From The Desk of The CEO - Now hopefully they will get on with it!

I think we are all thinking that after a long campaign by all the political parties, I certainly won’t be missing Clive that is for sure after haunting us on the tv for months. Here in Western Australia we do have some positives but most have been drowned in the constant negativity of the politicians over the last few months. Positives are the launch of Keystart, a state initiative which we only have here in Western Australia. It has been relaunched recently with new funding enabling people to buy property with lower deposits and not attracting mortgage insurance if you are borrowing more than eighty percent of the worth of the property. The other benefit is that you can have as little as two percent deposit however there are conditions and limits but is a good way to get started for your first home or trying to get back into market. Mining is all the talk again and with increased Iron Ore prices we are seeing more potential mines or increased production and that is starting to flow into more job opportunities for our state.

Inquiry is on the improve for buying property. It has not yet fully flowed into increased volumes of sales but the signs are better for sure and expected to continue to improve. Rental vacancies are down which is great news for landlords and there is now pressure on rents to rise so plenty of investors will be happy to see that. Currently there is some extraordinary value in the market for buyers and a current example of that is a recent sale of a three bedroom, two bathroom villa sold for $245,000 with rent return of $280 per week in Midland.

The soon advised tax decreases plus the potential of lower interest rates will inject around ten billion dollars into the economy over the next twelve months which will flow through and have a positive impact on all forms of business and onto real estate. Confidence is the key to any economy and we have certainly lacked that in recent times here in our state and Australia as a whole. As it grows people look forward more and plan for the future rather than surviving in the now. It has been a tough few years for many, we are not looking a boom more but like a steady flow of improved sales numbers and more predictable going forward. The second half of this year will present opportunities for buyers as well as sellers and we see 2020 certainly in a new light. Let’s crawl before we run, little signs of improvement are starting to show but we are a long way off the market we saw once before. Opportunities are there for the astute and I believe that will continue. Keep an eye on the job numbers and the other stimuli the government introduce into the market.

For the first time in a while the light at the end of tunnel may not be a train but an escape from these darker times.

Written by Milton Rendell, CEO – Real Estate Plus Group