Property investors as well as small bathroom renovations Perth analysts are confident that the real property sector in the city will rebound and get stronger in the near future.
Though the property sector in Perth has been dramatically improving, other markets are still struggling and are pulling the overall performance of the Australian market down.
Lately, the lenders made the decision to increase the interest rates to the existing property investors as well as to new investors. This move was questioned by the Property Investment Professionals of Australia (PIPA). The group urged the government and the regulators to take a balanced approach when working in order to help the property market to flourish.
The chairman of PIPA said that increasing the interest rates for investors appears to be a move that seems to be opportunistic for banks which could potentially have flow-on effects to the overall property market.
The chairman said that increasing the borrowing costs for both new and existing investors seems to be unfair and would detract from the common goal of setting a balance in the property market. PIPA believes that there should be new measures placed in order to slow the new investor lending like restricting the power of borrowers and decreasing the power of new investors in certain locations where the market is set to head. The real property industry needs to be unified in slowing the investing activity in some key markets. PIPA supports responsible lending and it is in this light that they encourage the Australian Prudential Regulation Authority (APRA) to take transparent approaches rather than make use of their closed-door tactics.
According to PIPA, the latest pressure tactics employed by APRA whereby the resulting action force lenders to lock out the investors or increase rates have raised questions and concerns for the real property industry.
While investing in real estate can be a powerful investment tool, people should recognize that not every investment in the property market will appropriately deliver high returns in a market that is not particularly stable. The truth is that the odds can be against you.