Investing in property is always a smart idea. Between rents and capital appreciation, this type of investment has the potential for significant returns. It’s not uncommon to see ROIs of 10% or more if you purchase the right home! Property investment Perth is a fantastic investment strategy in large part because of the city’s vibrancy and robust economy. If you’re looking to buy a rental property, here are three reasons why you should consider Perth as your next destination!
Property Investment Perth Works Because Of The Robust Economy
Perth has a robust economy. Western Australia has a significant deposit of metal and coal, which has led to a boom in economic exports. A healthy economy is critical for property investors since the highest ROI happens with consistent, high rents. If you’re not renting out your property at a price that makes sense and earns enough, then the investment strategy falls flat very quickly. Fortunately, Perth has a healthy economic outlook, so your rental property investments are likely to be safe for quite a while!
Properties Are Inexpensive Relative To Other Large Cities
One of the most attractive aspects of Perth is the fact that property prices are low in comparison to other large Australian markets. The median home price is around $520,000. By contrast, the latest housing indicators show that the average home price is $1.1 million in Sydney.
While $520,000 is not a small sum of money by any measure, providing enough of a down payment to obtain a mortgage is significantly easier than doing the same on a $1.1 million property. Another aspect to consider is that you can buy two homes in Perth for the cost of one in a place like Sydney. With two units rented out, you have some cushion in case one of the tenants leaves (in which case, you still have the other property rented out). If you buy a single expensive home, then if that tenant bails, you’re on the hook for maintenance, taxes, and other miscellaneous costs while you’re looking for someone else.
Perth Has Healthy Rental Income
Despite the comparatively cheap home prices, Perth properties still achieve a healthy rental income. Estimates put the average apartment in the city centre at $1,400 per month for a one-bedroom and $2,300 per month for a three-bedroom. Assuming you can rent out your $520,000 home for even $2,000 per month, you’d be looking at a 4.6% return per year, before capital appreciation. That’s pretty good considering some of the other investment alternatives out there!
The Right City Makes Property Investment Amazing
Property investment Perth is a fantastic strategy because the city has a robust economy, comparatively low property prices, and a healthy rental market. These three factors make Perth a great place to purchase property!
If you are interested in buying investment properties in Australia, please contact us today! We’ll be more than happy to work with you to find the right investment property for your needs – whether that property is in Perth or elsewhere within the nation!
