Housing heading for recovery

It’s great to have the election behind us and the media reporting the housing market is heading for a recovery.

A few factors will play part in the market recovery with the announcement that first home buyers will be eligible to apply for a mortgage with a 5% deposit and they will no longer be required to pay lenders mortgage insurance, saving buyers between $5,000 and $20,000 in upfront mortgage fees.

Another positive announcement recently by APRA proposing to remove its guidance that banks should assess if borrowers can afford their repayment obligations using a minimum interest rate of at least 7 per cent. Instead, banks would be permitted to review and set their own minimum interest rate floor for use in serviceability assessments.

With the uncertainty of the election campaign and threats of negative gearing changes behind us the future of the housing industry looks a lot clearer.  Experts predict the new government initiatives will encourage buyers, sellers and investors back to the property market. In speaking with local Perth real estate agents in the past week it seems enquiry has increased locally.

It seems now would be the ideal time to secure a great property.