How can I speak with Capital Property Advisory?
You can request a complimentary consultation with a CPA adviser to discuss your property goals and next steps.
CAPITAL PROPERTY ADVISORY | NATIONAL BUYER'S AGENCY
Why The Value Of Your Home Won’t Drop Over The Next Year
Why The Value Of Your Home Won’t Drop Over The Next Year 18 August 2022 Matthew Hughes Article by: Kim Macdonald, Journalist Source: The West Australian August 18, 2022 As this newspaper’s property editor with a close eye on the market, I disagree with east coast economists about their increasingly gloomy predictions for WA real estate. A recent hysterical prediction by ANZ Bank claims Perth property prices will fall 13 per cent over the next year, swiping $70,000 from the median priced home. In my view, Perth property prices will stagnate over the next year, rather than fall. And there are two very big reasons for this. Let’s call them demand and supply. Firstly, demand for housing in Perth is strong, shown in part by having the highest rents relative to property values in the country. As independent property forecaster Gavin Hegney has long explained, high rents affect every property, because they act like an insurance policy underpinning market values. High rents encourage renters to buy their own home, because a mortgage doesn’t cost too much more than a lease. This boosts entry-level demand. From the landlord’s perspective, high rents improve profitability. Not only does it he
Article by: Kim Macdonald Source: The West Australian August 18 2022. In my view, Perth property prices will stagnate over the next year.