Unlocking Financial Wisdom at any age, the Top 6 things you can impart now!
Nurturing Financial Life Skills in Children
In the intricate tapestry of life, imparting financial literacy to our children stands as a crucial thread. The earlier we weave this thread, the more resilient and empowered our children become in navigating the complexities of the financial world. It’s a lifelong skill that transcends age, and there’s no better time to start than now. I’ll discuss some easy principles to start with and some fun learning activities to engage in with your soon to be financially savvy offspring!
These activities lay the groundwork for a healthy financial relationship by instilling the values of saving, budgeting, earning, and making thoughtful financial decisions from an early age.
Starting Early: The Power of Seeds
Financial education is like planting seeds of wisdom. The earlier we sow them, the deeper the roots grow. As the adage goes, “mighty oaks from little acorns grow.” Simple lessons about saving, spending wisely, and understanding the value of money can be introduced even in the early years.
The Savings Jar – Start with a simple savings jar for each child. Teach them to allocate a portion of any money they receive into the jar. Discuss goals for the savings, whether it’s for a special toy or a future treat.
The Wish List – Create a wish list with your child, including items they desire. Discuss the concept of prioritising and saving for more significant items. Encourage them to revisit the list periodically, adjusting priorities as needed.
Going digital – cash was king, but now purchasing, buying habits even transferring money is all done online and with more and more banks shopping up shop and going completely digital perhaps setting up an online bank account and demonstrating that just because you don’t have physical cash doesn’t mean you need to rely on the plastic card.
Set your goal, save – then spend without any cash slipping through those fingers!
Age-Appropriate Lessons: Tailoring Wisdom
Adapt the lessons to the age of your child. For young children, start with tangible concepts like using piggy banks to save. As they grow, introduce budgeting for toys or treats. For teenagers, delve into more complex topics like loans and debts, preparing them for the financial decisions that await them.
Avoid the ‘satisfaction straight away’ stigma and teach the art of patience – wait for something, save up and then spend, don’t spend first with money you don’t have!
Budgeting Game – Develop a simple budgeting game where your child manages a hypothetical budget for a week. Allocate funds for various categories like toys, snacks, and savings. Discuss the outcomes, reinforcing the concept of making choices with limited resources.
Real-world Application: Learning by Doing
Children learn best by doing. Consider giving them an allowance and encouraging them to budget for items they desire. As they make choices, they grasp the concept of trade-offs and consequences. Real-world application transforms theoretical knowledge into practical wisdom.
Earning Allowance – Introduce the idea of earning money through chores or tasks, outside of their regular household duties. Think of these as little tasks you would get someone to do for you. Assign a monetary value to each task, allowing them to see the connection between effort and reward. Discuss the importance of work ethics and responsibility.
Open Conversations: Diminishing Financial Stigma
Create an open dialogue about money. Remove the stigma associated with financial discussions. Whether it’s a trip to the grocery store or planning a family vacation, involve your children in financial conversations. This demystifies money matters, fostering a healthy relationship with finances.
Grocery Shopping Adventure – Take your child grocery shopping and involve them in the process. Provide a small budget for a particular meal or snack. Encourage them to compare prices and make choices within the budget.
Utilise Resources: Tapping into Tools
In a digital age, educational resources are abundant. Utilise interactive online games, books, and educational apps that make learning about finances engaging. Many platforms provide age-appropriate content that transforms financial education into an enjoyable adventure.
Leading by Example: The Ripple Effect
Children emulate the behaviours they witness. Be a positive financial role model. Share stories of financial successes and challenges. Demonstrating responsible financial habits instils a lasting impact, shaping their own financial attitudes.
Role-Playing Purchases – Engage in role-playing scenarios where your child takes on the role of the buyer. Provide them with a set budget and guide them through making decisions. Emphasise the importance of critical thinking and making informed choices.
In a world where financial decisions impact every facet of life, instilling financial life skills in our children is an investment in their future. Remember, it’s never too early or too late to unlock the doors to financial wisdom for the next generation.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Your 2024 Comprehensive Guide To Off-the-Plan Finance For Australian Expatriates
Investing in off-the-plan properties can be an attractive option for Australian expatriates looking to secure a foothold in the Australian property market. However, navigating the finance landscape for such investments can be complex. Here’s what you need to know if you’re looking to invest in Australian Property as an Aussie expat and seeking finance for off-the-plan properties.
