With a number of factors playing a part in determining a good location to invest, these Western Australian towns are gaining increasing attention.
Deciding where to buy an investment property isn’t a simple process. It’s not an exact science and there are many different factors to consider with emotion and instinct also playing a part. And that’s why so many investors – even people who’ve bought and sold several different properties – turn to the professionals for guidance.
If you’re looking to buy property in Perth, think about the following points – and then you’ll see why Armadale, Balcatta, Subiaco, Victoria Park and Cottesloe are among the top five investment suburbs in the WA capital.
The real estate mantra of ‘location, location, location’ is just as valid whether you’re buying a primary residence or an investment property. For example, property along the Perth coast and in riverside areas generally command a premium and are more likely to be the target of investors looking to buy a family home, whereas suburbs closer to the city centre and the less affluent areas would be more appropriate for rental properties.
Lifestyle is an important consideration when deciding where to buy. Just as someone may want to buy into a suburb that is close to their school or close to the beach, another may prefer an area that offers them the opportunity to walk to restaurants and cafes. Lifestyle is a personal consideration, but a crucial one when deciding on where to invest.
Infrastructure and amenities are also important aspects to consider when choosing where to invest – regardless of whether you’re buying for yourself or buying as a landlord. Access to public transport, community and sporting facilities, shops and medical services, schools as well as entertainment and eating out options are all things to consider when choosing a suburb.
Every savvy investor knows how important research is. Statistics on property transactions, the median price for the area, sales history, rental returns, etc, are all important factors that should have an impact on your buying decision. After all, capital growth is the holy grail of property investment, so it’s vital to make informed decisions. The internet is a good source of data, as are real estate agents in the area and, if you’re looking to buy a rental property, then you should talk to local Perth property management companies – they’ll have a good idea of the supply/demand situation.
Having said all that, let’s look at five of the top suburbs for property investment in Perth.
While Armadale hasn’t enjoyed the most favourable of reputations, it is generating favourable returns for investors. In 2014, there were 350 house sales, with the median price rising by 7 per cent to $325 000. There are many positives to living in Armadale including good access to transport nodes, affordable homes and quality amenities as well as government investment in infrastructural upgrades.
This suburb is only 12 kilometres from the CBD and with a median house price of around $540 000, it is an affordable option with many pluses. Its central location makes it a popular choice for those who want the convenience of living close to modern amenities but who also desire a bit of space – and with Perth traffic congestion worsening by the day, any suburb that’s close to public transport is going to be on investors’ radar.
As a lifestyle option, ‘Subi’ is a highly sought-after destination. Close to the city, it offers a range of accommodation options as well as a variety of sporting, eating out and leisure options. It’s also the focus of a significant level of redevelopment such as China Green and the old Ace Cinema site and with King’s Park, the Swan River, the soon-to-be-opened Perth Children’s Hospital and UWA a stone’s throw away, Subiaco is ideally positioned for families, retirees, students and young professionals.
4: Victoria Park
At only 4 kilometres south of the Perth CBD, the inner-city suburb of Victoria Park offers investors a rare opportunity to match convenience with character. The suburb is on the rise, and its tree-lined streets, character homes and bustling cafe strip on Albany Highway are just three of the attractions that are capturing the attention of savvy real estate investors. The close proximity of Curtin University and the TAFE campuses also offer good opportunities for rental accommodation – just ask any property management company in Victoria Park!
‘Cott’ is one of Perth’s traditional high capital growth suburbs and although entry costs are substantial, properties have maintained their value – even during the economic downturn. The median price of a home in Cottesloe is close to $2 million, with weekly median advertised rent in Cottesloe around the $1,000 mark for a house and around $500 for a unit. The suburb is conveniently located between Perth and Fremantle and its laid-back beach lifestyle attracts a diverse mix of residents.
Cindy Knight is the general manager of Time Conti Sheffield in Victoria Park. Cindy has been working at Time Conti Sheffield since 2002 and during this time has seen many changes in the property management industry in Perth.
Cindy is passionate about delivering the best service to every property investor that walks through the doors of Time Conti Sheffield and her insider knowledge of the local real estate market means she is an expert in her field.