SOME NOTES ON WHERE WE STAND IN W.A.

SOME NOTES ON WHERE WE STAND IN W.A.
AND A GUIDE TO 25 YEARS OF TRAINING AND EXPERIENCE IN PROPERTY INVESTMENT

W.A. has 10.2% of Australia’s population.
In the latest changes to redistribution of the GST….
W.A will receive 63% back from GST collections.
Most of the Eastern states will receive in excess of 90% with the highest being 97%.
The Federal government considers our economy so strong that we can subsidise the rest of the country.
W.A. has the highest growth in population of all Australian states.
W.A. has the highest growth of the working population of all Australian states.
Average weekly earnings is $110 per week or $5720 per annum higher than the Australian average.
Job adverts in W.A. are up 55% for the year (Australian average which includes ours up 14%).
Merchandise exports are up 60% in 12 months and we now account for 44% of Australia’s total in the last figures (remember 10.2% of the population).
Merchandise imports in W.A. are currently 10.8% of the national bill (consistent with 10.2% of the population) down 8% for the month and 8.3% compared to this time last year. However Australia as a whole ( including our reduction) is UP 4 % for the month and UP 12% for the year.
(Sources; ABS and CCI Perth)

If I was a property owner at the moment I would probably not go against the tide of real estate sales of course only if you have the option to wait.
These are the reasons why.
As far as where we are at the moment in the market;
The market peaked between June 2006 and June 2007 and prices fell after that, dramatically when the GFC hit in 2008.
We were beginning to recover at the start of this year when a series of interest rate rises dampened the market.
I believe those rises were now too many and too soon.
That has been followed by…
The mining tax debacle which made people fear for their jobs.
A marked tightening of lending by the banks.
The sacking of the Prime Minister.

The calling of an election which has always switched the market of simply due to uncertainty.
My advice to owners has always been…
Buy when everybody else is selling (now).
Sell when everybody else is buying. (June 06 to June 07)
If you get out of step, wait.
I realize that not everybody has that option so…..
if you do now is not the time to go against the market.
If not then you have to meet the market by listing within 3-4% of the expected selling price.
I will not get into forecasting as none of the above list of the negatives was forecast by anyone to my knowledge.
However I can tell you that we are currently living in a State where
(a) according to Perth Chamber of Commerce, $200 billion of development is in the pipeline if only the government of the day gets out of the way.
(b) W.A. is now accounting for 40-44% of export revenue from Australia.
(c) Rockingham area is growing at a much faster rate than most of Australia or even W.A.
(d) When the GFC hit we turned back into the most affordable seaside property in Australia within easy commute of a capital city.
(e) Plans have been approved for a marina/shopping jetty similar to Hilaries Boat harbor.
(f) The cost of developing and buiding land continues to grow.
(g) There has been a shortfall in construction of new homes Australia wide for years.

Ross Cutten
Owner/Director
Noble Real Estate