CON­DI­TIONS LIKE THIS AGAIN

Southern Gazette (South Perth) - - RESIDENTIAL -

2017 will be the year that the mar­ket in Perth starts to grow again.

Now is cer­tainly the time to buy, as there is very lit­tle new apart­ment stock on the mar­ket and we see a sig­nif­i­cant short­age of apart­ments com­ing in 2017 and 2018.

There sim­ply aren’t enough apart­ments be­ing built to keep up with de­mand.

There is a large shift to­wards more apart­ment liv­ing – cur­rently about 15 per cent of peo­ple live in apart­ments and this will move closer to 30 per cent soon.

What are your top tips for buy­ers and sellers look­ing to make their move in the lo­cal mar­ket this year?

Do your re­search and en­sure you are buy­ing from a trusted de­vel­oper.

Buy prop­erty types where there is a de­mo­graphic trend to­wards in­creas­ing de­mand, such as apart­ments.

Think about whether you re­ally need a back­yard and whether you want to be liv­ing a long way from ac­tiv­ity and the city.

Perth has be­come a far more vi­brant and live­able city, so far more peo­ple are want­ing to be closer to the ac­tiv­ity rather than stuck out in the sub­urbs.

If you’re a first-home buyer, it’s a great time to buy, es­pe­cially given the First Home Own­ers Grant in­crease to $15,000.

Many peo­ple buy apart­ments off the plan for their first pur­chase, which gives them time to keep sav­ing more for a de­posit but se­cure some­thing while the prices are low, and there are a wide range of op­tions. SATTERLEY PROP­ERTY GROUP CHIEF EX­EC­U­TIVE NIGEL SATTERLEY

What is your opin­ion of the past year in Perth real es­tate?

Aus­tralia is one of the great­est coun­tries in the world to in­vest in res­i­den­tial land de­vel­op­ment. Nigel Satterley.

Prop­erty is a very sound in­vest­ment prod­uct and I be­lieve Aus­tralia will ben­e­fit greatly from Brexit and the Trump elec­tion.

We have seen other Aus­tralian states take off; how­ever, Perth is still in the lower end of the prop­erty cy­cle.

Over the past 12 months we have con­tin­ued to see a slight ad­just­ment, with a de­cline in prices in WA.

Even though we have had steady and low in­ter­est rates, consumer con­fi­dence has been down due to job se­cu­rity and the de­cline of the re­sources sec­tor.

What ev­ery­one must re­mem­ber is that the prop­erty mar­ket is cycli­cal and Perth will have its time again.

Prop­erty is a safe, long-term in­vest­ment for fam­i­lies.

What are your pre­dic­tions for the mar­ket for 2017?

I don’t be­lieve we will reach re­cov­ery mode in the prop­erty mar­ket for at least an­other 18 months, so this year will be very sim­i­lar to the past year, which makes 2017 the right time for those want­ing to up­grade, in­vest or en­ter the prop­erty mar­ket for the first time.

There may be an­other slight ad­just­ment to res­i­den­tial prices be­fore it bot­toms out.

It’s ab­so­lutely a buyer’s mar­ket and the per­fect time to en­ter or buy that in­vest­ment prop­erty.

What are your top tips for buy­ers and sellers look­ing to make their move in the lo­cal mar­ket this year?

The most im­por­tant thing I tell peo­ple is to do your home­work.

Look for the best deal and be a hard ne­go­tia­tor.

And when I say deal, I don’t mean the cheap­est – price is an im­por­tant fac­tor but look for real value.

Not only is hous­ing more af­ford­able and in­ter­est rates at a record low, the State Gov­ern­ment’s re­cent an­nounce­ments to in­crease the First Home Own­ers Grant from $10,000 to $15,000 un­til De­cem­ber 31, 2017, and Keystart (low de­posit home loans) to in­crease the in­come thresh­old by $20,000 will as­sist more West Aus­tralians with their home­own­er­ship dream.

In the prop­erty game, it’s im­por­tant for buy­ers to strike while the iron is hot to get the best price and value for money. I don’t think we will see con­di­tions like this in Perth again for a very long time, if ever.

Look for ar­eas close to pub­lic trans­port, shops, med­i­cal fa­cil­i­ties, schools, recre­ation, trans­port links and em­ploy­ment ar­eas if you want your in­vest­ment to in­crease in value over time.

Re­mem­ber, the value is al­ways in the land.

For sellers, my tip is to re­alise the mar­ket is what it is.

If cir­cum­stances mean you must sell your home in this soft mar­ket, then you must price it ac­cord­ingly.

You can’t ex­pect to sell it for more than it’s worth or what you would have got for it or even what you bought it for a few years ago.

If you want it to sell, you must sell it for what it is worth at to­day’s price.

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