Understanding Off-the-Plan Finance for Australian properties
Off-the-plan finance refers to financing arrangements tailored specifically for properties that have yet to be constructed or completed. As an expatriate, it’s crucial to understand the unique financing challenges and opportunities associated with these types of investments.
Current Finance Landscape For Expatriates
In recent years, there have been significant changes in the finance landscape for Australian expatriates. Lenders have become more cautious due to regulatory changes and increased scrutiny on overseas income. Expats may encounter stricter lending criteria compared to resident borrowers.
Challenges Faced By Expatriate Borrowers
One of the main challenges faced by expatriate borrowers is proving income stability and affordability. Lenders may require additional documentation, such as employment contracts, tax returns, and bank statements, to verify income sources and assess repayment capacity. Moreover, fluctuations in foreign exchange rates can impact borrowing capacity and loan affordability.
Strategies To Overcome Financing Challenges
Aussie expatriates can employ various strategies, including:
Building a Strong Financial Profile
Maintaining a healthy credit history, saving for a larger deposit, and reducing debt can strengthen your financial profile and improve your chances of securing favourable financing terms.
Partnering with Specialist Mortgage Brokers
Engaging the services of experienced mortgage brokers who specialise in expatriate finance can provide invaluable support and access to a wide range of lenders. These brokers understand the unique needs of expatriate borrowers and can tailor solutions to suit individual circumstances.
Exploring Alternative Financing Options
Expatriates may explore alternative financing options, such as non-bank lenders or international banks with a presence in Australia. These institutions may offer more flexible lending criteria and competitive interest rates tailored to expatriate borrowers.
Seeking Professional Advice
Seeking advice from financial advisors, tax specialists, and legal professionals can help expatriates navigate the complexities of off-the-plan finance and ensure compliance with regulatory requirements.
Securing finance for off-the-plan properties as an Australian expatriate requires careful consideration of the current finance landscape, potential challenges, and available strategies. By staying informed, seeking expert advice, and partnering with specialist mortgage brokers, expatriates can overcome financing hurdles and successfully invest in off-the-plan properties in Australia.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Specialist Mortgage’s Top 8 Factors For 2024
Buying a property in Australia can be a significant milestone and a complex process that requires careful consideration of various factors. From navigating the property market to managing finances and legalities, there are numerous aspects to address to ensure a successful purchase. We’ve compiled our Top 9 factors you need to consider when buying Australian property, covering everything from market research to the settlement process.
1) Property market research
Conduct thorough research on the property market, including historical sales data, recent trends, and projected growth. Familiarise yourself with the local market conditions and property prices in the area you’re interested in. If it’s an investment property, rental data will also be important to analyse.
Will this be the property that you and your family be living in long term? If yes, and you have young or school aged children you might want to look at the local amenity of the suburb too – factor in local schools, transport hubs and accessibility, shopping centres and activities (parks and recreation) in the area.
2) Budget and affordability
Determine your budget and assess your financial capacity to purchase a property. Consider factors such as your income, savings, borrowing capacity, and any additional costs associated with buying a house, such as stamp duty, legal fees, and ongoing maintenance.
3) Government grants and incentives
Research and determine if you’re eligible for any government grants or incentives available to first-time home buyers or specific property types. These can provide financial assistance and help reduce the overall cost of buying a house. We are here to help you every step of the way and have access to all updated information and grants that you may apply for.
4) Financing options
Explore different financing options, including home loans from various lenders. Compare interest rates, loan terms, fees, and features to find the most suitable loan for your needs. Consult with your mortgage broker to help navigate the lending process. Ensure you get pre-approval before you start seriously searching for property to buy. Our team is happy to assist with getting the pre-approvals you need.
5) Contract of sale and legal advice
Seek legal advice from a licensed conveyancer or solicitor to review the contract of sale and ensure all legal obligations are met. They will can guide you through the legal aspects of the purchase, including title searches, property transfers, and any special conditions in the contract.
6) Building and pest inspections
Consider obtaining building and pest inspections to identify any hidden problems with the property, such as termite infestations or structural issues. These inspections can help protect your investment and potentially negotiate repairs or a price reduction.
7) Property insurance
Arrange property insurance to protect your investment against potential risks, such as fire, theft, or natural disasters. It’s important to have adequate coverage in place before settlement, you may have to consider house and contents insurance as well as landlord insurance for investment properties.
