Happy New Year!
2017 is shaping up to be an interesting time for the property market. Interest rates remained low throughout 2016 and we are expecting rates to stay low in the early stages of this year. However, there is speculation that change is in the air and that interest rates may be due for a rise in the coming months. Have you thought about how a rate rise could affect your budget? Fixed rates are a hot topic at the moment so be sure to talk to me about all the ins and outs of a fixed rate home loan so you know everything you need to before signing up to one.
The Western Australian economy is still growing, but at a far slower rate than we’ve seen in recent years. As a result, house prices and rental rates have fallen and that’s unlikely to change quickly given the economic downturn. However, in any market, even low growth markets, there are always opportunities and Perth is no exception. With the market nearing the bottom in Perth, buyers should see some great opportunities to invest in 2017. Whilst overall prices are down, some suburbs saw substantial price increases in excess of 14% in 2016 as buyers saw an opportunity to upgrade in an otherwise slow market.
One way of identifying investment hotspots is to follow where highly successful property development companies are investing or planning to invest. These companies historically have the resources to undertake detailed research to determine future areas of strong housing demand. For example, FINBAR is now investing very heavily in the South Perth foreshore area. They have just gained approval for a $380 million apartment tower, just one of several developments in the area around Mends Street.
A similar trend is happening in the Scarborough foreshore area, with leading developers taking advantage of more than $50 million in new government investment to upgrade the area as well as taking advantage of more relaxed higher-density zoning.
If you are thinking of investing in property in 2017, or if you want to review your home loan, speak to me today to see if we can save you money on your loan and I can help take the stress out of your home loan.
I look forward to seeing what the year holds for all of us and we wish you all the best for a successful 2017.