Dreaming of a modern apartment in Perth’s CBD? Buying instead of renting could save you money.
A brand-new stylish apartment with stunning views, resort-style amenities, nearby shops, restaurants, cafés, public transport, and everything else that Perth’s CBD has to offer. When searching for such a property, many would opt to rent rather than buy, with the assumption that owning a centrally located apartment would be way out of their budget.
Well, we’re here to share some great news – you can own your dream home AND save money. Recent data shows that buying instead of renting a property in Perth is the more cost-effective option. Here’s why…
Rent in Perth’s CBD continues to rise
According to Domain’s April 2021 Rent Report, while the national cost of renting a unit has decreased (due to drops in Melbourne and Sydney), the cost of renting in smaller capital cities like Perth has continued to increase steadily. As of March 2021, the median weekly rent for a unit in Perth was $350, a 14.1% increase year on year and a 4.3% increase from the previous quarter.
Rent in Perth, particularly in study areas, is expected to rise even more once international borders reopen and foreign students return. This means that rental payments for a centrally located unit like one of our Perth Hub apartments, will come at a heightened cost, potentially higher than mortgage repayments.
Interest rates on the other hand, are at an all-time low
On the other hand, you may be wondering, “aren’t property prices rising too?” While housing prices in Australia has continued to increase each year, Perth has emerged as the most affordable city to purchase a property. There are also several factors that have helped in alleviating some of the financial burden of owning a property. For example, interest rates are at record lows.
The Reserve Bank of Australia reports that as of July 2021, lenders’ interest rates are at 3.05% for outstanding loans and 2.72% for new loans, a 19% and 22% decrease year on year respectively.
This means that it has never been more affordable for homeowners to pay off their mortgage.
There are plenty of incentives on offer for buying a property in Perth
Other factors that have made homeownership more accessible include initiatives such as the federal government’s $15 – $25K HomeBuilder Grant (ended in April 2021), off-the-plan duty rebates in Western Australia, along with other incentives for first home buyers.
Early buyers of our Perth Hub apartments were able to save up to $50K with generous stamp duty rebates along with a $25K HomeBuilder grant prior to construction. Current and future buyers can still benefit from just 10% deposit upon purchase, meaning you’ll have more time to save for your dream home, and no outgoings within the first year.
Other benefits of owning a property
Once you own a property, you’ll have the option to either live in it, or rent it out. If you choose to rent it out, you’ll have no problem finding suitable tenants in Perth’s CBD. While rental prices have continued to increase, this has not slowed the rental market in the slightest. Rental vacancy rates in Perth are at multi-year lows, making it one of the hottest rental markets in the country.
Along with attractive, rising rental returns, Perth’s property prices are also rising steadily. Homeowners in Perth could therefore make a significant return on investment either through ongoing rental payments or capital gains should they choose to sell further down the track.
Things to consider when buying an apartment
Of course, not all properties are worth owning. It’s important to research a development thoroughly prior to purchasing a unit. Here are a few things you’ll want to consider.
Location – Look for well-located developments in areas with significant investment and infrastructure. This will make it more appealing for renters or potential buyers if you choose to sell in the future. Perth Hub is located near public transport, attractions like Yagan Square and Optus Stadium, and the future Edith Cowan University campus, adding value to the development. Find out more about Perth Hub’s location here.
Quality – Being a homeowner also means paying for the upkeep of your property whether you are living in it or renting it out. If you are buying off-the-plan, research the developer to ensure they have a track record for producing high-quality developments. Perth Hub is developed by Far East Consortium, a developer with more than 25 years’ experience in Australia. In addition, newer properties typically require less maintenance than older properties and can save you money in the long-run.
Become an inner-city apartment owner within Perth Hub’s magnificent and visionary residential tower. Perth Hub is located in the heart of the Perth City Link Precinct, and offers a selection of stylish2 and 3 bedroom residences to suit a variety of lifestyles and price points. Enquire today.
Register today and someone from our sales team will be in touch soon.