Investors cross the Nullarbor!

Investors cross the Nullarbor! 01/08/2017

At a recent property information evening, Rod Davidson, National Director of well respected Australia wide valuation firm, LMW Advisory, shared his insights into the current Perth market, and specifically the direction it is heading.
Among his observations being words of warning about the ‘overheated’  Sydney market with the strong possibility of it stalling and repeating its trend of the year 2000.
“When Sydney came off the boil after the last boom, investor money flowed across the Nullarbor to Perth, which was very flat in early 2000”. He continued to say “The same pattern is emerging now with Eastern State investors looking to the Perth market which still currently represents some excellent buying opportunities”.
This has most definitely been the case here at RRE with around 15% of all property enquiries being from Eastern States based buyers.

Mr Davidson also continued on to say that the average portion of household income to service a Sydney property loan was 44.5% whilst Perth’s was 29.4% and interestingly weekly household incomes being equal to the two cities. He also pointed out that as per the diagram above, the Sydney market is sitting somewhere in the realm of uncertainty (anxiety) meaning that it has no where to go but downward. Conversely, the Perth market was on the upward trend with no where to go but UP! Furthermore, as the graph clearly depicts out, savvy investors don’t wait until the ‘excitement-thrill’ sector to buy…. They get in way before the prices rise.


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