The Perth homebuyer is undergoing a transformation; no longer content to simply search for a great space to raise a family, they’re now hunting for a home that is also a great investment.
It makes sense, after all, a home is the average Perth property buyer’s most expensive asset. Why not embrace the same criteria and checklists as with buying a property investment?
However, this evolution is impacting heavily on investors, as this fresh homebuyer approach creates an increasingly crowded and competitive market. Coupled with more people opting to stop renting in favour of buying a home, and high demand for Perth property from international and interstate investors, the result is that as an investor, you have to step up your game – and maybe even change your strategies – to secure the best properties.
Most investors know that buying property needs to be a clinical assessment of the balance sheet mixed with a healthy dose of market research, but when things get competitive, it can spark an irrational fear that you’ll ‘miss out’, leading to cutting corners and, ultimately, an underperforming property purchase.
In this changing landscape, the fundamentals of snapping up a great investment property more important than ever – and a comprehensive checklist, as well as an independent, specialised advisor in many cases, will be your best friend.
Investor Tip: Find under-priced areas close to urban centres
As homebuyers now also turn their attention to areas where the majority of the population want to live, zeroing in on the right location for an investment property is paramount. Considering the ideal location means not only opting – where possible – for suburbs close to the coast or river, and near to business hubs but also those that have easy access to shops, transport hubs, parks, entertainment and dining options, medical facilities, day care centres and schools. These attributes will always remain high on the priority lists of those looking to rent or buy, making homes that tick these boxes ideal places to park your investment dollars.
Investor Tip: Embrace auctions
As auctions become more popular in the Perth property market, avoiding looking at homes being sold in this way is no longer an option. If you don’t feel confident in the auction arena, get a professional to help you out – it may even save you money. This is also an area many homebuyers may feel is out of their comfort zone, leaving you to gain from a less competitive environment. But auctions can be tricky, so do your research.
In the current Perth market, you need to get re-educated, stay focused and unemotional, be patient and delve into the data. For six more investor tips to help you profit in Perth, read the April 2014 issue of Smart Property Investor Magazine or visit our Media Page.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.
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