Renters Are Moving Back With Their Parents in 2023
Perth’s housing market is facing a supply crunch that is driving up prices and rents, creating new challenges and opportunities for different segments of the population. In this article, we explore some of the emerging trends that are shaping the property landscape in Western Australia’s capital city.
1. Relying on Mum and Dad
One of the most striking phenomena is the increasing reliance of renters on their parents to help them buy their first homes. With rents soaring and vacancies shrinking, many renters struggle to save enough for a deposit, let alone afford the monthly repayments. But they also see homeownership as a way to secure their future and escape the rental trap. That’s why some of them are turning to their parents for financial assistance, either by borrowing money for a deposit or using their parents’ home as a guarantee for their loan. This allows them to enter the market faster, access government incentives and manage their cash flow better.
2. Profiting when demand is highest
Another trend we have observed is the growing number of homeowners selling their properties to take advantage of the high demand and make a substantial profit. But instead of buying another home, some of them are opting to move back in with their parents, partners or children to save money and plan their next move. This gives them more flexibility and options for their future and avoids the hassle of finding a new home in a competitive market.
3. Variable over Fixed Rates
We have also noticed that many of our customers are choosing variable interest rates over fixed ones, hoping they will drop soon. It’s difficult to forecast what will happen with the interest rates, but we know that the property market is still hot. And it’s not only the locals who are snapping up properties in Western Australia. International investors and interstate Australians are also drawn by our lower prices and higher rental yields. They see Western Australia as a great place to live and invest in.
