Ray White Cottesloe

A confluence of events on the political and financial fronts has created some of the best buying conditions that I can remember in my time as an agent. The Federal election result cleared away uncertainties across a range of investment platforms. Negative gearing stays and the lesson from the election is it will be a brave political party that tries to unpick it in the future. This should give tremendous confidence to anyone thinking of investing in property long term given the historically strong returns. On June 4 the RBA cut the cash rate by 25 basis points, taking it to a new low of 1.25 per cent. With interest rates still falling and prices at pre-boom levels, I can’t think of when there have been better buying conditions for quality property in the last 20 years. Much of the Reserve’s action is aimed at Sydney andMelbourne where the property bubble has burst and general economic conditions are flat. InWA, however, the economy has quickly regained ground lost when the iron ore price collapsed in 2016. The state budget is back in surplus and employment is picking up in the mining sector. Of course when conditions look really good for buyers, the laws of economics dictate that those conditions aren’t so good for sellers. Stock starts to become scarce as sellers stay out of the market. This is not sustainable and will have a positive effect for sellers. Swanbourne currently has 27 properties for sale and Cottesloe has 50. That’s tight for a high demand market. One thing I have learned about real estate is that decisions on buying and selling are made for all kinds of reasons and money is quite often the least of them. Downsizing is, of course, one of the major reasons why people of the baby boomer generation are swapping the family home for an apartment. No garden to worry about. Lock up and go. So, whether you’re buying, selling or have an investment property call me on 0405 570 903 to discuss all your real estate needs! Deborah Brady Owner & Licensee, RayWhite Cottesloe | Mosman Park A market update from Deb’s desk