Property Investment Western Australia
New apartments, home and house buyers’ information and property investment guide...
Buying an investment property is a proven way to create wealth at a lower risk than buying shares which may be at threat in a volatile market. There is a lower return in purchasing property but potential high returns are forsaken for less risk and a stable return from property with a long term investment strategy.
However, as with any investment, there are no guarantee which is why it is important to do your research such as investigating the investment property location, capital gains growth and the potential rental income and yield. It is also essential to find a property in a location desirable to tenants and find out about any planned developments in the area which may add or decrease value to your investment property.
Here are five reasons why you should buy an investment property now and start building your investment portfolio.
Capital growth
Capital growth is the increase in the value of your property over time and is one of the main reasons why people invest in real estate. Your best chance of achieving capital growth is to have a long term investment strategy.
Rental income and yield
Whether you buy a property in the inner city, the western suburbs of Perth or regional Western Australia, the property should be in close proximity to public transport, main highways, hospitals, shops and cafes and restaurants in a desirable area for potential tenants. The greater the demand for your property, the higher the rent you can charge.
Taxation benefits
A number of deductions can be claimed on your tax return, such as interest paid on the loan, repairs and maintenance, rates and taxes, insurance, agent's fees and buildings depreciation. Depreciation schedules where possible are provided for each of our investment properties.
Affordability of property investments
Buying an investment property to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live. Alternatively, you may choose to rent in a more desirable and expensive location and buy an investment property in an area that you can afford.
Greater degree of control
Property investing gives you a greater degree of control than being at the mercy of a volatile share market that can plummet overnight. With proper planning and research, you can buy a piece of ‘The Australian Dream’ without it becoming a nightmare.
Understanding the WA property investment market
Western Australia (WA) is the largest Australian state with an area of 2.5 million sq km (1 million sq miles), a coastline of 12,500 km (7,813 miles) and spanning 2,400 km (1,491 miles). WA occupies a third of the continent and contributes nearly one third of national export earnings with only 10% of the population.
Perth is the capital city of WA and always ranks highly as one of the world’s most liveable cities in the Economist Intelligence Unit's liveability poll. Perth enjoys a Mediterranean climate and offers a lively blend of business, fine dining restaurants, cafes and shopping against a backdrop landscaped parks, river foreshore areas and modern and heritage listed buildings.
On the back of a booming mining industry, major infrastructure projects are set to transform the city in the next decade to accommodate a record increase in population growth. This in turn boosts demand for housing, resulting in low vacancy rates, high rental returns and healthy yields making WA a state to consider when adding to your investment portfolio.
Factors to consider when buying an investment property in Western Australia
There are many factors to consider when buying investment property in WA, including:
- Where is the property located? Check that the investment property is located close to public transport, major highways, shopping centres and hospitals.
- What is the price of the property? Research what similar properties in the area sold for.
- What is the capital gains growth? Find out the capital gains history of the location.
- What is the potential rent you can charge? Access current and previous rental reports for the area.
- What changes are planned for the area? Investigate what changes are planned for the region.
Find Investment Property take the guesswork out of finding hotspots in WA. The regional areas in WA include:
