Category

Real Estate

Author

Wade Dobson

FOLLOWERS

West Australians urged to hold onto their investment properties

17-Apr-2023
RentalHold
Real estate and mortgage broking industry experts are strongly urging West Australians to hold onto their investment properties.

The calls come as recent Government Bonds data reveal the number of rental properties in WA has fallen by almost 5,000 in the last 12 months, and a decline of 19,000 since numbers peaked in 2021.

Realmark managing director John Percudani said, while legislative uncertainty and rate rises have contributed to the exodus from the market, it’s an ideal time to be a property investor.

“The rental market is very -investor favorable in Western Australia, and with increase demand comes an attractive combination of  rental yield and capital growth for property investors,” he said.

“I always encourage investors to consider yield, the underlying asset quality and the potential for capital growth when making decisions about buying or selling.

“The current environment in Perth and in regional WA suggests fantastic potential for return and capital growth on the quality property assets that exist here.

“In comparison to markets on the east coast, we still have more affordable housing, strong occupancy security and a stable economic environment.

“I strongly encourage existing investors to stay in the market and consider expanding their investment portfolio in key markets.”

A recent Federal Government report revealed WA was facing the largest housing shortfall in the country over the next five years.

REIWA CEO Cath Hart said the decline in rental property volume is a continuing trend.

“The priority needs to be how we get those 19,000 investors to come back and a buy a property they will lease to someone else,” she said.

“Perhaps even more importantly, ensuring that those people who do currently own a rental property, hang on to it and keep renting it out.” 

Capita Finance Solutions general manager Brad Driffill said mortgage brokers can help existing and new investors navigate the challenges of changing interest rate rises.

“With many investors coming out of fixed rate loans, they’re facing significant increases to their repayments,” he said.

“However, lenders are offering attractive incentives to borrowers to retain or earn their business.

“I encourage borrowers to speak to their mortgage broker or Capita Finance directly to leverage the experience and contacts of a mortgage broker to achieve an optimal outcome to see maximum return from their property investment.”

To speak to a mortgage broker, contact Capita Finance Solutions on 6233 9200.


Disclaimer: This information is general in nature. Realmark and Capita Finance Solutions do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.
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