PERTH UNITS FAVOURABLE

 Buying a unit is more affordable in 22.% of suburbs nationwide.

Domains comparison used the median unit price for each suburb, based on a mortgage rate of 5.68% with a 20% deposit.

For the combined capitals, the research showed that it was cheaper to service a mortgage on a unit than to rent in a lower proportion of suburbs, at 20.7%.

The combined capitals experience a more noticeable jump in the number of suburbs where buying is cheaper than renting, outpacing regional Australia.

Most capital cities show a double-digit increase in the share of suburbs where units are more affordable to buy than rent.”

Domain said buying a unit was over 12 times more likely to be cheaper than renting, with just 1.7 per cent of capital city suburbs showing that for houses.

“This difference is not surprising given the significant price gap between property types,” Domain said.

Out of the capital cities, Perth showed the most favourable outlook, with 82.9% of suburbs being cheaper to buy a unit than to rent.

However, for the rest of the capitals, the majority of suburbs were cheaper to rent a unit than to service a mortgage.

In Sydney, the data showed that only 9.5% of suburbs were deemed cheaper to buy a unit than to rent, while Melbourne recorded 19.7% of suburbs.

For Brisbane, 7.9% of suburbs were cheaper to service a mortgage on a unit than to rent.

Finally, in Adelaide, data showed that it was cheaper to buy a unit than to rent in 13.3% of suburbs.

Domain noted that mortgage repayments tend to be lower than rents in more affordable areas of capital cities, including Notting Hill in Melbourne and Burswood in Perth’s south-east.

“In these areas, property prices may not be as high, but rental demand is greater because of the financial hurdles associated with purchasing a home (interest rates, saving for a deposit and stamp duty), making it difficult for those looking to enter the property market,” Domain said.

When it comes to interest rates, data showed that units were especially likely to benefit from further cuts, with pressure expected to ease on mortgage rates later this year.

The average mortgage rate, currently at 5.68%, has been forecast to fall to about 4.98% by the end of 2025.

“This shift highlights how falling interest rates will have the greatest impact on affordability for units, providing an entry point for first home buyers and those seeking more attainable housing.”

However, Domain said that prospective unit buyers should still be aware of several expected obstacles as interest rates fall.

“This improvement may come with new challenges, including increased buyer competition and renewed upward pressure on prices,” Domain concluded.

(Thanks to Domain for this article) 

Time catches up with all the prices and although people in Perth struggle with the new norm on house prices, the apartments or units are still good buying. I have been trying encourage first home buyers and investors to invest in the Mosman Park area because of it's location and the prices are still relatively low. You can still buy an apartment under $400,000 could need a little love and attention but it's still affordable.

The struggle can sometimes come from others who have no real estate or perhaps just the family home which they bought 20 years ago, the prices they paid is less than the apartment prices of today. You cannot look back you need to go forward, dont let that put you into a state of I will wait unti the prices come down - but will they?  No one can ever pick the exact time that prices will stop, drop or increase you just need to go with the flow at the time.

I remember buying my first unit for $50k and then when I wanted to buy by third it was $230,000 I did struggle with it until I kept seeing the prices go forward, just jump into and get your start on that property ladder.  Keep them for at least 10 years.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK AND THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!! 

ARE WE BEING FORCED TO DO THINGS WE DONT WANT TO DO?

 Having been in real estate for 27 years I have seen a lot of things come and go.

Having Mum and Dad be the bank for their children was pretty unheard of really unless you had extremely wealthy parents, investors mainly bought locally (usually in their suburb) down sizers would not have even considered apartment living - that would only be 8 years or so ago.

The downsizers with the lack of homes in your area you have been forced into apartment living as that's all your options, the builders have not built the homes that you want to retire in and now they would be way too expensive for you anyway.

Is it because the market is just going way above everyone's reach? My answer is yes. I can honestly see in the future that children will take over the parent's mortgages (well I suppose it depends if the Government doesn't make it too hard for the kids to get their parents super once they have gone also) this is very common overseas. Maybe you need to go on the title earlier ha ha you know what our Government is like they will invent something else so you have to sell. 

The kids just have to stay at home longer or in their parents' investment property to save their deposits and parents don't charge them any rent. There is no longer the choice for them - poor parents - poor kids.

