First home buyers should make the most of WA’s housing market
Following the Reserve Bank of Australia's decision to drop the official cash rate to 1.50% first home buyers should make the most of Western Australia’s housing market, says ABN Group Managing Director Dale Alcock.
With the major banks looking to pass on about half of the Reserve Bank’s 25-basis-point official rate cut, this is almost a $50 per month difference in a $300,000 average mortgage.
"Land is competitively priced, as is building a new home. Interest rates are the lowest in history and we could see a couple more cuts before the end of next year," Mr Alcock says.
"It's a combination that makes an opportunistic silver lining for those who want to get into the property market and are in the right position to do so. It's a leg up for First Home Buyers who are in stable jobs and can take advantage of the environment."
As WA nears the bottom of the property cycle, the outlook for housing in the State remained strong Mr Alcock says.
"Despite the slowdown in migration population growth, Perth is still projected to experience population growth of double of that in the late 1990s," Mr Alcock said.
“Looking at where we have been and where we are going over the next 50 years, we will become a city of 4.6 million.”
Mr Alcock said that WA also has five of Australia's top 20 building and population hotspots.
“It means that we have fast growing suburbs and a lot of growth and construction in key activity areas in Perth,” he said.
"Right now First Home Buyers in the right financial position, those with a stable income and who are saving towards their home deposit, can now use this time to move ahead in the property market.
“These cuts will be seen as breathing space for those to pay down their mortgage and grow equity over the next few years."