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Tenant hotspots: WA’s 10 top searched suburbs for rentals revealed

Reiwa.com’s latest search result data has revealed the 10 suburbs and regional towns most popular with West Australian tenants looking for a rental home over the last 12 months.
REIWA President Damian Collins said the list was quite diverse, as it featured seven suburbs from within the Perth region and three regional towns.

“The list is also quite varied in terms of population. While we would expect to see suburbs with larger numbers of properties in areas like Baldivis and Canning Vale return high search volumes, a number of the suburbs on the list that ranked well have fewer than 10,000 people residing in the area.

“Of course, areas like Mandurah, Geraldton, Bunbury and Kalgoorlie also represent a broader urban area which has likely contributed to their popularity with WA tenants.

“Overall, the suburbs south of Perth proved most popular with WA tenants, with Mandurah, Rockingham and Baldivis ranking first, second and third respectively for searches. Geraldton and Bunbury in regional WA followed closely, rounding out the top five,” Mr Collins said.

Joondalup, Scarborough, Kalgoorlie, Ellenbrook and Canning Vale completed the list.

reiwa.com data shows nine of the 10 suburbs on the list experienced declines to the number of properties available for rent in their respective areas over the last year, with Mandurah, Canning Vale and Bunbury recording the most significant reductions.

“When there is increased interest in a suburb and fewer rentals available, this leads to stronger competition between tenants. While overall rent prices in Perth have been stable for a while now, there are some pockets that are starting to see prices rise,” Mr Collins said.

“From the list, Baldivis, Geraldton, Scarborough and Canning Vale all experienced increases in median rent over the last year, with their individual rent prices lifting by $10, $5, $18 and $10 respectively.

Landlords also found it quicker to find tenants in these areas, with reiwa.com data showing nine of the 10 suburbs saw their average leasing times improve during the last year.

“Canning Vale (39 days) and Joondalup (45 days) had the most notable decline in leasing times, with each experiencing a reduction of 11 days during the year, followed by Baldivis (41 days), Geraldton (57 days) and Scarborough (39 days), which reduced by 10 days each. Bunbury was the only area on the list to not record an improvement in average leasing time,” Mr Collins said.

“These 10 areas clearly hold a lot of appeal for West Aussie tenants. If you’re an investor looking to buy, I’d recommend speaking to a real estate agent about how these local markets are performing and what investment opportunities are available.”

Perth Market Snapshot for the week ending 10 March

  1. 2019

Housing affordability declined in WA in the December 2018 quarter, according to the latest findings from the Real Estate Institute of Australia and Adelaide Bank Housing Affordability Report.

Residential sales market

The December 2018 quarter Housing Affordability Report found West Australians were using up a greater proportion of their income to meet loan repayments, with the figure increasing from 22.5 per cent in the September 2018 quarter to 23.1 per cent in the December 2018 quarter.

On an annual basis housing affordability in WA has improved, having decreased 0.8 per cent when compared to the December 2017 quarter.

There were 7.6 per cent more loans taken out in the December 2018 quarter than in the September 2018 quarter, according to the report, with a total of 11,017 loans (excluding refinancing) recorded for the quarter. Although this figure is an improvement on the September 2018 quarter, it is down 6.2 per cent compared to the December 2018 quarter.

The average loan size increased in WA during the December 2018 quarter, up 1.2 per cent to $340,515 compared to the December 2018 quarter. On an annual basis, the average loan size has declined by 3.5 per cent.

First home buyers

First home buyer activity increased 6.7 per cent in WA during the December quarter, with 3,833 new property owners recorded, however this figure is down 4.1 per cent compared to the December 2017 quarter.

First home buyers make up 34.8 per cent of the state’s owner-occupier market (the largest percentage in the country!) and represent 13.2 per cent of all first home buyers in Australia.

The average loan to first home buyers increased by 0.9 per cent to $306,850 during the quarter, and decreased 2.9 per cent compared to the December 2017 quarter.

Rental market

Rental affordability has declined in Western Australia, with the proportion of income required to meet the median rent now sitting at 16.6 per cent, an increase of 0.5 per cent during the quarter and 0.2 per cent over the year.

WA’s top searched suburbs for sale revealed

reiwa.com’s latest search result data has revealed the 10 suburbs most popular with WA property seekers looking to buy in the last 12 months.
REIWA President Damian Collins said nine of the 10 suburbs on the list were in the Perth region, with Denmark the only regional suburb to make the list.

“Hillarys was the most popular suburb for West Australians searching for property, taking out first spot on the list, followed by Denmark, Woodvale, Duncraig and Canning Vale.

“Overall, it’s quite an eclectic list of suburbs, with a good supply from both north and south of the river and quite varied in terms of population levels. While it’s no surprise a suburb like Canning Vale has trended highly, given it’s one of WA’s biggest suburbs, it’s interesting to note that six of the 10 suburbs have fewer than 10,000 people residing in the area.

“Denmark in the Great Southern region has proven very popular with prospective buyers for example, ranking second on the list, which is quite remarkable given it has a population of just 2,600. Denmark has a lot of lifestyle appeal, especially with those seeking a sea-tree change. It seems many West Australians are turning to the internet to learn more about Denmark and find out what kind of properties are available in the area,” Mr Collins said.

The biggest trend in terms of lifestyle appears to be the push towards coastal suburbs, with six of the 10 top searched suburbs well-known for their proximity to WA’s great beaches.

“In particular, the northern coastal suburbs were popular, with Hillarys, Iluka, Sorrento and Mindarie all rating highly with WA property seekers,” Mr Collins said.

Of the 10 suburbs to make the list, reiwa.com data shows eight have median house prices above the Perth median of $510,000.

“This suggests it’s the trade-up sector of the WA market who are most actively searching for property right now,” Mr Collins said.

“While sales activity across Perth remains subdued, the high levels of interest from prospective buyers in these suburbs should provide local sellers with some confidence.

“These areas are clearly striking a chord with WA property seekers, so there is excellent opportunity for sellers to take advantage of this interest. My advice is to listen to your real estate agent and price your property in-line with market expectations to ensure your home stands out.”

Why the first property you buy is the most important of all

Buying property will undeniably be the largest and potentially, the most profitable investment you make.

Your first home is what gets you on the property ladder and can either set you up for the future or hold you back from your long term dream property.

For some, your first home will not be the one you raise your family in, but it is another step in the right direction and if you make the right decisions with your first house, you will be able to secure your ideal family home in an area you love.

Generally speaking, it is natural to have emotions running high when you make that first purchase, as the house hunting and finance process can be exhausting. Try to avoid this by taking your time to research, seek professional advice and make a decision based on your budget and lifestyle goals.

Months, even years of savings could all be sacrificed for a property you buy that loses you money. Alternatively, a clever first purchase that grows in value could leave you never having to save money again for a deposit on your next home.

REIWA President Damian Collins said the first home you buy is the most important because its capital growth is how you create equity to be able to afford to trade up to the next home.

“Most people buy at the lower end of the property market for their first home and through their lives, many move into higher price brackets as their family and income grow,” Mr Collins said.

The first step to achieving your house goals is saving a deposit for your first property purchase. How much you save can ultimately affect what, where and when you buy, as well as how much you are able to borrow from the bank. All of these factors will point to you being ready or not to buy a property that will give you the best first start in the property market.

Think long term, not just about the appeal of the property today. The best way to set yourself up is through your first home purchase, this again comes back to ensuring your first property is a smart investment decision.

“Quite often existing homes that are a little older in established suburbs grow in value more than brand new homes in the outer suburbs. It’s nice to have everything brand new, but remember, the first property is the stepping stone to your dream home,” Mr Collins said.

It is important to consider your long term goals, as many people strive to raise their families in nice communities close to schools, parks and recreational facilities. Get yourself used to the locations you like living in and where you can see yourself raise your children or if you plan to in the future.

