Investing in property is one of the most effective ways to build wealth, but it’s not as simple as picking a house and hoping for the best. Choosing the right residential investment property requires careful planning, local market knowledge, and an understanding of what makes a property profitable.

Whether you're a first-time investor or expanding your portfolio, here’s our go-to guide for buying an investment property in Perth, Western Australia.

1. Location, Location, Location

Imagine this: You’ve found a stunning property at a great price, but it sits in a suburb with declining rental demand. No matter how beautiful the house is, a vacant rental won’t generate income.

When selecting an investment property, focus on locations with strong rental demand and areas with strong infrastructure, public transport access, and lifestyle appeal. Look at vacancy rates, projected growth, and local amenities to ensure your investment will attract long-term tenants.

2. Rental Yield vs. Capital Growth

Investors typically look for one of two things: high rental yields (percentage of annual rental income in comparison to the market value) and capital growth (increase in property value). Ideally, you want a balance of both.

Determine your investment strategy and choose a location that aligns with your financial goals.

3. Understand the Local Market Trends

Perth’s real estate market has seen fluctuations over the years, with factors like interest rates, infrastructure projects, and economic trends influencing property prices. Before making a purchase, research:

• Median house prices and rental rates in your target suburbs.
• Current vacancy rates and tenant demand.
• Upcoming developments that may impact property values.

4. Property Type and Tenant Appeal

A one-bedroom apartment in the CBD may be perfect for young professionals, while a four-bedroom house in the suburbs is more likely to attract families. Consider the type of tenant you want to attract and choose a property that suits their lifestyle needs.

5. Condition and Maintenance Costs

That ‘fixer-upper’ may look like a bargain, but if it needs costly repairs, it could eat into your profits. Have a thorough building and pest inspection done before purchasing. Look for properties with modern fittings, low-maintenance gardens, and durable materials to minimise upkeep costs.

6. Strata Fees and Other Hidden Costs

For apartments or townhouses, strata fees can impact your bottom line. High strata costs can reduce your rental yield, so always check these expenses before buying. Also, consider ongoing costs like council rates, insurance, and property management fees.

7. Financing and Tax Benefits

Speak to a mortgage broker to understand your financing options. Perth investors may benefit from:

• Negative gearing tax advantages.
• Depreciation deductions on newer properties.
• Equity-building opportunities for future investments.

8. Professional Property Management

Managing an investment property yourself can be time-consuming. A boutique agency like Abode Property Group ensures your rental is well-managed, tenants are thoroughly screened, and your investment journey remains stress-free.

Final Thoughts: Make an Informed Investment

The right investment property can provide consistent income and long-term financial growth, but making the wrong choice can be costly. Research, plan, and seek expert advice to ensure your investment works for you.

Want expert guidance on finding the perfect Perth investment property? Contact us today.

08 6111 3518  |  [email protected]