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The Perth real estate market: a growing market
According to market research, the worldwide real estate market will be worth $5388.87 billion by 2026. The market exhibits a 9.6% Compound Annual Growth Rate (CAGR).
Perth is an amazing area in Australia that’s rich with opportunities. Property investment is the best thing you can do to build your portfolio and grow your net worth.
Learning to buy your first investment property in Perth is the first step toward financial independence. The average house prices in Perth make it one of the most affordable areas to invest in today.
But, you have to consider the growth rate before making any commitment. Also, know what your buyers and tenants will look for in a property.
Keep reading this guide to know how to find the best investment property in Perth.
The Type of Investment Property Perth
If you’re learning about investment properties in Perth, begin by knowing what kind you want to buy. Remember, it’s your money and investment potential, so take your time and learn about the different options available to you.
You can buy an apartment, home, multi-use property, commercial property, etc.
Know about the pros and cons of the different Perth investment properties.
That way, you’re prepared for the variables that come with renting them out, buying them, or selling them. Begin by looking into the strategies that will assist you in being ready for the obstacles that come with the territory.
Consider Perth as an Area to Live and Do Business
Know about the attractions in Perth and the reason people love the area. The attractions people like include hiking trails, beaches, restaurants, etc.
When you buy a Perth investment property, you can rent it out to tourists or flip the property for sale. Also, young professionals appreciate the area, so you can provide them with a home to make their homeownership dream come true.
Find a Good Area to Buy the Best Perth Investment Properties
Another top property investment advice in Perth is to ensure you know the best areas. Some ideal areas you can live and work in Perth are East Perth, Rossmoyne, Burswood, Floreat, Claremont, Cottesloe and Highgate.
Some areas are less congested than others, while others are more congested. Know about the local attractions, traffic patterns, and living costs in each area.
That way, you will know how much you will pay for the properties. Also, you get to know the type of benefits you’re going to pass on to other people when you sell or rent them the property.
Wide Approach
Consider taking a broad approach when looking for the best property investment in Perth. Most first-time investors buy properties in their neighbourhood since they are familiar with the area.
Taking a narrow approach to the investment property location will limit your options. For instance, some investors in Perth’s outer suburbs overlook good opportunities in the inner-city area.
Such areas now have highly affordable property prices.
Stay Focused
After choosing an area, avoid making an emotional decision when choosing an investment property. Most investors buy a property they like to live in right away.
But, it’s crucial to remember that your investment property in Perth must appeal to tenants who will pay rent. That’s why you have to determine if the property you plan to buy will be appealing to renters.
Most renters are often younger people who love living in areas close to the city. They love low-maintenance properties like townhouses and apartments.
Note that rental income is an important factor in servicing your loan. So, if you can’t find tenants, it will be hard to keep the property over the long term.
Use a Property Manager
A big mistake first-time investors make is trying to manage the property themselves. Most naïve investors choose poor-quality tenants by not doing the necessary background check.
That’s one of the reasons why first-time investors do not go on to buy a second investment property. Poor-quality tenants result in the loss of thousands of dollars in income and property damage.
That becomes a big financial setback that first-time investors can’t recover from fast. A property manager can achieve a higher rental price since they have the training to negotiate and are more familiar with the market.
Property managers also have access to systems to reach a larger audience. They can advertise your property and ensure you rent it out quickly.
Get Your Credit and Finances in Line
When planning to get into real estate investing, ensure you put your finances together. You can land a mortgage to help you afford the property without paying for it all out of your money.
Your credit score is critical when getting a bank mortgage. Your borrowing ability depends on your creditworthiness since it shows you can pay the bank back.
If you have to improve your credit needs, take time to work on your score. Pay things back and negotiate with companies you owe.
Watch this video for more information about the 2022 RBA cash rate.
Find a Property Investment Company in Perth
It’s crucial to find a property investment company in Perth to assist you when making your investment purchase. Note that there’s a difference between buying a home to live in and one to rent out or sell.
Ensure your real estate buyer’s agent is also investment-minded to give you Perth’s best property investment advice. Also, engage a real estate lawyer to help in every step of the process.
That way, you will avoid mistakes that may interfere with the process.
Find the Best Investment Property in Perth
The above points will guide you in buying your first investment property in Perth. Perth has many promising and affordable investment options.
Most properties will need long-term commitment, but it will be worth the wait with the correct projected growth. Other than impartial market indicators, conduct some research about the area.
At You&Me Personalised Property Services, we will guide you hand in hand in your property investment journey.
Contact us now to find the best investment property in Perth.