I have also noticed that Grandparents are now being used as the sitters or nannies to help save their kids some money, so there's not grand retirement plans for them is it (just make sure you don't use your best years up here; this is the time you need to travel).

Grandparents are very special people to have in children's lives, but they need to be the spoiler, the one that does special things for the kids, not bring them up. 

Europe for a long time have had their parents in their homes, Australians have always been very different (although they are now being forced to with the lack of availability of aged care), the other option is the granny flat in the back yard - makes good sense to me.

Are we being forced to do things we simply just don't want to do? - yes as we don't have any other options as the Government is not keeping up with the demand on anything, aged care homes should have been built a long time ago for those baby boomers coming up. Now we have no hope in catching up. 

With doing a lot of appraisals for elderly people sometimes it's just too late for them to move they are too old it would kill them - I tell them the truth of course. Reverse mortgage I would never recommend it unless absolutely it's necessary, perhaps ask your older kids for money, get that put onto the title of your home for when the kids sell it, these are real options you know - talk to us if you need some insight to options or the right people to give them to you.

Is real estate too expensive - yes - but there's not a damn thing we can do about it - so if you need to buy - just buy what you can afford - do it soon - do it today stop hesitating it's not the right move.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK AND THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!! 

WA GOVERNMENT EXTENDED TWO INCENTIVES

 Western Australia has extended its short term rental accommodation and vacant property rentals incentive schemes, both of which offer cash incentives to owners who will switch their short term stays or vacant properties to the long term rental market. (surprise surprise as the rental market is still so tight, owners will have to be heavily incentivised to give up that short term rental as it's worth more to them than an ordinary rental).

Although the application window for both schemes was originally specified to end on the 30th June 2025, applicants for both schemes will now be considered until 31 December 2025, or until the funds are exhausted (fat chance of that happening).

Obviously, the catch is that you have to provide a 12 month lease to qualify for the $10,000 incentive. With vacant properties its $5,000 incentive.

The WA government is reporting that short term rental scheme has added 457 new rentals since it opened in November 2023, with the vacant properties converted an additional 249 properties since it's launch in May last year. (well I suppose that's something that is far cheaper for the Government to pay rather than build more homes!) 

We are putting on more short term stays because the return is far better. I dont disagree that it's a good incentive for vacant properties as owners have been leaving them empty for their own use when in town. Short term though the money is just too good, however $10,000 injection (they dont say if it's tax free ha ha) would be good to have.

I think that when making a decision on which way you want to go short term has to be very smick almost like a hotel room would be, you cannot really do it yourself unless you are retired and have all the time to keep checking on things.

I suppose you just have to weigh it all up and be happy with making a decision.

But good to know they have extended it so there is at least a choice of what you can do.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!! 

WHO BUYS PROPERTY?

 If you are an investor like me the reason, I buy real estate is because it's bricks & Mortar something that I can go and visually see. Just so much safer than shares or bonds and I believe not so volatile (although some years that could be debatable). 

If it wasn't for the capital gains, stamp duty I would have bought more properties. I didn't buy them to create instant wealth it was more like a 10–15-year plan (like a super fund). Wealth generation to be done over the long-term heading for that retirement era.

Most of us investors are motivated to buy an investment property when the economy is strong or interest rates are low. Landlords are typically sheltered from poor economic conditions because interest rates always fall, which reduces the biggest cost of holding property. (me I can remember 17% interest rates phew !!) 

I believe by 2021 there were about 2.2 million landlords (gee that's stack of rentals we are missing out on) which is only 8.7% of the population - where would we be without them eh? who would provide the increasingly short supply of rentals. Just keep making it harder for the investor governments and they will cash in and you will be left with trying to house them instead.

Who are these investors; well I know when I was in my 40's and owned my own home I remortgaged to buy them, you have to buy them all before you are 50 if you want to make good money as you need to hold property for at least 7-10 years, those investors that hold for 2 years will not make the same profit unless they buy in at the bottom and sell at the so called top. I truly believe you have to hold real estate to enjoy that capital growth.

I do admit that when interest rates go up to such a high rate it can be tough to hold them but be proactive and pay a bit more in advance whilst they are low so you can cope in the future.

