This market is over heated with frenzy buying and stock is hard to find. The prices people have to pay today does not make it as good an investment area as other states at this time, due to the fact that rents have not increased in line with the purchase price. A home for $260,000 2 years ago rented for $220 a week but now that same size home is $420,000 and will rent for $270 a week. There is still capital growth likely but the area has to be watched carefully to make sure one doesn’t buy in when it is on the boil.
Look at any map of Australia and you will notice two things. Firstly, Western Australia is huge, taking up almost a third of the country. Secondly, Western Australia is very spacious. In fact, Western Australia is over nine times as large as the UK for example, yet has a population of a little fewer than 2 million.
Back in the 1970’s and 80’s, Western Australia suffered the stereotype as a far-flung, slightly backward outpost, but now it has rightfully gained a reputation among tourists and prospective emigrants, and more importantly investors, as being able to offer a lifestyle to suit almost anyone. The metropolitan chic of urban living; unspoilt landscapes for rural retreats; and suburban sprawls teeming with community spirit. All this and its Australia’s sunniest state.
As this potential for economic growth has slowly been realised, Western Australia, pushed by high living standards and intense internal demand, recently recorded its strongest rate of growth yet.
According to the Australian Bureau of Statistics (ABS) the Gross State Product figures for 2003-04 increased by 7.5% to AUS $89,115 million, by far the fastest rate of growth of all the Australian states and territories.
Western Australia has the lowest unemployment rate, 4.3%, and 3,500 new full and part-time jobs were created by the end of 2005.
Despite all this economic stability and growing prosperity, the Real Estate Institute of Western Australia found housing in WA to be among the cheapest in the country.
- This is most pronounced in the seaside suburbs.
- Land near the beach is ridiculously cheap by East Coast Standards, with good rental returns.
- Housing is of a high standard and the suburbs are clean and well planned with excellent roads.
- Perth is a city worth visiting and the cost to visit quite reasonable (Thank you VIRGIN )
The new beach side suburbs to the north of the city are booming with major service and infrastructure developments currently underway. These include:-
- New Electric Railway system.
- New Freeway System.
- New Primary and Secondary Schools.
- New Universities including the moving of established inner city Universities to this location.
- New Shopping Centers.
- New Commercial and Industrial Precincts.
- In fact a whole new city infrastructure only 5 minutes from the beach.
