The federal election is over! So what does that mean for the Perth property market?
The number of homes for sale and interest rates are at record lows, so if you’re looking to sell in the coming year, there has never been a better time. Hear these FIVE reasons why from Brendan Leahy:
- Typically, a looming election will freeze the economy. Buyers will wait to see what happens before they make any big financial decisions. But now the election is behind us, there’s nothing holding them back! In my 12+ years in real estate, I’ve seen the property market always gain momentum after a federal election – but it won’t last forever.
- Interest rates are at an all time low, and are enticing buyers back into the market every day. Just yesterday the RBA cut the cash rate to a historic low of 1.25 per cent, putting an extra $58 in the average home owners pocket (according to Sally Tindall from RateCity). What’s more, the Reserve bank governor Philip Lowe has said there may be another cash rate cut before 2019 is out; he states “the cash rate [may] be at around 1 per cent by the end of the year.”
- Buyers will have up to $60,000 more cash to spend on your property. This is because APRA have just proposed to remove the current interest rate floor… that is, the standards the banks use to work out your borrowings; from 7.25 per cent, to 6/6.25 per cent.
- There are 15,000 new jobs in Western Australia! According to cheif economist Rick Newnham, the WA mining sector drives this boost, with $75 billion being invested in new mining or resource projects. As a result, WA businesses are expected to hire more staff and pay more in wages in 2019.
- First Home Buyers (FHB) will get 15% of their deposit covered by the Federal Government as part of a new scheme taking place from January 1st, 2020. FHB simply need to put forward 5% of their own savings to make up the 20 per cent threshold, and avoid paying Lenders Mortgage Insurance (LMI) fees. The scheme has had great success in New Zealand for a number of years, and is intended to help FHB break into the Australian property market.
So if you’re thinking of selling, continue to get your home ready… things are about to pick up.
And if you’re ready to list your home for sale, we’ve got an outstanding marketing package that will get your property the best exposure, and won’t cost you an arm and a leg.
To find out more, book your free property appraisal with me here, and find out how much you could sell for!