DIVORCE - such a dirty word isn't it - that doesn't help it literally halves your fortune - that's why a lot come on the market as the agreement is reached who gets what. 

Younger investors tend to sell too quick as they lose their jobs or not working enough hours to contribute to their loans - sometimes at a loss which is very sad for them and leaves such a bad taste in their mouth.

Loan repayments get too high, and people have to sell - they just have not thought that out enough as I said earlier get ahead with the payments.

Older Australians - they transfer the property over to their kids to help them into the market, or they sell their asset to help them with their deposit - more common these days due to the rising costs.

Massive land tax changes in Victoria have created a lot of those buyers heading over here to WA - thanks Victoria you are helping WA massively.

With the rising costs of holding property and the changes of the tenancy act for tenants' rights, I had a lot of calls telling me to sell their investment - they were not going to be told what to do with their property by the Government. So much property got sold which also creates a hole for the number of rentals available for the people - GOOD ONE GOVERNMENT you really know what you are doing eh?  I tried to fend as many as I could off but when it comes to the Government becoming a communist country, they were not going to have it (old school like me).

We need to encourage those Mum's and Dad's to keep buying property otherwise there will be no rentals for those that can only rent. More people on social housing more pressure on the Government to produce the accommodation which we all know isn't going to happen.

What's good right now is the rental returns much more encouraging for the investor, not so much putting your hand in the pocket anymore.

WE NEED INVESTORS PEOPLE - they have to buy to keep the rental market alive.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!! 

END OF THE YEAR MY THOUGHTS!!

 With the new financial year approaching us tomorrow what is ahead for us in the future.

I believe that there is still a lot of buyers still in the marketplace and are wanting to purchase property. The fight for properties is still fierce and I believe it will be like that for the foreseeable future.

Although there are some agents reporting that Perth is having a slight softening in the market, I believe the top end maybe but the very top top end - no - just recently an off-market sale in The Combe Mosman Park netted the owner $21,500,000 - so things are not that tight, eh? 

8.6% in Perth over the last 12 months to June 1, apartments growing faster than houses, which is only saying one thing really, buyers cannot buy houses in those wealthy areas anymore.

Regional Western Australia outperformed again with a 12.5% lift in home values over the year to June 1.

First home buyers and investors you need to assess your options and act. There is plenty of opportunity for buyers all over the country right now. (Perth is my favorite of course) 

Sellers you can still expect excellent results if your homes are marketed and presented to the best of your ability. If you need any advice, please call us asap to give you some ideas.

Banks - The mortgage wars have restarted (not sorry for the banks I can assure you it's about time) banks are offering highly competitive fixed and variable rates (go to a broker you will get the best possible rate that is out there). More interest rates to come - so make sure you look at the variable - again go with a recommended broker. (email us for ours)

Baby boomers - they are busy freeing up their cash so they can help their family/siblings get into the housing market, they are also great investors, they can afford to buy somewhere and or look at the most suitable blocks to build what they seeking (since the builders are not building what they need)

High rents - gross yields on apartments remain above that 4% in every city and region and yields on houses are above 4% in all regional markets.

The high rents are increasing investor activity and inspiring more of the rental market to start looking at buying their own homes. The promise of the First Home Guarantee, which will allow all first home buyers, regardless of income, to purchase with a 5% deposit, no mortgage insurance and a government-guaranteed loan, you have to ask yourself will that bring more young people into the market across the country (seriously don't think so in Sydney do you?) First home buyers are going to struggle let's face it and if they don't get any help with parents it's going to be way too far out of their financial reach.

We would have one of the world's most valuable property markets right now, with the upper end prestigious homes, waterfront homes still attracting huge prices much more than homes in the world's most desirable lifestyle locations. (Perth has become a very desirable place to live and bring up your children)

One thing Australians are not that fond of is having their elderly parents in their back yard anymore - why is that? Is it because they have been having their children later and they still have those children they need to look after when their elderly parents also need their help, plus holding up a job - boy they have a lot on their plate?

Low- and middle-income earners are also facing significant challenges with this highly valuable market. People are appearing to remain strongly motivated to achieve home ownership. Rising trends such as the Bank of Mum & Dad, rentvesting, city switching, co ownership between friends and siblings, multi-generational living (well Perth's not too hot on that one) these are all examples of Australians creativity in finding ways to buy a home. (I can see us handing down the homes with their mortgages to the kids just like Hong Kong has been doing for many years) - if you don't believe it's coming just look at the house prices where you have lived for 30 years and wonder how the kids are going to get in now. 