8) Settlement process
Understand the settlement process; this involves finalising the purchase and transferring of Australian Property ownership. Your nominated conveyancer or solicitor will ensure all necessary paperwork, payments, and contractual obligations are fulfilled on time.
Purchasing a property in Australia demands thorough research, meticulous planning, and careful attention to detail. By considering the key factors outlined above including market research, budgeting, financing options, inspections, legalities, insurance, government incentives, and the settlement process, you can navigate the property buying journey with confidence and make informed decisions that align with your goals and objectives. Whether you’re a first-time homebuyer or an experienced investor, being well-informed and proactive can help you achieve success in the Australian property market.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Congratulations Helen for being announced as one of five finalists in the running to win MFAA State Excellence Award for Residential Finance Broker WA 2024.
The awards ceremony will be held at Crown Perth Grand Ballroom on the evening of Thursday 13th June. The state winners will qualify for the MFAA National Excellence awards 2024 held in Melbourne in July.
The Specialist Mortgage team has had a winning start to 2024 with recognition in The Advisor Better Business Awards recently too.
Six Sydney property experts reveal the suburbs and property types real estate investors should be looking to buy in 2024.
The Sydney property market has undeniably become unaffordable to many, with a median dwelling value $300,000 above the next highest median, Canberra, and almost $400,000 above Melbourne’s.
But like all city property markets, it is a diverse real estate landscape with its mix of sour lemons and appetising fruit cocktails awaiting property investors.
Despite its wince-inducing median dwelling value of $1,139,375 the city as a whole last month still notched up another 0.3 per cent price uptick, according to CoreLogic.
With price trends still in the positive, some suburbs are still delivering the type of capital growth, complemented by high rental returns, that captures the attention of property investors.
Houses remain the preferred investment vehicle but unit prices have been outstripping houses in recent months.
PropTrack’s Senior Economist, Eleanor Creagh, on Friday (11 April) said that in Sydney, six of the top 10 suburbs where unit growth is outpacing house price growth this year are in the Inner West, Inner South West, or City and Inner South, namely Dulwich Hill, Mortdale, Rozelle, Bexley, Balmain and Petersham.
Of all the suburbs in Australia, the house price premium over units is the most extreme in Clontarf, Queens Park, Bellevue Hill, and Vaucluse, in Sydney’s Northern Beaches and Eastern Suburbs. In these suburbs, houses can cost almost 10 times as much as units, with the difference in value ranging from $3 to $8 million.
So where should property investors turn their attention in Sydney?
Six property experts spoke to API Magazine and shared their thoughts on the suburbs that offered the best prospects for medium-term return on investment.
From the top end of town to more affordable outskirt suburbs, here are the suburbs they think will have investors sipping cocktails on the beach in the future.
Sydney’s 2024 Property Investment Hotspots
Aaron Downie, founder and buyers agent, Mackenzie Property Group
The East, Lower North Shore, and Northern Beaches could potentially see above-average capital growth
Suburbs like Coogee, Neutral Bay and Curl Curl really stand out. These areas, with median house values in the $3m to $4 million range, are known for their quality of life, access to amenities and strong demand from families, professionals and investors, which may drive property values up.
I anticipate units to continue outperforming in the Sydney market, driven by an upturn of investor interest, as well as by downsizers and those preferring the lifestyle Sydney offers over relocation alternatives.
Allen Habbouchi, Head of Project Sales & Distribution, aussieproperty.com
Sydney’s top three suburbs likely to keep delivering stronger than normal trends are Coogee, Kingsford and Kensington.
This is mainly due to their strategic positioning within 10km of the CBD, university campuses, beaches and infrastructure.
Two of our commentators named Coogee as a suburb worthy of property investor attention.
They offer lifestyle and investment opportunities to residents and investors alike.
Ultimately these factors could potentially contribute to deliver stronger than expected growth for houses and units.
Locations like Liverpool and Campbelltown are already seeing 17 per cent annual increases in searches and this renewed interest will flow on to higher prices with the increased demand.
Much of the outperformance of the luxury end of the market has been due to the immunity of that segment to interest rate rises compared to the lower quartile. With the rate cuts now priced into rate market into the end of the year and start of 2025, we expect some of the serviceability constraints and buffers to ease.
Five Dock is also a suburb seeing a lot higher search volumes, in Sydney’s Inner west, where the Sydney Metro West project station is underway, which will enhance its already good transport links. It is close to the CBD and is relatively affordability compared to other nearby locations.
