Why 2021 Is The Year For Home Renovations In Perth

As we enter into a fresh new year with a positive outlook towards 2021, Perth homeowners and investors will be delighted with the latest news headlines which are alluding to a promising year of growth for Perth property prices. Even if you’re not looking to sell your property this year, with the property curve set to increase, it’s an ideal time for home renovations in Perth as this will enable you to position your property towards its highest value ahead of market price surges.

We take a look at why now is an ideal time to start planning a future renovation, whilst taking a snapshot look at the Perth property market, with some tips and considerations ahead of your future project.Visit here; House renovations Perth.

Forecasting The Perth Property Market In 2021

In a recent Rent West article it was reported that property values throughout Western Australia are tipped to grow by as much as 12% this year – welcomed news for owner occupiers considering a future move, as well as investors looking to maximise their rental returns.

Economists and property experts have forecasted the Perth median house price to increase by roughly $47,500 with the median Perth unit price tipped to rise by $37,000. This is welcomed news for the WA property market which had previously been in a stagnated position, only to see 4.9% growth in property values during the September 2020 quarter.

Thanks to record iron ore exports contributing to a growing state economy, alongside record household spending and consumer confidence beginning to recover to pre-COVID levels, we’re now seeing a positive impact on property prices.

This is positive news for those sitting on their nest egg with future plans to sell, or those just wanting to improve their capital as outlined in our recent, The Benefits Of Home Improvements To Add Value To Your Home.

Advice For Investors In The Rental Market

Perth investors will be counting down to the expiration date of the Residential Tenancies Act set for late March 2021, with opportunities to increase rents once the imposed freeze on rents is lifted by the government who implemented the initiative as a COVID-19 response. According to REIWA’s President (Damian Collins), rental rises in Perth are expected to rise by 10-15% in 2021.

The current vacancy rate in Perth is also its lowest point in 13 years, presenting an ever-present opportunity for property owners to acquire higher quality tenants thanks to healthy competition, as well as higher rental returns. Homes with more features, space, functionality and style will command higher weekly rentals, thus leading to the potential of home renovations driving strong returns for investors.

 

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