Investors who have been priced out of the Sydney and Melbourne markets have potentially a lot to gain by turning to Perth. Traditionally the softening of Perth’s market leads to an influx of interstate investors to the city, and is occurring especially now that the Sydney market appears to have hit its peak.
Perth’s market is at the bottom of its cycle at the moment, giving it advantages over Sydney and Melbourne for savvy investors who are prepared to do their research. Where Sydney’s market goes, Perth tends to follow, and while there is some lag in the cycle there is the opportunity to pick up promising investments at lower prices.
Most interstate investors tend to be looking for very specific opportunities when looking outside their home state. It results in the need for more thorough due diligence which tends to deter investors who are focused only on yield-type investments. Those who are willing to commit to an interstate strategy tend to want more bang for their buck, and are generally looking for capital growth and development properties where they can accelerate their equity gains through adding value.
The market softening has provided promising small development opportunities in Perth, and with thorough research and advice from a trusted professional, investors can be confident in backing a winning property in a city that continues to grow.
Perth’s market has quietened largely in response to changes in the mining industry. However, Perth’s resources industry is still considerable and expected to continue in the export-led production phase for many years.
As this transition takes place, Perth investment has opened up to previously neglected industries, such as tourism and infrastructure, and Perth’s economy is transforming independently of mining.
As Sydney and Melbourne continue to grow beyond the reach of the average investor, those with the determination to build a property portfolio would do well to turn their eyes to Perth.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.