Page 5 - Newsletter Issue 10 - March 2020

Perth rents increase for the first time since January 2 0 1 7

Perth Sales Market

Sales activity increased five per cent in February, compared
to the previous month building on January’s
improvement. Mr Collins said it is pleasing to see the sales
market showing a strong gradual improvement over the last
four months. “With sales activity on the rise, listings for sale
were stable in February and it took on average only 47 days
to sell, which shows that current stock is being absorbed at a
faster rate,” Mr Collins said.

Median Sale Price

“CoreLogic’s Home Value Index increased in Perth by 0.3 per
Perth’s median rent increased to $360 per week in February
and is the first increase the Western Australian property cent, which can be attributed to the increase in sales activity
market has seen since January 2017. and stabilised listings. If things continue on this upwards
trajectory, median prices should continue to increase – which
REIWA President Damian Collins said median rents had hasn’t happened since June 2018.
remained stable for the longest period since reiwa.com first In February, reiwa.com data showed that the median sale
started capturing rental data in 2001. price in 65 per cent of suburbs had an increase or remained

“While the overall increase in median rent was up by $10 per unchanged, with Kallaroo showing the biggest increase of 8.1
week in February, this is a significant step in the WA property per cent to $735,000.

market and one we have been waiting a long time for. “Following Kallaroo, Mount Pleasant,
Wannanup, Mindarie and Woodvale rounded out the top five
Vacancy Rate
with all bar one suburb (Wannanup) having a median sale
“This increase can be attributed to Perth’s vacancy rate price higher than the Perth median of $480,000.
dropping to 2.2 per cent, which is the lowest it has been since
March 2013, coupled with listings for rent on reiwa.com Property Market Improvements

being down compared to January.” The top suburbs by “After a long stretch of declines in the WA property market, it
median rent price growth for February include Stirling, is great news that we are starting to see gradual
Shenton Park, Ocean Reef, Thornlie and Bertram. improvements. This could be the impact from various
government initiatives and the lowered interest rates by the
Leasing Activity
Reserve Bank of Australia put in place last year.
“Leasing activity dropped nine per cent compared to January
and days to lease has improved by one day to take on “With the RBA announcing that interest rates will be again
average only 28 days,” Mr Collins said. “As we head into lowered, taking the cash rate to 0.50 percent, hopefully
March, which is usually one of the busiest months of the year banks pass this onto lenders, which will help continue to
for the rental market, it will be interesting to see how the improve the sales market and WA’s economy,” Mr Collins
market performs and if rents continue to rise, which is said.
possible given the low vacancy rates.” If you are looking to SOURCE: https://reiwa.com.au/about-us/news/perth-
rent and want to know the latest info and trends, check out rents-increase-for-the-first-time-since-january-2017/
our rental advice.
What options do first home buyers have apart from

the First home Loan Deposit Scheme?

The First Home Loan Deposit Scheme (FHLDS) came into effect Pay for LMI
on January 1 2020, allowing eligible buyers to
purchase a home with as little as a 5 per cent deposit. If you only have a 5 per cent deposit for a home you may still
be able to take out a loan without being approved for the
The scheme has already been popular, with 3000 of the FHLDS, however you will need to pay LMI.
10,000 loan guarantees already reserved on day one of the
scheme becoming available, according to Domain data. This is a one-off fee applied to a home loan to protect the
lender in case there is a default in payments.
But the FHLDS certainly isn’t for everyone. If you miss out on
the first round of the scheme, or find that you aren’t eligible, LMI can cost thousands of dollars, but every lender has
you still have a lot of options for breaking into the property different requirements so you will need to check with your to
market. find out what your obligations might be.

Keep saving Take advantage of other first home buyer incentives

While it may sound appealing to be able to jump in the If you’re a first home buyer then you may be able to take
property market with a meager 5 per cent deposit, the reality advantage of a state government grant or a stamp duty
is that the bigger a deposit you have saved, the better off you exemption to help you get into the market sooner.
could be in the long run.
Grants and stamp duty exemptions vary from state to state so
Ideally you should be aiming for about a 20 per cent deposit visit www.firsthome.gov.au to find out what you could be
to avoid paying Lenders’ Mortgage Insurance (LMI), but eligible for.
another reason to pay more is because you won’t need to
borrow as much from your lender. Keep in mind however that most incentives are available to
first home buyers purchasing a new property.
The more you need to borrow, the more interest you will
need to pay, and it may put you in a tight financial situation. If you’re interested in finding out more about the First Home
So unless you are especially eager to jump into the property Loan Deposit Scheme visit www.nhfic.gov.au/what-we-do/
market you might be best waiting until you can save up a little fhlds/.
more first.
SOURCE: PRONEWS/Issue81February2020