Tips for purchasing an investment property – Perth
The buzz is out – Perth is experiencing an unprecedented vacancy rate of less than one percent, leading to what experts call a rental shortage or crisis. But how does this scenario impact potential investors eyeing the market.The news is undoubtedly positive: a surge in demand from tenants seeking properties is creating an investor’s paradise. However, navigating the investment property landscape requires careful consideration. Are you chasing capital growth, or does a high rental yield align better with your goals? Is subdivision in your future plans, or do you crave a low-maintenance, hassle-free property?
Choices abound when it comes to investment properties, and I’ve distilled some insights into the pros and cons of each avenue.
In the vibrant locale of High Wycombe, two property archetypes come into play. The first encompasses older-style homes, often requiring a fair share of refurbishment and renovations. These spacious blocks open avenues for potential subdivision or front-back development. The second category includes newer homes, situated on 500 to 600 square meter blocks. While they tend to offer higher rental yields, the flip side is limited subdivision options.
Here are three key tips for navigating this dynamic investment market:
1. Leverage Property Management Wisdom: Engage your property manager. At Centurion, we boast a database of nearly 300 eager tenants on the hunt for their next home. We’re well-equipped to provide insights into what’s leasing rapidly and attracting higher rents. Tap into our repository of information for a strategic edge.
2. Secure Rental Agreements: When purchasing properties where the existing owners wish to stay as tenants, involve your property manager from the outset. Having a solid rental agreement in place is paramount. Instances abound where investors omitted lease agreements, resulting in non-payment of rent by previous owners. Protect your interests by involving your property manager right from the beginning.
3. Pre-Settlement Marketing: Post-purchase, consider advertising your investment property even before settlement. During negotiations, inquire about using the seller’s photos to attract potential tenants. Your property manager can lay the groundwork while the property is finalizing settlement, ensuring you have a tenant lined up immediately upon completion – a strategy that curtails vacancy periods.
As the real estate landscape evolves, seizing these strategic tips can position you as a savvy investor ready to capitalize on the thriving rental market in Perth. Your journey to financial growth starts here!