Western Australia Housing Affordability

Housing Affordability in Western Australia

Throughout the last 3 months of 2014, the median house price across Australian capital cities rose 1.9%. However, following the Reserve Bank’s decision earlier this month to drop the cash rate interest rates are at an all-time low and it is fair to say that now is still an opportune time to purchase property in Western Australia.

Figures published by the Australian Bureau of Statistics are a clear indication of the strength and dominance of the WA property market. Recent ABS reports show that the one million houses in the state have a collective value of a huge $600 billion; this is strong evidence of investment opportunity and return on investment in the state’s property market.

There is no doubt that things are changing in the WA market, but should this be deterrence to potential buyers? We think not.

Recent reports conducted by one of the state’s leading mortgage advisors show that satisfaction with housing affordability is high, with the majority of Australian consumers prefer variable interest rates as oppose to fixed. Additionally, property prices in many areas remain reasonable and affordable.

Much of the dissatisfaction with housing affordability in WA stems from the rental division as renting a property has become less affordable. In response to this the state has offered an innovative solution to help potential buyers achieve their goals of home ownership.

The shared home ownership scheme involves the buyer sharing up to 30% of the property purchase price with the department of housing and then borrowing the remaining funds from a large state mortgage lender. The scheme is aimed at assisting low income households in owning their own home.

The rise in house prices should not be cause for doubt amongst potential buyers. The state currently has the highest number of new available lots in six years (great news for those hoping to build their own home) and established property prices in many areas remain within the affordability of the average household. Interest rates are at an all-time low and credit lenders and government departments are working hard to offer consumers achievable avenues into owning their own home.

If buying a new home is something you have been considering lately we strongly urge you to contact Iconic Home Loans and talk to one of our experienced finance brokers. Whether you are buying your first home or purchasing an investment property, Iconic brokers have the tools and knowledge to help find you the best financial solution.

Reviewing and refinancing your current mortgage are two things that are also worth considering at this time. The financial solution put in place for you when you began your mortgage may be costing you more than necessary. Reviewing your loan and assessing whether there is a better product available for you now could literally save you thousands of dollars on interest and repayments.

To take advantage of this time and establish a stable and strong position in the WA property market, please contact Iconic Home Loans today on 1300 663 943.