5 Tips For Buying At The Bottom Of The Property Cycle
In recent weeks there have been a number of reports suggesting that Perth may have reached the bottom of its property cycle. With suggestions that saavy investors may be starting to make their move, we’ve put together our top 5 tips to help new investors take advantage of opportunities in 2017. The key to purchasing an investment property in any market is understanding the growth drivers. These are the locations and types of properties that will be in demand. Property investors should buy in areas where there is a strong outlook for demand for rental properties, forecasted growth in population, employment, industry and infrastructure.
While looking at population growth is important in locating the areas with the best growth potential, this must be coupled with understanding the types of homes already available, the future developments already proposed and the type of properties that the demographic of that area will be looking for. In order for you to get a good tenant, better rental returns and low vacancy rates you want your property to have a point of difference, or at least have less competition in the area. For example if you were looking to invest in an area that has a primary population of small families would a one bedroom apartment be a good investment? Particularly if there are already 30 other one bedroom apartments already vying for tenants. The ABS is a great research tool for better understanding the population and dwelling types of an area. The Local Government can also provide vital information about future land, zoning and building projects that could affect the supply of dwellings to the population of that area. IMAGES: Screenshots from the ‘Census Quickstats’ for Kwinana showing demographics and dwelling number and types. (image) (image)
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