With the West Australian economy moving in the right direction, interest rates still at record lows, and Perth’s housing market starting to rise, now’s the time to look for your next investment property.
Indications point to Western Australia turning around over the coming 12 months, following a prolonged slump in the aftermath of the mining boom.
Government coffers have been boosted by higher commodity prices, higher payroll tax collections, an improvement in GST returns and growth in household consumption. These all point to an increasingly healthy economy – although more work needs to be done to boost employment rates.
The past financial year also witnessed growing business investment in WA for the first time since 2012-13.
With official interest rates steady at 1.5%, the gap between the cost of borrowing funds and the predicted benefit of rising asset prices, make real estate investment a highly attractive proposition right now.
So, if you’re considering investing in Perth real estate, here are 4 tips for you to consider:
1. New infrastructure projects
A range of proposed infrastructure projects are planned for Perth that will help drive demand for property. One such example is Perth Metronet. It will see a range of suburbs linked by rail to both the CBD and the airport. Suburbs with good public transport connections will always be in demand by renters, so it makes sense to invest in property in those areas to enjoy strong yields.
2.Research the market
Research the specific market conditions of the areas you’re considering investing in. Consider factors such as local employment levels, rental returns and new developments that could lead to an over-supply.
Carefully consider the rental target market for the property you’re thinking of buying. By identifying the most likely future tenants of your investment property, you’ll be able to see whether the local amenities meet the needs of such renters.
For example, are you more likely to have tenants who are families with children? Easy access to decent schools and parks may be required. However, if your renters are likely to be young adults, then proximity to universities and colleges may be more important.
3. Consider up and coming neighbourhoods
Popular suburbs already command premium prices. This means the chance for rapid capital appreciation may be limited. You may be better off looking to nearby suburbs that are earmarked for future development, so you can still secure a bargain, and benefit from longer-term asset price growth.
One such area is the beachside suburb of Scarborough. Located north of popular Cottesloe, Scarborough has been known as an area with many backpackers. However, this is set to change. Significant redevelopment has been approved for the foreshore area, including two new residential skyscrapers.
Scarborough’s new public amenities, including a revamped beachside pool, will make the area extremely attractive to families with children. Shopping centre upgrades and close proximity to the CBD will attract professionals.
4.Ask the experts
Investing in real estate is complex. Each area has unique market conditions that will affect the value of assets. It pays to speak with the people who understand the specific circumstances in the area you’re looking to invest in.
At Mint Real Estate, we possess years of experience in the Perth market. We understand what demand exists for various property types. This helps us guide investors when it comes to selecting the right type of investment, to ensure you secure high yielding tenants.
We have access to a large pool of verified renters, so can ensure your investment remains tenanted and well maintained.
At Mint Real Estate, we list a wide range of investment properties to suit all budgets. So, whatever your investment goals, speak with us today to secure your ideal property!