Perth property investors should not buy into talk of recession. There is light when you look down the tunnel.

For Australia’s economy, the cycle has bottomed out.

The precarious situations elsewhere in the world, of course, are not inspiring confidence. But the thing is, we have minimal exposure to countries with serious sovereign debt burdens.

Similarly, we were not big players in the sub-prime debacle and investment boom that preceded the Global Financial Crisis.

Our banks are doing very well. And, despite that households and businesses are currently in cost-containment mode, we can still boast moderate economic growth.

Three-quarters ...

The proposed Carbon Tax has been hanging like a dark cloud over Perth households. Federal Treasury modelling has now revealed an approximation of reality under the new tax.

Prices under the carbon tax for meat and seafood will rise by 10 cents a week, as will milk and other dairy products. And 10 cents a week is also the price rise prediction for fruit, vegetables and alcohol. Consumers of takeaway food and restaurant meals will need to allow an extra 20 cents a week.

Renters will pay an extra 40 cents a week. And our power bills will rise $239 a year on average, or $4.60 a week.

Overall, households would pay about $510 extra ...

What are the property market experts predicting for Perth house prices?

Their thoughts regarding the ongoing stability of house prices in Australian capital cities are at odds with the preponderance of gloom that appears in newspapers, on radio and television.

Worst case scenario? Perhaps a few years of flat property values. Industry commentators, however, are quick to point out that, in post-war times a major collapse has never been recorded against the overall median price of Australian residential property.

The most volatile price changes occur in mining towns and regional areas and holiday spots are the areas most vulnerable to market whims.

Economists agree that a recession is unlikely to occur in ...

With prices dropping and more enticing borrowing conditions, many Perth renters are wondering if now is the time to jump in and buy a home of their own.

You would want to be in secure employment. A full-time role is better than contract or casual employment in the eyes of lenders.

If  job security is uncertain, it may be wiser to hold off until your income situation is more assured.

Assuming you are ready to buy, listen to the voices in your head saying, “Location, location, location!”

Realise that price growth is not the same for all properties or locations. You’re better off buying a smaller property in a high capital growth area than buying a larger property in an area of lower capital growth.

Buy ...

Perth’s current real estate market favours buyers. And there’s money to be made for investors.

Look for signs of expansion when it comes to location – growth in schools, public transport, and major retailer activity.

Opportunity presents itself among properties that are on the market a while. Generally, the longer a property sits on the market, the more keen the vendor will be to strike a deal.

If the vendor has signed a contract to buy elsewhere, they’ll probably jump at an offer that is unconditional (ie, not dependent on your finances or sale of another property).

If you’re watching a property and its price drops, the vendor has conceded a problem with price. It’s now a matter of by how much.

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