Perth is one of Australia’s most affordable capital cities to buy a property. If you are a seasoned investor or perhaps looking to join the club, keep reading as we go through some compelling reasons to purchase an investment property in Perth, WA.
Prices are crashing across Australia, but Perth prices are increasing – FAST
The post-pandemic boom seems to have passed, and while many states are experiencing a drop in house prices, this is not the case for WA. Back in the day, Perth was not the place to be, but due to recent developments, new infrastructure and a strong economy, this has all changed.
Did someone say double-digit growth? That’s right, as of August 2022, many Perth suburbs have had a growth rate of 10% and above, including Rivervale, one of the suburbs Ray White Urban Springs represents. In addition to this growth, many people have decided to move west for job opportunities, good weather and a lifestyle shift which has increased the demand for rental properties in Perth.
Who doesn’t want that idyllic beach lifestyle that Perth people always brag about on Instagram? We think this one sells itself. Perth properties, especially those within the City of Belmont suburbs, are positioned close to the city and a short drive from the coast or hills. You will spoil your future tenants for choice with the variety of outdoor activities they can participate in throughout the year.
Perth weather has been known to attract people from all over the world, and although it may seem trivial, it is one of the key factors influencing the decision to settle here and should not be overlooked by future investors.
The border closures due to the pandemic meant many skilled workers were prevented from entering the state (including interstate and international), which meant a severe labour shortage. Now that things are slowly returning to normal, it is a priority for the industry to attract more workers to WA. This opens up the potential for investors to purchase properties across rural WA as not all mining industry workers are Perth based.
Low stock on the rental market, high returns
The current market shows exceptional yields for property investors, and if you purchase a property in Perth, you will see the returns in no time. There is a low vacancy rate for rental properties, which has put pressure on renters, with increased weekly prices consistently rising. Perth needs more private investors as homeownership is not always the preferred option for people. If the number of investors increased, it could help balance out the rental marketing by providing more affordable options for renters.
Low unemployment rate, low risk of non-payment from tenants
WA’s unemployment rate at 3.4% which is the lowest in the nation. It is also the lowest rate for WA in 13 years! This is great news for property investors as there is a lower chance of rental arrears and tenancy breaches. The high employment rate also means more people are able to afford living on their own or with a reduced number of housemates and will be looking for a suitable rental property.
Experienced property managers
Ray White Urban Springs was founded in 2009 and is made up of some of the most experienced, friendly and professional property managers in the area. The Principals Andrew Huggins and Amy Waugh aim to be the real estate agent of choice for the City of Belmont and surrounds. As we’ve outlined in this article there is a growing demand for rental properties in Perth and if you are an investor from interstate, confidence and trust in your property managers is necessary for peace of mind. A friendly face to receive updates from doesn’t hurt either!
Perth is up and coming and what is common knowledge for the locals who are currently dealing with road closures and traffic build ups might not be known for you east-coasters. Perth is FINALLY getting a trainline directly to the airport. This exciting development means residents and tenants living in the area won’t need to depend on having a car to get around as this line also connects to the rest of Perth. Ray White Urban Springs represents properties in Redcliffe which will be the home of a new train station along the airport line, making the area more appealing to future renters. Adding a trainline to the surrounding suburbs also means properties will continue to increase in value in this area.
The other significant development is the southwest as it’s known as now has a direct flight from Busselton to Melbourne. This new route makes it easier for the growing number of residents and tenants in the area to connect with the east coast without having to make the 3 hour drive up to Perth just to fly out. The southwest region is a huge part of Western Australian’s tourism and this new flight allows visitors from the east coast to reach their destination quicker if Perth wasn’t on their list of places to see.
Now may be the best time to consider purchasing an investment property in Perth, WA with all the current growth and future planning happening. It has become a hub for young professionals, families and skilled workers and no longer seen as the place you go to retire.
Maybe add that people can buyer (higher returns and so many options for investing but up north has higher risk. Property in Belmont/Rivervale perform very well because it’s between Perth and the airport so it’s great for FIFO.