The Agency, CEO of Real Estate, Matt Lahood
Sydney’s price trajectory is slowing due to high interest rates and people having less disposable income. People don’t have the borrowing power of previous years, which is reducing the rate of growth.
The most likely places to resist this price pressure are Alexandria, Burwood and, on the Central Coast, Kincumber.
Liam Carmody, General Manager, Palise Property
Despite the significant median price difference compared to other capital cities, outer suburbs in Sydney may not necessarily be the best performing.
This can be attributed to various factors, including infrastructure, amenities, employment opportunities and lifestyle preferences.
Inner suburbs often offer better access to amenities and employment hubs, attracting higher-income individuals willing to pay premium prices.
Additionally, limited supply and high demand in inner suburbs contribute to price growth. In contrast, outer suburbs may have more affordable housing but lack the same level of amenities and infrastructure, resulting in comparatively slower price growth.
Three suburbs positioned to deliver stronger than trend capital growth this year could include:
Surry Hills: An inner-city suburb experiencing gentrification and attracting young professionals and investors.
Marrickville: Known for its cultural diversity and vibrant lifestyle, with ongoing development projects driving demand.
Parramatta: Sydney’s second CBD undergoing significant infrastructure improvements and development, and offering investment opportunities.
Julian Khursigara, Partner, Search Party Property
We would expect demand for units to remain particularly strong in metro areas as affordability issues persist and investor interest picks up throughout the year.
Some recent industry surveys have indicated a growing trend of families opting to downsize in Sydney.
Along with seasoned Sydney investors returning to the market, this is probably another reason for the recent exuberance for units and townhouses.
By comparison, interstate investor attention is largely focused elsewhere, and first home buyers are also finding it increasingly difficult to break into the Sydney market.
Six property experts interviewed by API Magazine identified a range of suburbs where property prices were expected to deliver strong capital growth, ranging from affluent coastal areas like Coogee to outer suburban Endagine.
What is the median property price in Sydney?
Despite its wince-inducing median dwelling value of $1,139,375 the city as a whole last month still notched up another 0.3 per cent price uptick, according to CoreLogic.
Our Top tips to slash that mortgage in 2024
From cutting years off the length of a mortgage to maximising rental income, these seven tips highlight how there is much more to a good property manager than collecting rent and doing property inspections.
If you’re one of the 2.2 million Australians who own an investment property, cash flow is the priority.
With an estimated 80 per cent of Australian property investors employing the services of a professional property manager, your property manager should be one of the key professionals who help improve your cash flow.
While most property investors look to their accountant to help improve the cash flow of their investment property, they often forget the value a professional property manager can bring to a property’s cash flow.
Here are seven strategies your property manager can implement to improve your cash flow:
1. Optimise rent disbursement frequency
Consider the benefits of more frequent rent disbursements.
While monthly payments are common with most property managers, switching to weekly disbursements can save you on interest costs, if you match your mortgage repayments accordingly.
For example: If you consider a loan amount of $500,000, with an interest rate of 6.6 per cent, paying principal and interest on a 30-year loan term, the savings can become obvious.
Swapping from monthly mortgage payments of $3213 to weekly mortgage payments of $803, the interest savings over the 30 years could be up to $163,730 (or reducing the loan term by six years, five months).
By aligning rent disbursements with your mortgage repayment schedule, you can effectively reduce interest expenses and improve your cash flow.
2. Maximise rental income
By staying informed about market trends and conducting regular rent reviews, property managers can ensure income is not left on the table.
Many places haves generated weekly rent increases of up to $200, highlighting the potential for significant income growth.
Property managers will, of course, be bound by any state’s legislation regarding rent increases.
3. Minimise vacancy periods
Vacant periods can have a significant impact on cash flow.
A property manager should manage lease renewals and minimise downtime between tenancies.
Furthermore, your property manager can implement targeted marketing campaigns and utilise online platforms to attract prospective tenants quickly, reducing vacancy periods and optimising your cash flow.
4. Reimbursing water consumption charge
Ensure that all allowable water consumption charges are passed on to tenants.
Whether your property is new or old, your property manager can implement systems to accurately track and bill tenants for water usage, helping to offset your expenses.
In some areas, strata title properties don’t issue individual property consumption information, and this can impact your ability to seek reimbursement of water consumption from your tenants.
