Why buying property in Perth is ‘the best thing’ to do right now
Channel 7 Chairman, Kerry Stokes, has staked his reputation on the fact that Western Australia is the best place to buy property right now.
The Australian business magnate, who also holds interests in property, mining and construction, said that conditions are ideal for entering the Perth and Western Australia housing market, staking his reputation on now being the best time to invest.
“Right now, any young person out there, any apprentice, worker, tradesman — the best thing they’ll ever do in their life is walk out this weekend and buy a home in Western Australia,” Mr Stokes said.
“With interest rates low, housing prices low, this is the time to think of their future. Right now, I’d put my reputation on the fact this is the best time for them to do that,” he said.
The comments were delivered at a recent WestBusiness Leadership Matters event, which brought together some of Western Australia’s most powerful business figures.
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The remarks follow Housing Industry Association (HIA) figures showing affordability in Perth has improved dramatically. In the past two years, loan repayments on a median-priced house in Perth fell by more than $260 a month, or $3120 a year.
Recent figures from CoreLogic have also given rise to industry commentary that the Perth market is showing signs of entering its next cycle. Herron Todd White, Managing Director Brendon Ptolomey told WA Today in October that housing recovery is well and truly under way in Perth and WA, particularly in the wealthy western suburbs.
“For bargain hunters, it may be time to look further out from the near city suburbs and for investors, it is most likely time to look through the over supplied suburbs for a decent quality home with good rental prospects, it is likely that some of those properties will never be cheaper.”
Ironfish CEO and Founder, Joseph Chou agrees that the outlook is positive for Perth, and has actually stated that he personally plans to invest in residential property in Perth next year.
“This year I’m settling about 12 properties, in Brisbane, Melbourne, Adelaide and Perth. For the last two years almost all my investments have been in Brisbane and Melbourne; I’ve bought a few in Adelaide, and the most recent one was in Perth.
“To me, it makes sense to think outside Sydney and buy into the most prestigious, most affluent suburbs in other cities, which are often half the cost of Sydney.
“I decided to get into the Perth market these last few years, simply because the people who make the most money are those who get into the market early before the next wave. Of course, this takes courage, insight and foresight as well. Most people don’t feel comfortable doing something when nobody else is doing it.
I bought an off-the-plan property from Mirvac a couple of years ago, which hasn’t settled yet, for under $800,000 in a Mosman equivalent suburb of Perth. The same property in a peak market would be a $1.5 – $2 million property. To me, that’s a no-brainer. I just put in my 10% and bide my time.”
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