You’ve probably heard that the Perth property market is currently the most affordable it’s been in years. Maybe you’re seriously thinking about investing, but what are some of the key things you should be looking for?
For starters don’t be guided by sentiment or what old Uncle Joe has to say. In a nutshell, your focus should be on choosing an investment property that will have the best chance of achieving your financial goals.
Once you’ve set your goals, do your research and look for suburbs that deliver growth consistently over a number of years – not just recently. Also, try to identify suburbs offering the potential for gains in the future. Look out for areas undergoing change – areas with new infrastructure, zoning changes, a change in demographics etc. Getting in ahead of the pack will save you money and boost your potential for upside.
We all know location is important, but to an investor it’s critical. You need a property in a location that will attract quality tenants and can be easily sold no matter what’s happening in the market. Keep in mind that most tenants like to be in a suburb in easy reach of the CBD; preferably a suburb with good transport links and with schools, shopping, medical, leisure and other facilities close by.
If you buy a new home in a desirable, well established location at a price well below the median for that area, then you’ll not only attract good tenants but also boost your chances of future growth. Plus, with a new home, you’ll pay less for maintenance and enjoy depreciation benefits.
There may also be other opportunities worth looking at, such as the National Rental Affordability Scheme, which makes it possible for you to invest in a new rental property in an established Perth suburb while enjoying tax-free Government incentives of up $100,000 over 10 years.
Whatever you do, base your purchasing decision on research and facts not gossip and ‘hot tips’. Investing in property is a long-term strategy, so the sooner you buy, the quicker you’ll generate wealth in the future.