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Is it a right time to buy a house in Perth? Where to buy an investment property in Perth?
Perth investors are on the lookout for high rental yields or capital gains, while the home-occupiers are looking for a good and safe place to live - somewhere they can enjoy the Perth’s leisurely lifestyle.
There are three main areas in Perth that guarantee success for almost any property buyer, but all of these three come with the premium. As a buyers agent in Perth, we maintain that the property buyers won’t go wrong over long term if they buy a property in Perth close to either: Swan River or Kings Park or Indian Ocean
1) HIGH RENTAL YIELDS SEEKERS
For investors looking for areas of high rental yields we recommend these areas:
1) East Perth - one of the rare suburbs where it is officially cheaper to buy a home than to be a tenant. This is an area in a free transport zone, close to river and CBD. East Perth units also recorded Perth’s top yield for the metropolitan area at an impressive 8% per annum (average Perth rental yields are just under 5%).
2) West Perth - the area where resource companies are clustering and very popular for executive rentals. Like East Perth it is close to CBD and within a free transport zone. An extra benefit is its close proximity to the Kings Park. Not as high yields as East Perth but very low risk.
3) Victoria Park - the cheaper end of the investment market. Not far from the CBD or river, close to Burswood, a big employer. Older style units with better than average yields.
4) Joondalup - 24 km from CBD. Proximity to ECU University, Police Academy and a Health Campus. New housing stock, 7.5% to 8% gross rental yields are possible in certain pockets of this new town.
The property analysts are predicting that with value growth likely to be flat over the coming year and rental rates set to continue to increase, additional suburbs will become cash-positive. It will not happen overnight but as soon as the confidence is back, the investors are expecting to come back to the market because of the current strong rental growth.
2) HIGH CAPITAL GAINS SEEKERS
Mark Twain once said: “Go buy land, young man; after all, they’re not making any of it.”
1) Bentley - proximity to Curtin University guarantees both good rental yields and some land appreciation.
2) Ashfield & Bassendean - this is a rather cheap area with lots of social housing that has prospects of being positively affected by a redevelopment of the Perth Airport. The land appreciation might be significant over medium to a long term. Only 9 km from CBD, direct train line to the City and close to the Swan River. Beside the possible effect of the redevelopment, the Town of Bassendean has plans for the river shore revitalization.
3) Scarborough - it has long been a popular destination for tourists and one of the most affordable beach suburbs. There is a major development changing the face of the beachfront. The Council is considering introducing light rail transport, most likely in the shape of trams.
4) Yanchep - famous for its lagoon beach and marked as the next coastal hot spot. Yanchep is planned to become a significant employment node in the Northern corridor. Extension of the Northern rail line will provide an effective transport to support the development of this area. There are also plans to build a huge hotel and marina complex off the Yanchep coast, but it’s still in the early stage of a feasibility study.
