WA property market – lessons learnt from previous cycles
Sarah Wells is a Senior Finance Executive, and resident specialist on finance for medical professionals, here at Finance Detective.
- 2015/2016 could resemble the market around the time of 2008. This is due to Perth’s slow population growth, weak consumer outlook and the flood of new properties
- The hallmarks of 2008 were low economic sentiment and high volumes of new property in WA.
- However Perth made it through 2008, and we have that experience to draw upon when looking to the future market conditions in 2015/2016
What can we learn from past property cycles?
It is natural for the property market to evolve through cycles. This doesn’t make it any easier to adapt, but it does allow us to prepare (and research) action-plans that enable success, even when times are tough.
They say a good investor knows how to act during a downturn. In fact, we believe tough cycles actually offer opportunities for keen-eyed players.
Here are our 5 major tips for making the right moves in 2015/2016:
- If you’re selling consider using auction, Set Date Sale or For Sale Xpress. These selling methods are more responsive to the market, which means you’re more likely to achieve market value for a property and far less likely to undersell.
- If you’re a landlord, make sure you have a good property manager that cares for your tenants, keeps your property immaculately presented and keeps your rent just below market value.
- Having a trusted, professional and knowledgeable Real Estate Agent is vitally important. Now is definitely not the time to be fed lies. It is paramount that you stay informed so you can make smarter investment choices.
- Adjust your expectations. It is perhaps fair to say we have been spoilt with the Perth property market in the past and for every up there must be a down. Now is the time to evolve strategies to suit this new reality. Be ahead of the trend not chasing the market.
- Lastly, stay active. Big gains have been made by investors who take action in tough market conditions. But this ties back to point 3 – get advice from a real estate professional or an investment expert first.