Is the time right to Invest in Property in Perth?
If you’re in it for the long game, it’s always the right time to invest in property. Perth has had an incredible decade. The long mining boom has bought us so much change. The city’s skyline, its population, the lifestyle people enjoy here, the sheer vibrancy of the inner city and surrounding suburbs — it is an evolution that has made a good city a truly great city.
The state’s economy has slowed a little over the past year, but that’s potentially good news for your dream of owning an investment property. Here’s why:
Interest rates are at a record 60-year low
Using interest rates to your advantage when buying property can have a significant impact on loan repayments over time. The more you reduce your loan while interest rates are low, the less compound interest your loan will attract. Lock in your interest rate while they are low and the savings over the life of the mortgage could be the equivalent of another property! The easiest way to do this is by using an online comparison service that allows you to compare home loan rates online. This can be done in a matter of minutes and is free of charge.
The right moment in the cycle
Because the property market is cyclical, windows of opportunity need to be seized. With Perth’s current supply level in city apartments, additional incentives are available and prices are very competitive but act quickly, as these deals won’t be around forever. Investing now, before demand exceeds supply, means you can secure the best deal before apartment stock is snapped up
The long-term population increases
Despite the end of the mining boom, the city’s population is still growing strongly and the number of people living in the greater Perth area to grow from 1.83 million in 2011 to 2.35 million in 2021. Perth’s population would reach four million by 2050. That’s a doubling of the size of the city — and a lot of people who’ll need homes.
The soon-to-be completed bigger picture
The great legacy of the mining boom will be the incredible changes it has allowed the State Government to make to our city. The soon-to-be completed inner city infrastructure investments will increase Perth’s desirability, both as a destination for people from the greater Perth area and as a place for those who enjoy the buzz of inner city living to call home.
Location, location, location (and the lifestyle it affords)
It is an old real estate adage, but it holds true. If you buy close to public transport or the local café strip, in the inner city, or near any other desirable destination or piece of infrastructure, then your investment should continue to command more of a return than it might otherwise.
People want to live near certain facilities so take that into consideration before making your investment. Properties in good areas are easier to rent out and command higher returns.
Every investor should do their due diligence before buying a property, and a part of that is being aware of the economic situation and forecasts. But with a long-term view and wise decision-making, there’s no reason you can’t do well even if you’re buying in a soft market. Indeed, the market conditions can actually work in your favour.