A good handyman is hard to get. I got a good one

Gino is a retired builder who is passing his time fixing things for other people.

He is great!

Clean

Professional

Reliable

And reasonable!

Need one?

Contact me and ask for Gino

What economists predict for Australian house prices in 2019

In the middle of last year, several top economists were predicting house prices to in fact increase in 2018 – one forecasting as much as nine per cent, but since then house prices have experienced their largest and longest peak to trough decline in recent history spurred on by increased housing affordability constraints, a banking royal commission with a microscope on lending standards, and APRA’s restrictions on new investor loans.

Now that the price falls are well and truly in motion, all five economists recently surveyed by The Australian Financial Review forecast national house values would continue to drop in 2019, with Sydney, the epicentre of the downturn, dragging down the national average.

Stephen Koukoulas, of Market Economics, was most downbeat about the state of the property market, with expectations prices would fall in Sydney between 7.5 per cent and 10 per cent in 2019 after a drop of 7.5 per cent in 2018.

Nationally, he predicted house prices would fall by between five per cent and 7.5 per cent.

“From the 3rd quarter in 2019, I am forecasting some stability in prices as supply and demand forces underpin new activity,” Mr Koukoulas said.

By then he expected cashed-up first-home buyers would be lining up to take advantage of increased levels of affordability.

A key consideration for Geordan Murray, HIA acting principal economist, is that while population growth is slowing, it remains strong and will ensure ongoing demand for housing throughout the cycle.

“The labour market has been improving and is projected to continue to do so. This should contribute to further modest improvements in wage growth,” Mr Murray said.

“There are risks around borrowing costs.”

A key issue mentioned by the economists was that at some point in 2019 is whether the RBA may be forced to consider another interest rate cut if the slump in home prices starts to impact consumer spending and the outlook for inflation.

While each economist offered a variation on how much prices would fall in 2019, each attributed the tightening of credit, rising mortgage rates, and a surge in new supply to the further softening of the market.

To see each economist’s predictions, read the full article on the Australian Financial Review. Please note you will need to be an AFR subscriber to read the full article.

Herewith an Invitation to our Art Sale Exhibition

We would love 💖 you to come and a glass of wine and some nibbles at the opening night!!
See you there?
Please let me know and I will look out for you.
See you there

I am getting back on the bike and it’s not just a metaphor

Not this bike in the feature.
A normal one? Hehehe!
My son and his long-time girlfriend Toni are currently travelling though the US, and some of their things are downstairs – including their shiny new bicycles. My husband bought some sneakers recently and took my son’s bike out, so I decided to take the other one. It’s been a while. I remember cycling alongside my kids when they were off to school at a young age, or weekend trips to Rottnest Island to seek out Qokkas. My grandson loves his pedal bike too, so it’s become a family affair!
It’s so important to keep active at this age, whether it’s daily walks with friends in the morning, or just a 40 minute bike ride around your neighbourhood. I’ve battled bursitis and on and off heel pain, but I feel like i’m in a good place now, and every bike ride is doing me more good.
How do you keep active these days?

Who says in old age you don’t get any fun?

Today our Craft group is enjoying a Bus ride to Kings Park and having a pic Nic there.

pictures are worth more than a thousand words.

Here they are:

Globetrotting. My passion!

