CoreLogic National housing Update August 2017
August Market Outlook
Where is renting most common? by CoreLogic
RBA takes a more positive stance
New depreciation rules affect property investors
Adelaide August 2017
Brisbane August 2017
Cairns August 2017
Canberra August 2017
Darwin August 2017
Gold Coast August 2017
Melbourne August 2017
Newcastle August 2017
Perth August 2017
Regional NSW August 2017
Regional NT August 2017
Regional QLD August 2017
Regional SA August 2017
Regional VIC August 2017
South West WA August 2017
Sydney August 2017
Tasmania August 2017
Wollongong August 2017
CoreLogic NSW housing Update August 2017
CoreLogic QLD housing Update August 2017
CoreLogic SA housing Update August 2017
CoreLogic VIC housing Update August 2017
CoreLogic WA housing Update August 2017
How a mortgage broker can help with your move
Government schemes to help you buy your first home
How do construction loans work?
South West WA August 2017
The month in review: South West WA
By Herron Todd White
Investors in the south west tend to be directly competing with first home buyers at the lower end of the market i.e. the $350,000 to $500,000 price bracket. They tend to be more active in the new housing market within major developments such as Treendale, Dalyellup, Provence, Vasse and Brookfield. Rents remain relatively high historically offering yields of between 4% and 5.5%.
A growth area for investors is smaller homes on cottage size blocks which are more affordable and have less maintenance of lawns and gardens. They are however also competing in this section with the retiree purchasers also looking to downsize with lock and leave style properties.
There has been some developments associated with the National Rental Affordability Scheme (NRAS) which have attracted investors with dual key properties which provide good rental returns however the entry cost on a house and land development basis are at the upper end of the value range.
There is a definite lack of affordable rental properties in the region particularly in smaller 2- and 3-bedroom, 1-bathroom dwellings or units for which there is strong demand. However this is a section of the market that investors appear reticent to enter. These would also prove affordable alternatives for first home buyers.
In short investors are still active in the south west market albeit predominantly at the lower end of the new housing market.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.