2017 is set to be a cracker of a year for Perth’s housing market. From low interest rates to affordable house prices, everything is in place to help buyers get into their next home or investment property. Plus, with the game-changing increase to the first home owners grant (FHOG), the year is looking particularly bright for first homebuyers.
Getting finance is the gateway to purchasing any type of property, and today’s market conditions are all in favour of the buyer. Roughly six months ago, the cash rate dropped to an all-time low of 1.5%. Ever since then, the rumour mill has been churning away with suggestions that the Reserve Bank may cut the rate even further. In fact, some economists are now predicting that we will see the rate slashed to 1% later this year.
We’ve already seen the banks drop home loan interest rates in line with previous cuts to the cash rate, so it’s very likely that this could happen again. Lower interest rates means buyers will be able to borrow even larger amounts of money and potentially allow for reduced monthly mortgage payments on certain types of loans. As if that wasn’t enough, there’s also opportunities out there for low deposit home loans. In some circumstances, you can even get a home loan with no deposit at all.
Also helping to lower deposits is the increased number of properties on the market at more affordable prices. Back in June 2014, the median house price in Perth was $545,000. Today, our median house price is to roughly $528,000, showing that there’s more activity happening in the lower end of the market. Just take a look at Nicheliving – starting from $319,000 you can get into a four bedroom, two bathroom home plus the land.
This is even better news for first homebuyers. Under the changes to the grant, eligible buyers don’t have to pay any stamp duty when purchasing a home for less than $430,000. That’s on top of the $5,000 increase to the FHOG! No stamp duty + the handy $15,000 FHOG = an unbeatable deal just waiting to happen.
So, if you’re looking at purchasing property, be it an apartment, house or investment property, there’s no better time to take the leap!