Investors and upgraders looking to take advantage of the Western Australian property market are being urged to act now, as early signs are signalling steady price growth over the next 12 months, according to RE/MAX WA managing director Geoff Baldwin.
“All indicators are pointing to the Western Australian property market beginning a steady recovery and for prices to rise steadily during the next 12 months and beyond”, Mr Baldwin said.
“Since the beginning of spring we have seen significant increases in buyer activity and this is starting to reflect in increased sales volume.”
While many home buyers may be tempted to sit and wait for their property to increase in value prior to selling, this tactic could lead to higher costs over the medium to long term.
“When people see the market showing signs of improvement the temptation is to hold off and wait for more profits from your current home however this can be a big trap if you are considering upgrading,” Mr Baldwin said.
“If you current home is currently worth say $500,000 and you are looking to buy a better house that is currently worth say $700,000 the gap is $200,000 today,” he said. “However, if you wait for the market to increase 10% you current home will go up to $550,000 but that better home will go up to $770,000 increasing the gap to $220,000 and costing you an extra $20,000.”