Now that the Perth economy is starting to elevate and prices are at very affordable levels, this might be the perfect time to invest properties in Perth. One remarkable point to note when investing in Perth is the entry price point, because it is still possible to invest a competitively sized property in Perth for under AU$500,000. It’s a very unlikely situation to find in other capital cities such as Melbourne and Sydney. Associated purchase cost consists of stamp duty, settlement fees, strata levies, property management, ongoing taxes, mortgage repayments and deposit of 5-20% of purchase price. However, this varies from state to state. For Perth, there is no foreign buyer levy. Therefore, bigger savings if you buy Perth property. Rental Income & Yield, Perth investment is climbing up on the market, thus making this State a long term opportunities for investors to make an abundant profit through it. This is also an approach suitable for more savvy and financially stable investors.
However, there are challenges to watch out for when investing in Perth, such as high vacancy rates. Perth’s current vacancy rate is at 4.7%, which means that investors may have some risks of having their properties sit empty probably for capital growth. The best way to overcome this is to have your finances prepared. Another point to note is, to always choose your property wisely and best to have rental guarantees. Location is a vital part when it comes to selecting an investment property, no matter which city you buy property in. There are few points that you should consider, top of the list is having the location that is adjacent to great conveniences such as recreational parks, schools, universities, public transport and sporting fields and focusing on locations within 10-15km from the CBD, having parking spaces provided would be an added advantage.
A fine example would be VELOCITY by River Developments located in Cannington. Cannington known for its solid investment in the most promising development precinct of Perth WA, one of the western world’s fastest growing cities.
Parveeni Reddy
Digital Content Executive