5. October 2011 18:41
Western Australia is Australia’s largest
state and the 2nd largest sub national entity in the world. Today WA’s
economy mainly relies on mining, agriculture, tourism and it’s the 3rd
largest iron-ore producer in the world (source Wikipedia). However, Western Australia’s
property turned down because of number of houses falling into negative equity.
According to the RP Data Annual Equity Report, The national average of WA is
3.7% and in all over Australia,
WA is the second state that has second highest number of home with negative
equity (4.9%). The home price in Perth
fell 7.1% over the last year and WA’s recent property price decline is one of
the reasons of the state’s high level of negative and low equity. Due to his
effect, 30% of WA home owners have less than 25% equity in their property. WA
Supreme Court Statistics shows that more 3 houses are being repossessed
everyday, totaling 1,242 last financial year- a 2% increase on the year before. Although this trend is bad for current home owners, it represents an opportunity for investors looking to expand their property portfolios buy buying at current prices.