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Regardless of your budget, there are exciting opportunities for all potential investors in Perth’s property market.
Whether you can stretch your budget for a property close to the city or are limited to suburbs further out, Perth’s quieter market has a number of opportunities, allowing buyers to find a property that ticks the right boxes, fits their budget and aligns with their strategy.
“Above all else, a good investment should have potential for strong capital growth, and the easiest and fastest – but not always cheapest – way to achieve this is by purchasing a property with add-value potential,” says Property Wizards director Trevor Dunkley.
“This could be a property that can be renovated, or subdivided and developed,” he added.
We look at three suburbs that cater for three different budgets:
Investors on a tight budget will generally have to look further afield for their ideal investment opportunities.
“Perth’s inner suburbs may have climbed out of reach for the average investor, but by targeting properties further from the city, investors can find more options, particularly houses suitable for adding value, and those earmarked for rezoning,” he says.
Wanneroo, a growing suburb 30 kilometres north of Perth’s CBD, was recently rezoned to allow for development in certain pockets,” he says.
“As the market improves, the suburb becomes more popular and prices increase, investors should research prices carefully and compare with other areas to ensure they haven’t overshot the mark.
“The suburb’s proximity to shops, parks, schools and lakes, coupled with easy access to the CBD via the freeway or Wanneroo Road, gives Wanneroo the boost it needs to be a promising investment for the future.”
Investors with a little more in their budget can find investment opportunities in the northern suburb of Heathridge.
Tenants and home owners alike are drawn to this area because it enjoys great access to the freeway and the Butler train line, excellent proximity to Joondalup Shopping Centre, and of course, the beach.
Additionally, some areas in Heathridge have recently been rezoned by City of Joondalup, opening up a range of promising add-value opportunities in the area.
“For example, investors could buy an older home where a cosmetic renovation could increase the rental return while they wait to build the equity and save to carry out the development,” he says.
“Alternatively, they could hold onto the land and decide what to do later, once the rezoning has generated new development in the area and given the whole suburb a lift.
“Either way, the buyer should pay attention to the quality of the housing, as an old house bought with the intention to later demolish may require more maintenance in the meantime.”
Bang for your buck in East Victoria Park
With a median price of $647,500 (September 2016), East Victoria Park is out of reach for many investors in Perth.
“But for those with the deep pockets and willingness to do their research, East Victoria Park does have opportunities,” he said.
“Only 7k from the CBD, close to Victoria Park and Carlisle train stations, the Crown Casino Complex, Curtin University and Perth Airport, East Victoria Park is highly attractive to tenants and home owners.
“There are still subdivisible properties available in the area, though they are scarce and high demand pushes up their price.
“However, for the right investor, the location means it is definitely possible to find a winning property in East Victoria Park.”
Regardless of your budget, it’s imperative to understand that successful investing in real estate is about location and time in the market, not timing the market.
“You can be confident in an investment property that is in a location that appeals to tenants, has strong growth drivers and add-value potential.
“No matter what your budget is, there are impressive deals available for those investors in Perth who are willing to do their homework.”