Property investors looking for a good buy in a capital city should now consider the Perth market.
Blogger: Rory O’Rourke, principal, O’Rourke Realty Investments
Property sellers inare now offering some of the biggest discounts in Australia as underlined by the latest CoreLogic figures.
CoreLogic figures for the year end September 2015 show the average discount off listed house prices in Perth was 6.2 per cent and seven per cent for units.
However, in terms of discounts for units, Perth is now the best capital city to secure a bargain with the average discount of seven per cent, which is now the highest in Australia, with Darwin holding second place at 6.7 per cent. In comparison, the average discount off the listed price for a unit in Sydney stood at just 3.9 per cent.
This price discounting in Perth has seen the median house price drop by 3.8 per cent over the past year, and prices are still under pressure.
A key part of buying prime real estate is all about timing. Most first-time investors make the mistake of buying at the top of the market based on publicity hype with headlines saying ‘buy, buy, buy,’ rather than at the bottom of the market when everyone is saying not to buy.
It is also important to consider that ongoing publicity about the downturn in the resources boom in WA ignores the fact that the state still has a diversified economy with other sectors now performing strongly, such as agriculture.
It is only a question of time before consumer sentiment improves and the property market in Perth rebounds.
Based on my experience in the property market for over 40 years, I believe now is a great time to buy an investment property in Perth because it is a bargain hunter's paradise.
Currently, there are great bargains to be had in the apartment market due to an oversupply in some areas because of overbuilding by developers.
If you buy an apartment in a good location in Perth at a heavily discounted price, then you will secure a great property investment moving forward.
Over the years I have purchased a number of apartments for investment purposes in Perth, and below I have highlighted some of the important lessons I have learnt from this experience:
Tips for buying an apartment for investment purposes: