Baby boomers – people who were born from 1946 to 1964 – will most likely cause the greatest effect on the property scene, as many of them are planning on selling their properties in order to save for retirement.
Rockingham, Western Australia (PRWEB) July 24, 2012
James Eaves, reliable Rockingham mortgage broker and refinance specialist from established mortgage broking company The Mortgage Gallery Rockingham, has revealed how home buyers and those in the real estate industry can adapt and take advantage of the impending property market changes that are set to take place in Western Australia.
According to Mark Wallace, a well respected economist from international consultancy firm RPS, there are drastic changes set to take place in the property market of WA. And among the strongest factors that will contribute to these changes are the baby boomers in the country.
Mr. Wallace explained that baby boomers – people who were born from 1946 to 1964 – will most likely cause the greatest effect on the property scene, as many of them are planning on selling their properties in order to save for retirement.
Analysts stated that baby boomers actually own around a 30% share of the property market, which means that if they start selling their properties, it will significantly affect the market as a whole.
The great weight that baby boomers carried in the property scene was already felt even during the 70’s. In fact during those years, the group has already caused home values in Australia to increase by 33%.
Wallace, in explaining how the baby boomers will affect the market, said, “That's been great. The problem is that now baby boomers who have been net buyers of property are now moving into net sellers.”
He added, "They've had to do that because they haven't had the benefits of superannuation for as long. Property for them is a revenue making investment... a way of funding their future superannuation but the way they need to find that is to sell their property."
In addition, experts have stated that other factors, such as population, housing affordability, finance issues, and mining investments in the country, may further contribute to the changes not only in the property market, but the whole economy as well.
Wallace believes that it is now the increase in income which will play a primary role in the property market – especially when it comes to pricing. And WA, being the top location with the highest income growth in the country, is in an excellent position to drive the property market forward.
"Income growth, and therefore economic activity, is going to drive prices and sales going forward. So the relationship between the property sector and the broader economy is becoming more established, which means [WA] is a great place to be in the property sector," Wallace said.
With these forecasts and figures, coupled with the 12% downturn in property prices and the constant increase in rental prices, analysts believe that now is the right time to invest and buy homes in WA.
To help make this possible, James Eaves is offering his services to people who are looking for home loans in Rockingham, Kwinana and Cockburn areas. Eaves has over 16 years of experience in the finance industry. He works closely with leading finance and lending institutions, giving more affordability and feasibility for every investment or loan a client makes.
James Eaves is a professional mortgage broker at The Mortgage Gallery Rockingham, a leading mortgage broking firm in the Kwinana, Rockingham and Cockburn areas. Eaves assists clients in the entire loan process and provides them with the right options for their financial concerns.
If you need the services of a trusted mortgage broker, contact James Eaves today. You may call him at 0400 204 408 or visit his website http://www.jameseavesmortgagebroker.com.au/about/ for more information.