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The affordability of homes on the West coast of Australia is growing compared to the East Coast has been highlighted by the latest ABS housing finance figures according to Shane Kempton, CEO of Professionals.
Mr Kempton said finance figures for August 2016 show the that average home loan in Western Australia stood at $328,900.
“In comparison, the average home loan in New South Wales was $100,000 higher at $428,600.
“These figures reflect the recent market correction in property prices that have occurred in Western Australia following the end of the construction side of mining (now in operational stage) and also the surge in Sydney property prices due surging activity by overseas buyers in that market over the past three years.
“With average wages levels similar between Western Australia and New South Wales, housing in the West coast of Australia is now highly affordable compared to the East coast. “This augurs well for the Western Australian property market as housing affordability will deliver key benefits to the local economy moving forward.
“In particular, it will attract a high level of inter-state and overseas migration once the economy starts to expand. “The last six months has seen improving levels of fundraising for new projects in the WA resources sector and this will flow into the economy with the construction of new projects over the next two years.
“Improved housing affordability combined with a better economy outlook for the WA economy will see an upswing in the local property market during 2017/2018. “With interest rates now at record lows, now is a great time to invest in the WA property market while home loans in the State are very affordable.
“This is particularly the case for property owners in Sydney and Melbourne who are now sitting on high levels of equity following the property booms in those cities. “Fixed interest rates can now be secured for investors at below 4% so by purchasing a highly affordable property now, astute property investors can lock in future capital growth in the WA market over the coming years,” he said