construction activity expected to ratchet up this quarter
Western Australia in general has taken a dip in confidence according to the latest ANZ/Property Council Survey. The good news, however, is that expectations around upcoming work is improving - a good sign for increased activity for the construction sector in the coming months.
When it comes to forward work schedules, builders in Perth and the rest of WA are expecting an increase in activity. The only other state that has increased their sentiment in this area is Tasmania, while the rest of the country is less confident than it was last quarter.
To fill the busy period that is expected ahead, many Western Australian practitioners are expecting to increase their payroll this quarter. Staffing levels are expected to increase for the first time in a year - great news for the local economy.
The cost of a new home in Perth
Western Australians are not expecting house prices to grow as much as they have in previous quarters. This could lead to a busier real estate market as housing becomes more affordable. Avoiding getting caught up in the competition for existing properties can be avoided by building your own home at a pre-determined cost.
It should be noted, however, that the cost of retirement living properties is expected to increase. The rising cost of housing for elderly relatives could lead some people to consider extensions or granny flats as a solution. A mypod from apg is well-suited to this purpose.
Buying a property in 2015
ANZ Chief Economist Warren Hogan pointed out in a January 15 release that state governments had an important part to play in encouraging their local real estate markets, but that there are also more widespread market conditions that could change real estate in 2015.
Top amongst these is the way the Reserve Bank of Australia (RBA) decides to move the interest rate in the coming months.
"Despite a relatively positive outlook for the property sector, we continue to expect the RBA to remain on hold for an extended period of time." said Mr Hogan.
"However, we acknowledge the near-term risks are more skewed towards a cut in the first half of 2015, particularly if the unemployment rate increases or the AUD doesn't sustain its recent depreciation."
An ease in the official cash rate towards the beginning of the year could create very favourable conditions for taking out a construction loan to complete construction of your own home. However, whether there is a cut on the cards is far from certain. Getting your finance locked in before their is a rise is probably a more important consideration.
According to finder.com.au many finance experts are predicting interest increases later in the year, even if there is a reduction from the RBA in the first part 2015.