Is Perth property the answer for eastern state millennials?
According to a Raine & Horne principal, first home buyers along the east coast of Australia could potentially solve their housing affordability issues by purchasing Perth investment property.
Paul Curran, principal of Raine & Horne Rockingham Beach, says it can be difficult for first home buyers in Sydney, Melbourne and Brisbane with limited funds to identify affordable suburbs.
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“The trouble is that median house price in Sydney is around $1 million and around $830,000 in Melbourne. In contrast, the median price in my patch of Rockingham is just $425,000,” Mr Curran said.
“Therefore, buying an investment property in Perth could be a good strategy for young Sydney and Melbourne millennials wrestling to buy into the real estate market.”
Mr Curran added that owning an investment in one state may not necessarily bar first home buyers from available grants for buying a first home in another state.
“For example, if you buy an investment property in Perth, this won’t affect your eligibility for the first home owners grant in Queensland,” he said.
While changes made by the federal government curb travel allowances for interstate investment properties may cause investors to think twice about interstate investment properties, Mr Curran says this is nothing to worry about.
“There’s no doubt that a small minority of interstate investors may have taken advantage of the travel tax loophole to visit Perth more regularly,” said Mr Curran.
“While the rental market in Perth has a few short-term challenges, the clear majority of our interstate owners have purchased properties in Rockingham to take advantage of the long-term growth and yield potential of our region, rather than to rack up tax deductible holidays.
“They buy the investment and then select a professional property manager … to manage the asset for them.”
