Property Investment to take off in 2011

| May 22, 2011

Perth Property Market Update

Its a busy time for property investors as they near the end of the financial year. There aren’t many investors in the current property market, due to people being cautious about property investment.

But this might be about to change as rental vacancy rates across Perth are falling. Rising rents are also an indication that we are entering another phase of the property cycle. Currently its a buyers market with more than 17800 properties for sale on the market.

Tips for australian property investment

There is still reasonably tight vacancy rate that assures the investor a large selection of keen tenants. This definitely is getting renewed interest from investors in buying rental properties to cash-in on the favourable rental market.

Tips For Property Investors

  • Better investments are more preferred in suburbs which have a consistent population growth, such as near the city or fast growing regional centres.
  • Prospective investment properties should be easy to maintain.
  • Close to public transport, shops and schools. The potential of educational institutions and community infrastructure can increase the value of the investment property.
  • An ideal investment location is where the demand for rental properties exceeds the supply. But investors need also to balance the cost of the purchase with the return on investment based on the rent in that location.
  • If a property is chosen with prospects of good grow in value, it can be an added bonus of capital growth to the property in addition to the negative gearing (tax deduction) you can receive.
  • Another tip to good property investment, is to look for under valued houses in a pricy suburb or in a suburb close to a established suburb.
  • Re-developing properties is another good way to maximise your property investment. Choosing one block with re-development   potential for multiple blocks can maximise your return.

Data and research in relation to making these important property investment decisions could always be sourced from websites like Realestate.com.au, Rpdata, Rismark and REIWA. Make sure you always discuss plans with your bank, mortgage broker and financial planner first.

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Category: 2011, Australia, Featured, negative gearing, Property Market, property outlook, rental properties

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Property man writes articles related to property , stock market and finance. if you like what you see do bookmark the blog and leave me a comment

Comments (1)

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  1. Hey guys, thanks for posting this. Perth is certainly a happening place, but more so Geraldton. Crazy property development happening there. Good to hear someone else mention something about Perth. Again, thanks for posting this article. I’m sure i’ll be back for more soon.

    Keep up the good work 🙂
    Property Investor

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