Buy somewhere you can afford and rent where you want to live is one of the options, someone will always rent your place as rentals are so short.

One way or another if you have not bought or not intending on buying for a few years yet, god help you you will be buying way out of being close to the city.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!! 

STATE BUDGET 2025-26

 (thank you to Reiwa for this report) 

REIWA Advocacy Update - 20 June 2025   There were few surprises for housing in the 2025-26 State Budget, with funding allocated for previously announced election promises, including stamp duty concessions for first home buyers, loans for modular housing and shared equity loans. Below is a summary of the key points. You can read REIWA President Suzanne Brown’s full response here.  Housing affordability and accessibility  ·  $119 million to reduce stamp duty costs for first home buyers.  ·  $210 million for new Keystart initiatives including loan products for modular homes, apprentices and graduates, as well as an expanded shared equity scheme to support 1,000 loans for new apartments and townhouses. REIWA welcomes the increase to the thresholds for the First Home Buyer Rate of Duty, but would like to see the thresholds pegged to REIWA’s median and lower quartile prices to ensure they better reflect market conditions and ensure the concessions are available to as many first home buyers as possible. The rental market  ·  The WA Rent Relief Program to support tenants facing hardship has been extended to 31 December 2025. ·  $75 million has been allocated to the Build-to-Rent Kickstart Fund to provide low and no-interest loans for up to 10 years to assist in the delivery of Build-to-Rent  projects. The fund will be administered by Keystart. This investment in build-to-rent won’t have an immediate impact on the market, but it is a move in the right direction and will help meet future demand as our population continues to grow. Social housing ·  $246 million for 548 additional social and affordable homes in partnership with community housing providers and the Federal Government's Housing Australia Future Fund. ·  $177.4 million for the maintenance of social housing. REIWA members have seen firsthand the toll the rental crisis has taken on the more vulnerable in our society and REIWA's 2025 State Election platform called for ongoing investment in social housing. Regional housing ·  $104 million has been allocated to double the Government Regional Officer Housing (GROH) construction program, aiming to deliver over 100 new homes in the regions over 2026-27 to 2028-29. ·  $25 million over four years for the Regional Housing Support Fund, which will provide grants of up to $5 million to support new housing and land supply across regional WA to support regional subdivision, and providing additional support to key worker and community housing projects to boost the viability of regional Housing Projects. ·  $43 million for 169 residential lots at Mulataga in Karratha, part-funded by the Federal Government. REIWA welcomes the investment in GROH but notes these homes are needed now. Construction With housing supply continuing to be a key issue for WA, the Budget also provided a range of support for construction. ·  The first $101 million of the $400 Housing Enabling Infrastructure Fund to fund 21 projects in metropolitan Perth and key regional areas to provide about 33,000 new residential housing lots. · 49 million to continue to expand the construction workforce including increasing the number of apprentices funded through the Group Training Organisation wage subsidy to 1,000 and making more construction TAFE courses free to train more tradespeople. ·  $50 million for the Housing Innovation Fund to support alternative production methods, building materials and approaches that help building more houses faster. REIWA welcomes initiatives that may boost housing supply but also acknowledges there are many other factors that are currently impacting the timely delivery of new housing, such as delays in getting land titles and energisation for completed builds. Cost of living - housing ·  $337 million for the State’s Residential Battery Scheme. This complements the Federal Government’s subsidy and is expected to provide cost of living relief to 100,000 households. As part of the scheme, households with an income of less than $210,000 will have access to no-interest loans, making savings through solar power more accessible. REIWA welcomes the opportunity for more people, particularly lower-income households, to have affordable access to solar power.  (Now from me - really with $40 billion in the deficit guys and all the money you have had come in from the GST etc. you have not paid one cent back)  Keep splashing the cash around Labour act like real heros - god knows how anyone is going to pay anything back.  Maybe we need a recession!!!  MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!! SELLING MOSMAN PARK & THE WESTERN SUBURBS!! KEEPING IT REAL IS OUR MOTTO!!