5. Fair pricing from tradespeople
Qualified tradespeople are essential for maintaining your property, but their costs can vary.
Your property manager can leverage their network of trusted professionals to ensure fair pricing for maintenance and repairs, preventing overcharging and minimising expenses.
Additionally, your property manager can obtain multiple quotes for larger projects and negotiate favourable rates on your behalf, ensuring cost-effective maintenance solutions without compromising on quality.
6. Implement preventative maintenance programs
Proactive maintenance can prevent small issues from escalating into costly repairs.
By scheduling regular inspections and addressing maintenance issues promptly, your property manager can help you avoid unexpected expenses and preserve your property’s value.
Additionally, a property manager can develop customised maintenance schedules tailored to your property’s specific needs, addressing potential issues before they impact tenant satisfaction and annual rental yield.
7. Manage insurance claims efficiently
In the event of an insurance claim, your property manager should be experienced in managing these claims, which can facilitate a swift resolution.
Their expertise in property management and established relationships with insurers and local tradespeople can expedite the claims process, ensuring minimal disruption to cash flow.
Your property manager can document and report property damage promptly, liaise with insurance adjusters on your behalf, and oversee repairs to ensure timely completion and reimbursement. By efficiently managing insurance claims, your property manager can safeguard your investment and maintain uninterrupted cash flow.
Article Q&A
Should I use a property manager for my investment property?
A property manager can help optimise rental income, minimise expenses and ensure a steady stream of revenue, even slashing years off the duration of a mortgage by optimising rent disbursement frequency.
Our Top 5 2024 Tips For Accessing If Its Time For An Update To Your Home Loan.
Refinancing a home loan can offer financial benefits, such as lower interest rates, improved loan terms, or access to additional funds. However, deciding when to refinance requires careful consideration of various factors.
1) The Interest Rate Environment
One key factor to consider when contemplating refinancing is the prevailing interest rate environment. If interest rates have significantly dropped since your initial loan, it may be a good time to refinance. By securing a lower interest rate, homeowners can potentially reduce their monthly repayments and save money over the life of the loan.
2) Better credit.
If your creditworthiness has improved since obtaining your original loan, you may qualify for better loan terms and interest rates. Factors such as an improved credit score, increased income, or reduced debt can positively impact your eligibility for more favourable refinancing options if you have gone with a non-banking lender.
3) Changing Financial Goals.
Changing financial goals can also prompt refinancing. For instance, if you wish to consolidate multiple debts, such as credit cards or personal loans, into a single mortgage with a lower interest rate, refinancing can provide a solution. Additionally, if you want to access the equity in your home for home improvements or investments, refinancing may be a viable option.
4) Flexibility and options.
Refinancing allows homeowners to reassess their loan features and seek more flexibility. If your current loan lacks desirable features, such as an offset account, redraw facility, or the ability to make extra repayments, refinancing can help you secure a loan that aligns with your preferences and financial needs.
It can also provide an opportunity to review the fees and charges associated with your current loan. Evaluate the costs of refinancing, such as application fees, valuation fees, and legal fees, against the potential savings or benefits gained from the new loan. It’s important to carefully compare the costs and benefits to ensure that the overall financial outcome is actually a positive one.
Keep an eye out for the cash back incentives that some banks offer, these can cover the costs of the refinance and sweeten the deal with some of the bonus left over. Your mortgage broker will be able to assist in comparing the best deals for you when it is time to refinance.
5) Loan structure.
If you currently have a fixed-rate loan and interest rates have fallen significantly, or have a variable-rate loan and interest rates have increased or predicted to rise, refinancing to a different structured loan could be advantageous. However, be aware of potential break fees associated with terminating a fixed-rate loan prematurely & the break fees alongside potential savings to determine if refinancing is economically beneficial in your situation.
You can quickly weigh the costs of breaking the fixed term by simply reaching out to the bank and asking them what the break cost of the fixed loan is. They should be able to give you an answer on the spot.
How can Specialist Mortgage Assist You?
Seeking advice from mortgage professionals can provide valuable insights and guidance in determining the optimal time to refinance. At Specialist Mortgage our brokers can help assess your financial situation, analyse loan options, and recommend the most suitable refinancing strategy based on your individual circumstances and goals.
Deciding when to refinance requires careful evaluation of various factors. Monitoring the interest rate environment, assessing improved creditworthiness, changing financial goals, and reviewing loan features and fees & weighing the costs and benefits are crucial considerations, especially when purchasing Australian property or applying for an Australian home loan as a expat.
