I think the time to buy in Perth was around 18 months ago for the type of properties I prefer to buy. I was looking around Eden Hill, Padbury. I also had a property for sale at Eden Hill at the time that I half owned, other owners wanted to sell it on open market. When I first put it on the market, I was getting offers for $320,000. After a few months I was getting offers for $350,000. Now it would sell for $400,000.
Hegney mentioned there would be a long period of slow growth after bust.
One of the things he mentioned was, "would the first home buyers be able to still afford Repayments at 7%"?
He had also mentioned FHB may rent in future, and buy IP's as costs are deductable.
I think it will be interesting to see what happens when some FHB's come off 3 - 5 yr fixed loans over the next few years, and what interest rates will be then.
I really can't make the holding costs worth it to purchase at present, unless I spot a really good buy.
I was sitting beside a real estate agent at the seminar and I found the conversation with him as interesting as the guest speakers. He sells units around East Perth and mentioned vendors are still having to adjust prices to make a sale.