Investment Property in Perth

Investment Real Estate in Perth

Investment Property in Perth
Investment Property in Perth

Perth property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Perth .

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Search Map of Perth Investment Real Estate

Perth () is the capital and largest city of the Australian state of Western Australia (WA). It is Australia’s fourth-most populous city, with a population of 2.1 million living in Greater Perth in 2018. Perth is part of the South West Land Division of Western Australia, with most of the metropolitan area on the Swan Coastal Plain between the Indian Ocean and the Darling Scarp. The city has expanded outward from the original British settlements on the Swan River, upon which the city’s central business district and port of Fremantle are situated. Perth city is located on land on which the Whadjuk Nyoongar, the Aboriginal people of the south west of Western Australia, have lived for at least 38,000 years.

Captain James Stirling founded Perth in 1829 as the administrative centre of the Swan River Colony. It was named after the town of Perth, Scotland, due to the influence of Stirling’s patron Sir George Murray, who had connections with the area. It gained city status in 1856, although the Perth City Council currently governs only a small area around the central business district. The city’s population increased substantially as a result of the Western Australian gold rushes in the late 19th century. It has grown steadily since World War II due to a high net migration rate. Post-war immigrants were predominantly from Britain and Southern Europe, while more recent arrivals have led to a large population of Asian descent. Several mining booms in other parts of Western Australia in the late 20th and early 21st centuries saw Perth become the regional headquarters for large mining operations.

Perth contains a number of important public buildings as well as various historic sites. Notable government buildings include Parliament House, Government House, the Supreme Court Buildings and the Perth Mint. The city is served by Fremantle Harbour and Perth Airport. It was a naval base for the Allies during World War II and the Royal Australian Navy’s Fleet Base West is located on Garden Island. All five of Western Australia’s universities are based in Perth. The city has been ranked among the world’s most liveable cities and was classified by the Globalization and World Cities Research Network in 2020 as a Beta global city.

Perth is divided into 30 local government areas and over 250 suburbs, with the metropolitan boundaries stretching from Two Rocks in the north to Singleton in the south, and east inland to The Lakes. Outside of the central business district, important urban centres within the metropolitan area include Armadale, Fremantle, Joondalup, Midland and Rockingham. Most of those were originally established as separate settlements and retained a distinct identity after being subsumed into the wider metropolitan area. Mandurah, Western Australia’s second-largest city, forms a conurbation with Perth along the coast, though for most purposes it is still considered a separate city.

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The financial stability of Perth has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Perth

Renting out your Perth buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Perth are – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Perth and be prepared to change your initial outlook.
  • Thoroughly research the Perth location with a special emphasis on fringe areas outside the main Perth metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Perth.
  • Ensure that your target investment property in Perth appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Perth properties yourself is an easy option, but are these savings justifiable when you run into Perth red tape? Physis Realty Perth office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Perth buy-to-rent sector.

With our expert guidance, investing in Perth provides the secure knowledge that your money is working harder than it would in a local Perth bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Perth, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Perth property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Perth

Flipping property in Perth

Flipping property is when we advise clients to buy a Perth property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Perth market has a time to react to the renovation.

The Flipping Strategy in Perth

Investment property flipping in Perth is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Perth real estate investments are sometimes referred to by professionals as ‘distressed’ Perth real estate.

What is distressed Perth property:

  • Perth property in need of renovation
  • Perth real estate with a change of purpose and use
  • Oversold Perth property
  • Bank repossessions in Perth

Put simply, long term investors in Perth purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Perth investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Perth property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Perth use a minimum profit value of 22% when looking at potential Perth projects. The reason for this is because there are lots that can go wrong in Perth property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Perth

For luxury property investors hoping to add a superb property in Perth to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Perth, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Perth should be entrusted to only the highest-quality agency.

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