By understanding the appropriate circumstances and conducting thorough research, individuals can take advantage of refinancing opportunities to achieve their financial objectives and potentially save money over the long term.
Is it time for a refinance? Still unsure? Touch base today and we’ll do a deep dive into your situation and see if it’s worth it.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Our Top 10 Suburbs To Watch In 2024
Perth property prices are soaring but investors are contending with the high prices by searching out smaller properties such as villas and select hotspot suburbs.
Perth’s red hot property market has many feeling as if they’ve missed a generational period of price growth.
East Coast buyers agents are overinflating price tags for eager eastern states buyers, first home buyers desperate to escape the nation’s most stressed rental market are pushing prices at the lower end of the market through the roof, and villas, flats and townhouses are being embraced like never before.
In a rapidly rising market it can be difficult to ascertain true value.
Perth property overall, already the fastest growing market in the country, is forecast to rise at least another 10 per cent this year, on the back of 18.3 per cent growth in the 12 months to the end of February.
Some investors are now asking if the market is still delivering investment potential when competitive buyers are outbidding each other on listed prices by 10 per cent or more.
With that 10 per cent get-in-the-game increment potentially erasing a year’s growth, and stamp duty and other transaction and settlement costs, where does long term value lie?
Supply, a strong economy and population growth remain the key drivers of Perth’s market.
But if global economic and geopolitical factors were to quell the current high levels of demand and persistent global inflation continued to keep interest rates locked in, investors could feasibly be looking at lengthier times to recoup their investment.
Top 10 Unit And House Suburbs For Price Growth
Whether its location, price range or property type, there are sectors of the market that are in greater demand than others and with resilient prospects going forward.
Most of the action is in the upper and lower portions of the market in terms of price, with outer suburban houses in the $400,000 to $550,000 price range experiencing annual price growth of more than 25 per cent, while suburbs in the $1.1 million to $1.4 million range are moving at that same rate of knots.
TOP SUBURBS BY ANNUAL CHANGE IN MEDIAN HOUSE PRICE
Price growth in the year to February 2024 (28 or more annual sales; <1HA) Source: REIWA.
Villas and townhouses are fairly similar to houses. They may not be set on their own block, but they often come with some land, usually in the form of private courtyards, and the low-maintenance aspect also appeals to buyers.
“There is often talk about density in Perth and these stats show buyers are quite willing to embrace medium density living, we just need to build more of these types of homes and in locations where buyers want to live,” Ms Hart said.
Within six kilometres of the Perth city centre, two-bedroom apartments such as this one in The Crest Burswood for around $700,000.
The growth in the median sale price for flats reflected their affordability.
“Flats are often a great way for first home buyers to enter the market,” she said.
“They also offer good value for investors.”
Units are now selling 13 days faster than they did a year ago.
The growing demand for units is seeing prices start to rise at a greater rate. The median unit sale price increased 1.2 per cent in January and was 3.8 per cent higher year-on-year.
The median house sale price rose 0.8 per cent to $605,000 over the month. This was 10 per cent higher than February 2023.
Perth’s Hotspots That Could Outperform Market
Perth owner occupiers have an appetite for landed property, more so than owner occupiers on the East Coast who have become accustomed to unit living just to be closer to the city centres.
Julie Kelley, Global Sales and Marketing Manager for aussieproperty.com, said a trend was emerging of buyers compromising to be within 10 kilometres of the CBD and shifting their search to townhouses, villas and apartments.
For investors this can be favourable as there is often less maintenance, higher rental yields and lower vacancy rates, in addition to a lower purchase price and reduced stamp duty.
Homes such as this four-bedroom Canning Vale property on a block of 756 square metres is available are available just 17 kilometres from the city.
In Burswood, for example in the The Crest development, and Como, buyers can purchase a two-bed, two-bath, two-car apartment in a complex with resort-style facilities in the $660,000-$770,000 bracket.
When it comes to houses, Ms Kelley said many buyers with a budget of $1 million or less and wanting a large four-bed, two-bath, two-car family home on a good-sized block are expanding their searches to beyond 20 kilometres of the CBD.
“They are well established suburbs, with good amenities and schools, lovely parks and a great sense of community.
“The houses in these suburbs were typically built as house and land packages in well-designed leafy estates from the 1990s into the 2020s, with land releases and new builds continuing even now.”
