How to Buy Investment Properties in Perth with Minimum Risk

As a property management firm that handles a lot of investment properties in Perth, we make it our responsibility to keep abreast of all factors that affect returns on investment property. With the current market in what appears to be a perfect position for property investment in Perth and surrounding areas, a lot of people are getting ready to enter the market.

Investment Properties Perth
However, we must remind you that there is always risk involved in any investment. Though Free Sale Appraisal at most times in history, you still have to minimise your risk if you want to be a successful investor. Here are a few tips to help you minimise your risk.

Patience is a virtue, especially in real estate

A lot of investment professionals recommend holding on to any property for at least five years. Many recommend ten. Our belief is that the longer you hold on to a real estate investment, the more money you can make. Your highest investment is in the beginning, in the form of stamp duty, settlement fees, and deposits. It takes awhile to make that money back.

With increasing rental prices it is often not long before the rent exceeds your costs. The sooner you can get your property to be neutral or positive geared the less pressure there is for the property to perform and you can comfortably wait out the cycle for the next growth phase to come around. History has shown that properties double every 7-10 years but it can be a long wait in between if the property is costing you money.

Due Diligence

You can’t afford to buy a property without researching it first. You need to research rental yields, vacancy rates, and capital growth trends. Then, you also need to find out what the future holds for the area. Are there any large projects, such as industrial parks, factories, or infrastructure that is about to be built in the neighbourhood?

Your investment’s future is connected to the neighbourhood’s future. Make sure both are solid.

Forget About Flipping

We are looking for a safe investment with long-term returns. Flipping is an iffy investment where you can lose your shirt or maybe make short-term income. It requires a high degree of skill and is not for the passive investor.

Professional Property Management

Keep your property in good repair. Make sure you aren’t undervaluing your home’s rental potential. A great property management firm does this for you. Call 1300 472 427 today.

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