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Is Perth the next haven for property investors?

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perth property investment

Is Perth the next haven for property investors?

Property investors are always looking for the next hot spot. 

 

When an area is showing high capital gains but property prices remain stable, it lights a fire under everyone’s feet to act fast and snag a life changing deal. 

The question is – how do we know if a hotspot is a genuine hot spot? And secondly, is Perth a hidden investment gem or is it all smoke and mirrors?

In this post, you’ll be able to find out. But first, let’s define but a real hotspot is.

How to know if an area is REALLY booming for investors

At PropHero, we analyse over 18,000 properties every year, but we only buy 500 and for good reason. 

Our team assesses everything when it comes to purchasing a property for an investor. This is an important decision for the investor, and we want to ensure the property they buy with us is going to help them achieve their financial goals.

So what do we look at when we identify properties in high growth markets?

  1. The area but have high economic growth
  2. Housing prices need to be affordable
  3. Properties aren’t in climate impacted areas
  4. There is high demand for rental occupancy 

Property investors are in a different mindset to those looking to purchase a home. An investor cares about the area, the condition of the home, but price is a major factor for many investors. Those purchasing a home may be more willing to spend more in capital cities such as Sydney and Melbourne, but property investors wouldn’t see the massive returns PropHero clients see if they only purchased in their own backyard.

So it’s true, hot spots exist and they are easy to identify. The challenge for many investors is that hotspots are always changing. 18 months ago Adelaide was a desirable location to invest property in, but the rise in demand increased prices so that now good property deals are few and far between. 

The skill for many property investors is being able to identify hot spots. Not just now. But to ensure the investment is risk-free in the future as well. 

If you’re looking to invest in a booming property location, book a call with our team to see if we can help you invest in the area 6x faster than doing it on your own. 

So now let’s apply what we just learned to Perth. Is Perth a booming market for property investors?

 

Perth is a great place to invest in, but it has to suit your goals

In 2022, Perth was one of the few locations that saw positive growth despite an economic downturn. Fast forward to today, and Perth investment properties are delivering high rental yields at some of the lowest purchasing prices. 

According to Corelogic, the median price for a home in Perth is $588,484, which is the second lowest price behind Hobart.

An investment in Perth will deliver one of the highest rental yields as well, which means if you’re looking for short term cash flows.

Perth offers sustainable capital gains opportunities for investors, including:

  • A higher average yield compared to other locations of 5.5%
  • It’s a sustainable option for investors looking to increase short term cash flows
  • It’s seen phenomenal growth in rental prices, with rent value for houses increasing by 13% since last year

Overall, if you’re looking for short term cash flow and are willing to forgo longer term capital gains for a few years, Perth is a great investment destination if that is your goal. 

If you’re unsure, book in a totally free discovery session with our team to see if Perth is the right place for you. 

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