If you are looking for investment in Perth property you must first decide whether you are focusing on capital growth or rental returns.
If we consider the return from rental income we will see that units are offering higher return than houses mainly due to two facts: one, that they are cheaper than houses and two, they have a lower land component.
For investment in units under $450,000
If you are willing to make a relatively small investment in Perth property and chasing a higher rental return you should start by taking a look at my top 3 northern inner suburbs of:
- Glendalough with a 6.05% yield on $320,500 median unit price.
- Wembley with a 5.53% yield on $330,000 median unit price.
- West Leederville with a 5.36% yield on $371,000 median unit price.
Also consider my top 3 inner southern suburbs of:
- Rivervale with a 6.04% yield on $339,500
- Kewdale with 5.45% yield on $419,250
- Bayswater with 5.41% yield on $312,000
For investment in units between $450,000 and $550,000
If you are willing to invest in this price range I would start by taking a close look at Carlisle, its rental yield is currently 5.07% on $477,000 median unit price. The suburb is likely to rise with the tide of major development about to occur to Burswood which includes the new sport stadium, restaurants and 6 star hotel complex.
For investment in units over $550,000
If you are willing to invest in this price range its worth taking a closer look at North Fremantle with a rental yield of 7.62% on $667,500 median unit price and South Fremantle with a rental yield of 5.56% on median unit price of $556,875. Both of these suburbs have been good long term steady performers because their close distance to the port and all of its amenities.
Now, let us consider investment in Perth property with the focus on capital gains. You only do this if you are comfortable with holding onto your assets over a longer term basis. Having said this, let us consider some potential areas in this regard:
Scarborough- Your investment will do well here because it is a popular tourist destination and is considered as one of the most affordable beachside suburbs. Major redevelopment is going on in this area which will add to the value of your investment here
Bentley and Wilson- Your investment here will prove to be of value since it is close to Curtin University guaranteeing both decent rental returns and ongoing demand putting pressure on land values.
Bull Creek and Leeming- These are promising locations worth consideration for your investment mainly due to their close proximity to the new Fiona Stanley Hospital which is nearing completion and Murdoch University which will ensure ongoing demand.
Proposed Rezoning Areas
Whenever the zoning changes to allow greater density of development in a suburb,the result will be a lift in land values in line with the new potential. At this time, North of the river I am focussed on Marangaroo in the City of Wanneroo, to the South I like the look of Coolbellupin City of Cockburn and to the East I like High Wycombe & Forrestfield. At last check all of these suburbs were looking at 18-24 months before the new zonings went through.
The above mentioned details will help you gain the most on your investment in Perth property.
