Investors, so where the bloody hell are you?
Remember the Lara Bingle advertisement for Tourism Australia a few years back? Well it’s now time to put the call out for local, long term, property investors to consider entering the Perth property market.
What is holding our “local” investors back at present?
- Is it the high vacancy rate?
- Is it the reduction in rent prices?
- Is it the lack of any meaningful capital gains over the past 9 years?
- Is it the fear of interest rates rising?
- Is it the fear that perhaps prices are going to continue to fall?
What made investors buy at the peak of the market in 2007/2008 when stock numbers were right down (limited choice), yields were low and interest rates high (comparatively speaking)? I suggest it was perhaps confidence, momentum in the market and possibly the fear of missing out.
Are you a potential “local” investor that might be inspired to take action if we could assist with the following:
- Reduce or eliminate the risk of any vacancy over the next 2 to 3 years?
- Ensure a good rental yield for the next 2 to 3 years?
- Lock in a competitive interest rate for the next 3 to 5 years?
- Demonstrate value by showing you how you are buying below replacement cost?
- Find properties located adjacent to significant infrastructure projects already commenced or nearing completion that are going to make the locations much better places to live. i.e. increase demand?
Did you know that overseas and interstate investors have already started turning up and they can’t believe what good value they are finding, comparatively speaking. How do I know this? Well we have been beaten at the last four development site auctions we have attended by the same Overseas/Interstate Buyers. This has started at development site stage but it won’t be long before that spreads to every day homes across Perth suburbs, particularly suburbs close to the city, river, ocean and good amenities including public transport, shops, restaurants, etc. As the East Coast market cools investors will turn their attention elsewhere. You see us “locals” are still a little shell shocked by the performance of the property market in recent years and we are waning in terms of our confidence that the market will rebound. Investors in other better performing areas have been surrounded by positivity, some would have done very well, some would have missed out. These investors are coming our way and are probably more likely to commit ahead of local buyers.
Some of the best opportunities haven’t even been released in the public domain so if you are one of many nervous “local” investors sitting on the fence right now and would like to find out more about what’s available and how we can help answer the above 5 questions, then please don’t wait until your “Uber” driver confirms the next property market upturn has arrived… give me a ring and let me buy you a coffee.
All the very best.
Kind Regards
Richard Pappas, Managing Director