24 May The Best Time to Invest in the Residential Property Market
Have you been holding your breath when it comes to investing in WA’s residential property market? It can be difficult to decipher up from down with whispers coming from every direction further confusing buyers, whether they be first-timers or seasoned investors about the state of the market and the ideal time to purchase.
Nicheliving prides itself on being on top of all the latest market trends, making us a source you can trust with your hard-earned cash. The concept of the grass always being greener on the other side in regards to waiting to invest in the residential market is not the suggested approach, we recommend making the best of the market at this current time. Here are a few reasons as to why now is the best time to invest in Perth’s residential property market:
- Tax savings
Saving tax and putting these funds which would have otherwise been paid to the tax man, towards an asset has always been considered attractive to mid and high-income earners. As far as the government is concerned, the tax incentives attract investors to buy rental properties which means the rental market remains stable and renters don’t end up homeless!
The low interest rates and limited availability of rental properties due to inactivity in the investor market for several years means that investors are enjoying yields well above average. Homes are costing less to hold, allowing many investors to reap the rewards of properties that not only cover their holding costs, but also end up being cashflow positive.
- Capital growth
Australians have had a long love affair with property as an asset. With the sentiment being so positive, supply levels so low, and the demand steady, investors predict an upswing in prices over the next few years and are investing in property to ride that future wave.
- Government incentives
A significant amount of cash is being invested by the government into the property sector to ensure supply levels remain steady and that there is some degree of affordability for first time buyers. Naturally, this leads to increased demand which has a positive impact on liquidity and growth.
Although it must be stressed that when you decide to invest, ensuring that you deal directly with a reputable developer rather than going through middlemen is the key to getting better value for your money and guaranteeing that you do not over-capitalise on your purchase. Luckily, being Western Australia’s largest infill developer, Nicheliving is fully equipped with a direct distribution arm, this means no middlemen and no mucking around when it comes to your investment.