Rebound areas in WA offer opportunities
Favourable market conditions offer ample opportunities for investors waiting to jump into property in WA, especially in ‘rebound areas’, according to RE/MAX WA managing director, Geoff Baldwin.
Some semi-regional and areas just outside of Perth offer terrific value, especially from a positive geared point of view, Mr Baldwin told Smart Property Investment.
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“Mandurah and Bunbury are two areas that have suffered quite badly during the downturn over the last four years or so,” Mr Baldwin said.
“It has left it in a position where there is still high rental demand. However, the prices at the moment are still such that you can get some very good buys.”
He explained that it is often the “rebound areas” that offer the best opportunities.
In the metropolitan areas, Mr Baldwin pointed to Armadale as a good investment opportunity as the area is undergoing rejuvenations.
“They are knocking over the old houses and building new villas and so forth. [There are] some very good values there,” he continued.
Although prices, rental returns and low borrowing costs are currently ideal, property investors need to act quickly if they are to take advantage of WA property market, Mr Baldwin said.
“Fixed interest rates are as low as they have been for several years and are predicted to go lower, massive rental demand is seeing returns increasing almost weekly and, although stock is beginning to diminish, there is still some great value available in the WA market”, Mr Baldwin said.
“For the first time in years we are able to offer positive geared properties whereby the rental income will cover the costs after tax for many investors, so people have the opportunity to get into the market without it being a drain on their income.”
Mr Baldwin said he has seen his recent workshop numbers triple what they were a year ago and increased demand for their off-the-plan developments, which he attributes to the advantage of buying in today’s market and settling in an improved market.
“As stock continues to decrease, there will obviously be less choice and, hence, upward pressure on prices. People considering investing in property should take action sooner rather than later”, Mr Baldwin said.