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April 2, 2013 | Media Release
The suburb of Kinross is a solid choice for investors focused on finding buy-and-hold properties that deliver sound rental returns and need little maintenance says Subiaco buyer’s agency Property Wizards.
Property Wizards’ Liz Sterzel said the area had positive attributes that could make it worthwhile for certain property investors.
“Kinross is three kilometres from the ocean and close to the shopping hub of Joondalup, which is also a centre that provides many job opportunities, and it’s also near to the freeway and railway lines making commuting to other parts of the metropolitan area easy,” she said.
“Most of the homes are fairly new – around 10 to 15 years old – and are in good condition, making it quite a good fit for investors looking for natural growth in properties that don’t require a lot of upkeep, as well as good rental returns.”
Ms Sterzel said with only a handful of properties listed for rent in Kinross late in the first quarter of 2013, rental demand appeared to be high, mirroring the greater Perth market where the vacancy rate has settled around 1.9 percent, driving up rents.
“Similarly, it seems sales activity in Kinross is reflecting the wider market in that appropriately priced properties are being snapped up quickly, including many before the first home open or even before they are listed on the internet and often with competing offers,” she explained.
“This is because the housing supply in Perth is low and, coupled with high migration and a buoyant economy forcing up prices, there are lots of buyers with pent up demand, making it hard to secure a property.”
In Kinross recently, the median time homes have been on the market for before being bought is 20 days.*
In late March 2013, 43 properties were advertised as for sale in Kinross and 22 of those were under offer/contract.**
Ms Sterzel said Kinross did have its limitations though in that it was quite far from Perth city and offered few add-value opportunities.
“Investors seeking an extra boost in the capital growth stakes won’t find a lot of joy in Kinross as there are not a lot of properties in the suburb that are ripe for renovating or development,” she said.
“Areas with proposed rezoning are ideal for those buyers wanting to quickly add value to a property but dangers abound in the rezoning arena – including that councils may decide not to go ahead with rezoning and that overpaying for a property in an area due for rezoning is common.
“Investors need to be sure of what they are getting in to and, if they’re not, having a professional onboard can save a lot of money and headaches.”
Ms Sterzel said that as a general rule of thumb, anyone wanting to invest in Perth should look at properties close to the city or ocean as their first preference.
“Properties near to the beach or CBD can be out of reach for many investors though, so the next best thing is to concentrate on areas that are within 20 kilometres of the city or five kilometres from the ocean or river; the right properties in these locations can have excellent capital growth potential.”
*Information from RPData.com and RealEstate.com
**Data from RealEstate.com