Perth’s Investment Potential Grows as Property Prices Stabilise
Property prices in Perth are stabilising, according to the latest figures from RP Data.
At the same time, one mortgage broker is claiming that investors are returning to the WA property market. Rael Bricker, managing director of House + Home Loans, was quoted by REB Online as saying:
Investors are definitely back buying. They’ve worked out that the market has bottomed out and that from here on in it is a buyer’s market.
Now there is stability in the market and very strong rental demand off the back of the momentum in resources, with yields back up to 4.5 to 5 per cent.
Two months ago, I asked: is it time to invest yet? Yesterday’s REB Online article would suggest that the answer is yes.
But meanwhile, respected property investor Michael Yardney says that it doesn’t matter whether the market has bottomed or not:
The moment you leave your success or failure up to what direction the market goes, you’re in trouble… Timing the market is what unsuccessful investors do…
Here’s what smart investors do to create long-term wealth:
First, they become educated in a specific asset or investment strategy. They read, they learn, and they understand. They don’t just throw money into an investment on a “hot tip” or because everyone else is doing it.
Second, they choose an investment strategy that suits the market.
He goes on to say that smart investors can make money whether the market is in a slump or not, and that a good strategy is to “get educated” about what investment practices are working.
I agree on this point – education is the most valuable step a property investor can take. With proper research, you can find out what’s working for others, work out exactly what you want, and even get a better deal.
What do you think? Has the WA property market bottomed out yet, and does it matter?
Image by Mal B via Flickr.