WorldExecutivesDigest.com| 4 Reasons To Invest In Perth Real Estate | Buying a property is a big step. Whether it’s a family a home, a personal investment property or a commercial business venture, there are many things to consider before committing to buying or building a property.
Location is of course a huge factor when it comes to real estate investment. Where you choose to buy or build your property will have a huge impact on its value as an investment. So with that in mind, let’s take a look at some of the factors that make Perth and the surrounding area a great choice for investors and homemakers alike.
1) It’s more affordable
It’s no secret that property prices in Sydney are exorbitant and Melbourne is not far behind. By comparison, Perth and WA in general offer far better value of money than properties on the East Coast. For the same price, buyers in Perth can get bigger and betters properties than their Sydney counterparts.
According to a Housing Affordability Report for the December Quarter of 2018, released in June 2019, Sydney property prices are over 8 times higher than the median income whereas properties in Perth only 5.2 times higher. This means that the idea of buying a home is fare more attainable for the average resident in Perth. Other reports suggest that the median house price in Perth is currently around half of that in Sydney. So when it comes to simply being able to afford to buy in the first place, Perth wins hands down.
2) Population is on the rise
According to some projections, Greater Perth’s 2 million population is due to grow by 300,000 to 400,000 over the next eight years. So whether you want to live in, rent or sell your property, a higher population means higher demand which in turn means that your property will have more value in both the short and long term.
3) Strong rental yields
The vacancy rates in Perth have seen a decline recently and it is widely believed that it will continue to do so, particularly with a steadily growing population. This indicates that the rental market is balanced and likely to remain stable for a while.
It’s also worth noting that rental income from Perth properties have recently been beating figures seen in Sydney. So, if you were to buy one property in Sydney and another similar one in Perth, you would make more money per week, month and year from your Perth property than you would from your Sydney property. Then consider the notion that you could probably afford a bigger and better property in Perth for a lower price, you can begin to understand why a Perth property would have greater overall value than a property in Sydney.
4) Economic boom
There are several factors that indicate strong economic growth for Perth and the surrounding area. With a $75 billion resources construction boom and a string of huge new projects in the pipeline across WA, the local economy is on the up. Moreover, the demand for commercial building constructions in Perth and the surrounding areas is also on the rise which indicates further growth across the region. What this essentially means is there will be more jobs, more people and therefore more demand for both long and short term housing and commercial buildings in general.
Whether you’re looking to buy to rent, find a home or invest in commercial buildings, Perth (along with WA in general) is a fantastic area to consider. With lower house prices, a steady vacancy rate, higher rental yields and a promising future in terms of population and economic growth, it really is a no-brainer to invest in property around Perth.