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Buyers should act sooner rather than later

Western Australia is still the most affordable State in the country to buy or rent a property.

REIWA President Damian Collins said consistent strong demand meant it was now a favourable time for both homebuyers and investors to get into the market before prices started to pick up.

“This is an exciting time for potential home buyers and investors. Not only is WA currently the most affordable state in the country, but this combined with all of the various government bonus schemes and the current low interest rate environment, means it’s even easier to enter the property market,” Mr Collins said. 

The latest Real Estate Institute of Australia Housing Affordability Report revealed that WA was most affordable for buying and renting, improving 0.7 per cent compared to the June 2019 quarter. 

The report found that the proportion of income required to meet loan repayments in WA improved to 24 per cent in the June 2020 quarter, a decrease of one per cent compared to the previous quarter and the average loan size reduced 2.1 per cent to $397,739.

“By comparison, in New South Wales, the proportion of income required to meet loan repayments is 42.3 per cent, while the average loan amount is $605,050 – significantly higher than WA and the highest in the country,” Mr Collins said.  

Jones and Co director Kelly Jones said it appeared that WA had escaped the COVID-19 property slowdown.

“And given the high levels of demand and limited supply, we may even see house prices rise later this year,” she said. “People in the market for a home should act sooner rather than later.

“It’s also good news for investors because the low vacancy rate also probably means that rents will rise.

Perth median rents are still $100-$90 than they were five years ago. In fact rents are so cheap right now that people haven’t been buying. “

As well as being the most affordable State in the country, there’s the added bonus of low interest rates and all the government Covid schemes, Kelly added.

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