I am 72 years of age and every so often I get itchy feet and take off on a trip around the world for a month or a month and a half. I have been doing this for the last 30 years. When we lived in Canada we made more frequent trips with the whole family to visit relatives in Brazil, but now being so remote here in Australia I probably do it every 3 years.
I like collecting stamps in my passports – I’ve actually been having a long-running competition with my husband to see who can collect the most stamps! He has an advantage as he visits remote areas around the world for his work in geophysical surveys. No fair!
In 2017 I *finally* caught up with him and am ahead of him by 3 countries (for now). My next trip will be in 2020 but won’t get any new stamps. I’m visiting my relatives in Canada, USA, Brazil ( my nephew’s wedding), Spain, England and Italy. They’ll have to do. (Hahaha, kidding!)
I have been travelling since 1976 when I left Brazil. I have lived in Canada, Malta, Iran, Kenya and finally Australia. We came here as a family in 1991 when my husband’s company transferred him to Perth, and ended up relocating here permanently in 1994 after falling in love with the place and selling our house in Brantford, Ontario.
It’s interesting looking back at all of the places I have lived and people I have known. What a variety! My son was born in Iran, my daughter in Kenya, and I feel that they have inherited my yen for travel too. My daughter lived in Japan for a year, apart from her now-husband, teaching English, and my son and his long time partner Toni are currently road-tripping through the US and Canada visiting relatives, and plan to do the same in Europe shortly.
We have received news that some of our family from North America plan to come and see us next year. This makes me SO happy! We are always appreciative of people who make the long trek over to see us. As you know, it’s not just a quick train/plane ride! So we always do our best to make sure our visitors have a great time.
I don’t know how long I will be travelling. As long as I am healthy I guess. I love Perth, I feel like I live in resort town with that beautiful West Coast I can see every day, but sometimes I just get the urge to go and see new places, or visit relatives and old friends. I am lucky to be in a position to do so, and I don’t intend to take it for granted.
Where are YOU heading next?

Landlords vital in the fight against homelessness

Homelessness remains a problem in WA and there is much to be done to help our fellow West Australians affected by this.
National Homelessness Week kicks off on Monday 6 August, with this year’s campaign reminding Australians ‘there’s always something you can do’.

As part of the campaign, Shelter WA will be running a series of events in the metro area to raise awareness of homelessness across the state. Landlords Making A Difference is one of these events (details available at shelterwa.org.au), with WA landlords invited to attend to hear from government, industry and not-for-profit sector speakers about the actions they can take – small and large – to help in the fight against homelessness.

WA needs more diverse rental housing

The private rental market plays a vital role in helping to provide safe, affordable and accessible housing. Recently, REIWA met with Shelter WA to discuss our shared priorities of delivering a more diverse range of rental properties to accommodate WA’s changing housing needs.

Currently, the WA rental market does not adequately cater to those most at risk of homelessness, with Anglicare WA’s 2018 Rental Affordability Snapshot highlighting this issue. The snapshot found less than a quarter of rental properties in Perth are affordable for families where one parent is earning the minimum wage and the other is caring for small children, while even fewer properties are affordable to those who receive a pension or other forms of income support.

While these big, systemic issues can feel beyond the scope of any individual, there are still plenty of things landlords can do to make a difference. For example, allowing pets in the home can make a big difference to someone who is fleeing family violence and looking for a new place to rent, but is fearful of leaving their pet behind.

Victims of family violence at risk

Family violence is a key contributor to homelessness. Victims of family violence suffer significant hardships when they are forced to leave a rental home. They are at risk of homelessness, loss of employment opportunities and disruption to their children’s education. They also frequently carry the financial burden when a tenancy ends, such as paying unpaid bills they are not wholly responsible for.

Supporting these victims is just one way landlords can make a difference. REIWA recognises the role our industry plays and we are supportive of the Government’s efforts to amend the Residential Tenancies Act to better assist victims of family violence. We have been working with the Government to ensure appropriate safeguards are in place to maintain a supportive environment for property investment, while ensuring victims have better protection within the context of a residential setting.

We all have a part to play in helping those who struggle to find appropriate housing opportunities. I encourage everyone to look at the small ways they can help make a big difference to those sleeping rough on our streets this Homelessness Week.

Support WA’s homeless

If you’d like to help out those sleeping rough on our streets, please consider donating.

By doing so, you’ll be helping REIWA’s Community REInvestpartner, The Salvation Army, provide much-needed services to those in need such as meals, accommodation and crisis counselling.

Donate now