why rents are still rising in many areas.
I'm not getting what you are on about.
I've not been able to increase any rental rates for this yr. More tenants are able to be choosy with the amount of properties as opposed to the good old days of the Perth rental crises.....
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
I've not been able to increase any rental rates for this yr. More tenants are able to be choosy with the amount of properties as opposed to the good old days of the Perth rental crises.....
BP owns an IP, probably two by now, in the suburb/s of Perth that has increasing rents and property prices. His properties only ever have increases in rent and price appreciation in double digits every month without fail.
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