C
Contrarian
It's about supply and demand. The demand skyrocketed during the mining boom. And a whole lot of people came over to WA. And then interest rates were at an unnaturally 30 year low in the mid-noughties. And then people started buying second properties with money they didn't have i.e. equity.
Enter the noveau riche a.k.a. cashed up bogans who could afford higher rents and people who had to compete with them. It reached the stage where landlords were putting people in one room and expected them to outbid each other.
The GFC came along and some people were caught out - banks repossessed their houses but the borrowers were dismayed that the selling price of the house was LOWER in value so they still had to repay a debt to make up for the deficit.
Conventionally, borrowers could get loans for 33 year loans. Enter the 44 year loan and some people have taken it up attracted by the even lower repayments. All that being said Armada, for years many people have felt that Perth had to catch up with Sydney and Melbourne. And it appears they have. Also remember that the motives are now different as the people get wiser. They look at Sydney where people bought cheap land in the 1900s and have now made a killing. In two capital cities, people have decided to speculate i.e. Darwin and Perth because they believe the population CAN ONLY go up. And then greed feeds upon greed.
I dread to think WA goes the way of Sydney and Melbourne and almost every house is sold via auction and substitute bidders who drive up prices falsely.
So will property prices go down in Perth? Well, all over the world, property prices go up and then go down. To me it's simple - you look at what you can afford to repay and then go for it. Of course, you assess things like your needs e.g. near a railway, school etc. I think too many people want it all right away. There's no need to go for the 4 bed, 2 bath house with home theatre when a lovely 2 bed townhouse or apartment will do and then trade up as the years go.
Thus endeth the sermon. Go in piece (of land).
Enter the noveau riche a.k.a. cashed up bogans who could afford higher rents and people who had to compete with them. It reached the stage where landlords were putting people in one room and expected them to outbid each other.
The GFC came along and some people were caught out - banks repossessed their houses but the borrowers were dismayed that the selling price of the house was LOWER in value so they still had to repay a debt to make up for the deficit.
Conventionally, borrowers could get loans for 33 year loans. Enter the 44 year loan and some people have taken it up attracted by the even lower repayments. All that being said Armada, for years many people have felt that Perth had to catch up with Sydney and Melbourne. And it appears they have. Also remember that the motives are now different as the people get wiser. They look at Sydney where people bought cheap land in the 1900s and have now made a killing. In two capital cities, people have decided to speculate i.e. Darwin and Perth because they believe the population CAN ONLY go up. And then greed feeds upon greed.
I dread to think WA goes the way of Sydney and Melbourne and almost every house is sold via auction and substitute bidders who drive up prices falsely.
So will property prices go down in Perth? Well, all over the world, property prices go up and then go down. To me it's simple - you look at what you can afford to repay and then go for it. Of course, you assess things like your needs e.g. near a railway, school etc. I think too many people want it all right away. There's no need to go for the 4 bed, 2 bath house with home theatre when a lovely 2 bed townhouse or apartment will do and then trade up as the years go.
Thus endeth the sermon. Go in piece (of land).
