In our time as mortgage brokers in Rockingham, we have been blessed with a great housing market, even as much of Australia floundered during the Global Financial Crisis. Thanks to the mining boom and continued population growth in the Perth market, the Rockingham area thrived. Baldivis became one of the hottest Perth suburbs in 2012 and it currently offers an annual capital growth rate of 20.47%, according to Your Investment Property magazine.
So, what suburbs are going to be this year’s Baldivis? Domain Real Estate, in a project led by Senior Economist Dr Andrew Wilson, set out to answer that question.
The Game is Changing
For a few years, the market might not grow as fast as we want it to. That is going to make it even more important for both owner occupiers and investors to choose the right locations when they buy homes. According to most economists, housing prices in Perth will slide slightly throughout 2016 and rally to go back up 2% at the end of 2016.
In other words, the average capital growth for homes in the Perth area is only tipped at 2% for 2016. We see this as a positive for both investors and owner occupiers. Investors who can hold onto homes for a few years will be able to take advantage of a perfect combination for high yield: low prices and record low interest rate.
Owner occupiers, especially first home buyers, will be able to take advantage of the same combination of low prices and low interest rates. When people are looking back in 2020, they may see the 2016 housing market as a “sweet spot” in which a lot of people were able to enter the housing market and position themselves nicely for the inevitable period of growth that is projected for the future as Australia doubles its population by 2050.
Dr Wilson may see Perth prices as stagnating and some continuing to lower as the market “bottoms out” in the middle of 2016, but he also sees the market turning around by the end of the year. According to Dr Wilson, “The worst is over for the Perth market and it will end 2016 in the black.”
He sees the preceding year as “market corrections” and expects “buying and selling decisions” to “return to normal.” So, which suburbs are projected to grow in 2016?
Rockingham: A Value for First Home Buyers
Rockingham, along with nearby Warnbro, is seen as a value for first home buyers. Those who live here and those who have read this blog before will not be surprised by this development. We have long appreciated the family-friendly environment of the entire Rockingham area and credit that same characteristic to the rise of Baldivis as a “hot” suburb.
Rockingham is family-friendly because of our people. It is also a “bargain” because we have everything a family could want. We are close to the water. We are far enough away from the Perth CBD to have a slower lifestyle but transport to the CBD is easy by automobile or the commuter train.
We have our own amenities such as golf, fishing, the Shoalwater Islands Marine Park, scuba diving, kayaking, shopping and numerous restaurants. As we’ve been saying all along, the Rockingham area is a great place for everyone, from families to retirees. The people are friendly, the lifestyle is great and you never run out of great things to see and do.
The Other Suburbs on the List
We are proud of Rockingham, as you can tell, but we promised to tell you about the other suburbs on the list, so here they are. Armadale is the other suburb that should be attractive to first home buyers, though it is further inland than we are. Claremont, Bayswater, Leederville, Wembley, Como, Butler and Maylands are also predicted to produce above average capital growth in 2016.
Call the Mortgage Brokers at Smartline Rockingham Today
At Smartline Rockingham, we have been providing home loans to people in Rockingham and other nearby suburbs such as Baldivis since 1999. We can provide access to the credit products of 28 different lenders. To learn more, call us today: (08) 9527 1800.