Perth hot spot prediction becoming a reality

By Paul Bennion, Managing Director, DEPPRO

During the middle of 2018, I predicted that Perth would become a property hot spot during the following two years.

I am happy to report that there are growing signs that prediction is becoming a reality.

The latest figures produced by the Real Estate Institute of Western Australia shows that the median house price in Perth jumped by 5.2% up to $510,000 during the December 2018 quarter.

At the same time, the number of rental properties in Perth fell by 6% to 6,865 during the same period and is 27% lower than 12 months ago.

The vacancy rate in Perth is now 2.9%. Historically, when the vacancy rate falls below 3%, rents start to rise.

Confidence is building again in the Perth property market due to improving economic conditions in the State which will boost employment creation.

For example, more than $25 billion will be invested by the large mining companies in new iron ore mines in the State over the next few years.

At the same time, there has been very low levels of new housing construction in the State over the past two years. This means that there will be a shortage of homes in the city if the local economy gains further traction.

Some leading property commentators are predicting a rental crisis in Perth over the next 18 months due to lack of supply and rising demand for homes by tenants.

DEPPRO has been operating in Perth for nearly two decades and over the time has produced thousands of tax deprecation reports for investors who have purchased investment properties in the city.

During that time, our company has experienced the different cycles of the Perth property market including the effects of the recent mining boom in Western Australia and subsequent downturn.

I am now confident that 2019 and 2020 will see a major upswing in the Perth property market.

DEPPRO is also already recording increased activity by investors in the Perth property market during recent months as they buy into the bottom of the property market with the strong potential of reaping financial rewards during the coming years.

We expect that activity by investors to increase during 2019 with increasing activity from eastern states property investors.

The major housing markets in Melbourne and Sydney are now cooling off and this trend will encourage more investors to seek out affordable capital city property markets like Perth that are primed for growth in the near future.

ASIC Industry Funding - what it means for you


As has been published in the media for some time, the Australian Government has introduced funding arrangements for ASIC (called Industry Funding) to recover most of its regulatory costs from the sectors it is responsible for.

For Vow, this involves charges for all Credit Representatives (CR's) that operate under its Australia Credit Licence (ACL).

The funding arrangements commenced for the FY18 Financial Year (i.e. from 1 July 2017); however, ASIC has only recently published the applicable charges in January 2019 which represents $16.48 for each individual and corporate CR.

Details of the ASIC funding arrangements can be found on

Levy Recoupment

As is the case across the industry, Vow will recoup the ASIC levy from the CR's operating under its licence. The full amount of $16.48 per CR will be deducted from commissions in February.

For more information or if you have any questions please do not hesitate to contact your State Manager or BDM.

More options to help your clients with Resi

Resi Options

Your in-house Mortgage Manager, Resi continues to provide some sharply priced solutions for your clients and are looking forward to supporting you and your business throughout 2019.

Below is a snapshot of some of Resi's most competitive offers. However, Resi offers more than just good rates for your clients. With multiple funding options available they don't only offer competitive solutions for the relatively easy to place deals, Resi often has a competitive solution for loans that sit a little "outside the square" as well.

If you have not touched base with the Resi team in 2018, we encourage you to take the time to get in touch with the Resi team this year!

For Owner-Occupiers Resi offer rates starting as low as 3.74%, teamed up with one of the most flexible products in Australia, including an optional offset account ($10 per month) which operates even during construction or in tandem with a fixed rate.

Payment type & Purpose

LVR < 80%

80% < LVR < 90%*

P&I Variable Investor rate



In terms of loans to investors, Resi have you covered no matter the scenario. Principal and Interest remains the more popular option now with sharper rates available - Resi advises their rates are not honeymoon rates so they represent a good value option for no matter how long your client wants to stay with them.

Payment type & Purpose

LVR < 80%

80% < LVR < 90%*

P&I Variable Investor rate



* LMI can be capitalised on top of the loan amount.

If cash flow is a priority for your client and Interest Only is still on the top of their list, while the rates are a little higher, these are among the best in market, again, not a honeymoon rate. Once the Interest Only period expires Resi also help your clients by reviewing the rate back to a P&I price point at the time! Resi also offer Interest Only investment right up to a 90% LVR!

Payment type & Purpose

LVR < 80%

80% < LVR < 90%*

IO Variable Investor rate



* 90% hard cap for Interest Only lending.

Rates are also available for construction and even bridging finance (fees apply), make sure you reach out to the Resi team to discuss your next scenario!

Craig Herden - Relationship Manager
P: 0478 537 841

Jason Hulbert - Relationship Manager
P: 0468 755 419

Tony Wakim - Relationship Manager
P: 0416 409 100

Mick Abboud - Head of Resi
P: 0403 282 838

Or e-mail our scenarios team on

Check out our Rate Sheet

L&D Announcement - Deposit Assure new portal

Deposit Assure

Deposit Assure has announced a New VOW Portal for referring deposit bonds in seconds.

The new portal enables brokers for finance backed bonds to refer to the Deposit Assure's Concierge service at a click of a button. The Concierge service team will then prepare and lodge the application for you. It really is as simple as that!

Additionally, your clients will also be able to sign their deposit bond applications using DocuSign.

Refer directly from the Vow Deposit Assure Portal.

Watch this video to learn more about the concierge process.

Webinar Induction - Learn all you need to know about referring deposit bonds - Book your place now.

For accreditation with Deposit Assure click here.