ANZ WAY OFF

 Comments from Hayden Groves (REIWA) 

ANZ'S PREDICITION

“Sadly, this is yet another example of an east-coast based bean counter squirrelled away in a back room handed the task of predicting our local property market from afar.”

 Mr Groves pointed to several reasons why he feels Perth’s market could take a different direction from what some of the major financial institutions are projecting.

An expected interest rate peak followed by an eventual decline is one such facet.

 “It is widely predicted interest rate rises will settle within the next nine to 15 months, leaving a typical variable mortgage rate of about 5.8 percent; historically relatively low. At this level, this will add about $880 per month to the average Perth mortgage compared to their lowest point,” Mr Groves said.

 He argued that at that rate, Perth residents would fare much better than their counterparts in larger cities, such as Sydney, who will be facing roughly $1,750 per month added to their mortgage. Where distressed sales might rise in the more expensive capitals, Perth residents should be able to manage the hike.

 “Perth remains the most affordable capital city in Australia at a median house price of $585,000. Adelaide is next on the list at $699,000. Our average of 26.6 percent of earnings going to service our mortgage is well below the national average of 37.3 percent,” he noted.

 Migration, he said, was also moving in the right direction.

 An inflow of new Perth residents was “keeping demand for housing strong in an under-supplied market,” Mr Groves opined.

 “Overall, for-sale listings in Perth are 14 per cent below this time last year and 32 per cent below the five-year average. At the same time, sales volumes here remain strong, up a whopping 52 per cent on the five-year average.”

 Furthermore, Mr Groves believes that not only will Perth’s prices remain stable, but that its small fluctuations in relation to the rest of the country will further bolster the city’s prospects.

 “As east coast markets tank, surely people will look west to take advantage of our enviable lifestyle and relatively cheap housing,” he said.

 And for those who believe that the banks still know best, the industry veteran cautions that it would be wise to learn from recent history.

 “I recall when COVID-19 first hit, all the banks thought Australian property values would fall an average of 20 per cent,” he noted. “They were about 40 per cent out.”

Vivian's have found that the rentals are being taken up even before they hit the market, we are now experiencing walk ins which we didnt have too many of them before.  Rentals are in such high demand it's unbelievable how people are so desperate for them. 

I can see such issues with obtaining a house in the future with so many land owners making a decision to get out of being a landlord due to the proposed changing laws towards the tenants rights.  Something that REIWA is trying to fight off, (already in the Eastern States).

What really worries me though is a Greens Councillor from Brisbane (Jonathon) rabbited on about all these vacant properties from these greedy land owners and how they should be offering them up to rent their properties out as in his opinion thats a small solution to the housing shortage (this guy didnt give any real facts or figures or anything just blah blah) no wonder people are throwing the towell in as a landlord.

https://7news.com.au/sunrise

Well if you need any advice please call Trent or myself it costs nothing for some free advice.

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

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!