Strong Perth Market Helps Real Estate Investors Grow Their Portfolios

This was revealed by real estate consulting firm Dynamic wealth, who cited the revised version of CoreLogic PerthPerth, TAS Perth, WA annual domestic market price growth of 18.1 percent in early October, proof of the scorching heat in the Western Australian capital market.

According to Caylum Merrick, finance team leader at Momentum Wealth, a growing number of Perth property owners are capitalizing on good market conditions.

“With Perth property values ​​showing steady growth over the past 12 months, many homeowners have benefited from an increase in the equity in their property and see it as an opportunity to review their financial situation,” he said. -he declares.

The buzz created by the booming market and historically low rates have led a growing number of new and existing investors to want to use their equity to finance an investment or consolidate their position, Momentum Wealth noted.

In fact, investor lending in Western Australia increased 86.35% in August 2021 from the previous year, according to data from the Australian Bureau of Statistics.

“We have also seen similar growth in investor demand, with many investors recognizing the unique opportunity to capture both growing conditions and strong rental yields, with Perth continuing to offer some of the most competitive rental yields. of the country, “Merrick noted. .

Shift into high gear

It appears that this uptrend is an indicator that the market is shifting into high gear and will continue to do so based on figures from the Real Estate Institute of Western Australia (REIWA).

In October 2021, REIWA reported that an average of 970 properties were sold per week as the number of listings declined. The number of real estate listings has almost halved since it peaked at 16,969 in November 2015.

“There is no sign that the current growth phase has run its course, with increased mining activity, widespread skills shortages and still low inventories all of which are supporting market growth,” he said. he declares.

In addition, the chief financial officer said investors who seize the growth opportunity presented by the expected growth of the Perth market would be able to take advantage of further advances as border restrictions ease. and that mobility will increase.

“Investors who act now will likely be in a stronger position to capture further increases in demand that will come with the easing of border restrictions,” Merrick said.

However, he advised investors to be cautious, warning them that real estate investing is not a one-size-fits-all strategy. Having the right strategy and the right funding structure in place is essential.

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Real estate

Real estate is a type of real estate that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

Strong Perth Market Helps Real Estate Investors Grow Their Portfolios



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Last updated: November 17, 2021

Posted: November 18, 2021