Perth, Brisbane, Melbourne and Sydney are on investors’ hotlist, but if you are looking to get more value for your money, property investment in Perth may give you better return for a number of reasons, including:
Market resilience. With the slowing down of Western Australia’s mining industry, investors fear a slowdown in housing demand. But the city continues to defy these negative expectations and continually posts slow to moderate increases in house prices. For example, in the second quarter of 2014, residential price index rose by 3.6% despite a -0.2% dipped a few months earlier.
Property slowdown. A slowdown is not always a bad thing; it’s the perfect opportunity to get a bargain. You could find a decent two-bedroom for less than $400,000. So, when the real estate market in Perth reaches its bottom, make sure you are ready to buy. Get a pre-approved home loan if possible. Sellers would be willing to lower down their prices for homebuyers who are ready to make a quick purchase.
High rental yield. While the city can’t currently match Sydney in terms of market growth, it can boast higher gross rental yield. An investment property in Perth has comparatively higher gross rental rate than those in Sydney and Melbourne at 5.82%, 5.14% and 4.83%, respectively—thanks to the city’s competitive property prices, rising rental rate, and shortage of rental properties.
Rising Property Demand. Perth is Australia’s fastest growing city in terms of population. In 2013 for instance, the population reached around 1.9 million; this is expected to double by 2040. From this data alone, you can conclude or expect Perth’s properties to increase in value (perhaps not this year or the year after) several years from now—making it the perfect investment for the long haul.
Investing in Perth properties today maybe a bit challenging, but that can be made easier with expert help. Call us today at Buy Australian Properties for a safe and worry-free property investment.