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APRA’s proposal to remove the current interest rate floor on home mortgages will prove a massive boon for the market in Western Australia, according to Raine & Horne.
Principal of Raine & Horne Rockingham Paul Curran said this is particularly the case in suburbs like Baldivis and Rockingham to the south of Perth.
He said the APRA move follows the election week promise to introduce a scheme to make it easier for first-time buyers to save for a first home.
“For many first home buyers, the move is likely to boost their borrowing power significantly,” he said.
“Throw in the First Home Loan Deposit Scheme and the prospect of an interest rate cut, and markets such as Baldivis and the wider Rockingham area are set for plenty of first-timer activity.”
In addition, Mr Curran said first-time buyers won’t be required to pay lenders mortgage insurance, which adds “many thousands” of dollars to an average first loan.
“Throw in the WA government’s $10,000 First Home Buyers Grant and there’s never been a better time to snap up a property in the popular first home buyer hotspots.”
General manager of Raine & Horne Craig Abbott said the prospects for some of WA’s coastal markets are also looking positive.
“The lower Australian dollar against the US Greenback has not only been able to significantly bolster the values of WA exports but will also make our real estate markets more attractive to overseas buyers and Australian expatriate workers.
“We are also seeing a gradual increase in workers moving to WA to fill skills gaps, and the immigration inflow will bolster sales and rental markets in the capital.”
Mr Abbott said there are already signs of better conditions.
“We are seeing some positive indicators such as falling rental vacancies down to 2.8 per cent, the lowest in many years, and falling listings,” he said.
“Coastal locations such as Bunbury and Rockingham are set to bounce, as well as canal properties in Mandurah where quality houses from $600,000 offer excellent value.”
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