Buyers with similar budgets and goals looking for homes north of the river and content to settle outside a 20 kilometre range from the CBD, were making houses in suburbs such as Hamersley, Greenwood, Kingsley and Darch highly sought after assets.
Supply Crunch To Linger Despite Government Efforts
Driving the Perth market is an unprecedented housing shortage, with supply and demand disparities at historic levels.
Source: REIWA/Momentum Wealth Research
In response, the Western Australian government has launched initiatives such as the Builders’ Support Facility (BSF), applications for which opened on Monday (11 March), to help boost supply.
Western Australia’s population increased 3.1 per cent in the year leading up to June 2023, the highest growth rate nationwide.
Peter Gavalas, a buyer’s agent from Resolve Property Solutions, said this has far outstripped housing supply, which has been plagued with low completions and dwindling approvals.
“Initiatives like the BSF facility are a positive step but don’t fully address the underlying issues affecting Perth’s housing supply, and as a result Perth’s property prices and rents are likely to continue rising, adding yet more pressure on potential homebuyers and tenants.
“Perth’s property market is in dire straits.”
According to recent REIWA data, the number of listings for sale across Perth plummeted to a record low of 3,648 at the end of December, marking a 23.4 per cent drop from November and a staggering 49.0 per cent decline compared to December 2022.
“The gap between the number of homes available and the number of people wanting them has never been wider, fuelling intense competition among buyers and driving up prices,” Mr Gavalas said.
“Meanwhile, homes are flying off the market, with houses selling in just 10 days on average.”
Article Q&A
Where are property prices growing fastest in Australia?
Perth property overall, already the fastest growing market in the country, is forecast to rise at least another 10 per cent this year, on the back of 18.3 per cent growth in the 12 months to the end of February.
Should property investors buy in Perth?
Some investors are now asking if the market is still delivering investment potential. API Magazine identifies the property types and suburbs best placed to deliver investor returns in 2024 and beyond.
Why are Perth property prices rising so fast?
Supply, a strong economy and population growth remain the key drivers of Perth’s market.
Where are property prices rising fastest in Perth?
As these API Magazine top ten lists show, most of the Perth property action is in the upper and lower portions of the market in terms of price, with outer suburban houses in the $400,000 to $550,000 price range experiencing annual price growth of more than 25 per cent, while suburbs in the $1.1 million to $1.4 million range are moving at that same rate of knots.
Twenty members of the Western Australian broking industry including our very own Helen Avis have been declared as winners at the Better Business Awards 2024 held on Thursday night (29 February) at the Hyatt Regency, Perth.
With a multi-generational client base that now includes the children of her original property buyers, Specialist Mortgage Director, Helen Avis, has taken out the title as Western Australia’s Best Finance Broker 2024 at The Adviser Better Business Awards.
At the event held at the Hyatt Regency Perth, Specialist Mortgage was also named as Best Customer Service (Office) Finalist, while Ms Avis was additionally a finalist in the Best Residential Broker and Broker of the Year categories.
The state-based awards, sponsored by principal partner NAB, celebrated talent from the mortgage and finance industry, with hundreds of colleagues and peers in attendance at the black tie ceremony.
Ms Avis said her experience in the industry was borne home to her by a recent client trend she had noticed.
“I have been doing this for so long I am now doing loans for my clients’ kids as they move into the first home owner market.
“Providing service to existing clients and the subsequent client referrals keeps me busy and it’s a cumulative effect that keeps delivering added momentum to our business.”
“I am still doing a lot of expatriate lending, but also as our clients move back to Australia I’m now sourcing and processing a lot of loans for our clients in Australia, whether for a home or an investment.”
Ms Avis expected the rest of 2024 and into 2025 to be buoyant times for the national property market.
“I think most clients are expecting a rate cut later this year, so there is already anticipation of this.
“Buyer demand is still strong and there is a shortage of stock, so we expect real estate markets to remain upbeat.”
Ms Avis said she would encourage clients to refinance if their banks wouldn’t consider a better deal on their home loans.
“Refinancing is mixed at the moment, with some banks willing to offer pricing to keep clients, but others won’t, so for those clients we will look at refinancing.”
SMATS Group, of which Specialist Mortgage is a part, are international market leaders in providing Australian taxation, finance, property, foreign exchange and migration services to Australian expatriates, foreign investors and intended migrants.
