RP Data Reports Perth Houses Down 4.1% this Year

August 2015 has been a bad month for Perth. The median house price has dropped 1.3% in August, down 1.8% over the last three months. The drop in unit dwellings only fell by 0.4% during August after a 2.5% increase in the last three months.

Since the beginning of the year, house prices in Perth have dropped 4.1% and unit prices have dropped 3.5%. In other parts of the country, it is a very different story. Melbourne is up 11.4% since the beginning of the year. If you really want to know, Sydney house prices have increased 14.8% since January! Their increase over the last six years has been 76%. The sad thing is, experts predict that the Perth market will continue to fall so if you are looking for a home in Perth, it's your market now.

How much can you borrow earning $100k

Interesting graphic came out recently which shows the borrowing capacity allowed by various banks for someone earning $100,000 per year. Today, the RBA announced that they will hold the interest rate due to their concerns about the declining growth rate in China and the market instability there.

If you are saving for a home, you should also read our earlier post about getting the best interest rate for your savings. You could be losing thousands a year!

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$1.3m house under offer for $420k

Interesting article today showed the massive change that can happen in real estate in four years. A house that was sold in Port Headland in 2011 for $1.3 million is finally under offer today for only $420,000, about a third of the price that it was bought for. This is quite an extreme example because we're talking about a house in Port Headland, not suburban Perth. However, it shows that there is nothing guaranteed in real estate, as much as real estate agents swear hand on heart about.
Read the article here.