Investment Property in Perth | ScaleMortgage

Investment Property in Perth: Are you considering investing in real estate in Perth? With its growing economy and strong rental market, Perth is a popular choice for property investors. Before starting real estate investing, it’s crucial to know the local market and have a solid plan.

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Perth skyline at sunrise, symbolising growth in real estate investment opportunities with ScaleMortgage investment property loans.
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This article will explain the benefits of investing in Perth. Furthermore, it will provide information about the current condition of the local real estate market. We will explain how ScaleMortgage can assist you in obtaining the most favourable loan rates for your property.

Why buy an investment property in Perth?

Perth is the capital of Western Australia. It has lovely beaches, a lively culture, and a strong economy. Additionally, it houses various prominent sectors such as mining, agriculture, and tourism. Perth’s diverse economy keeps its real estate market stable, making it appealing and full of investment opportunities.

Strong Rental Market

Investors like Perth because of its strong rental market for profit. With a vacancy rate of just 0.7%, Perth has one of the lowest vacancy rates in Australia.

Many people want to rent properties. Investors can easily find tenants. They can make money from renting out properties regularly.

Affordable Property Prices

Compared to other major cities in Australia, Perth offers more affordable property prices. This is a great place for new investors or those wanting to grow their property collection without spending too much money. Additionally, with the current low interest rates, now is a great time to invest in Perth real estate.

Potential for Capital Growth

Perth’s real estate market has seen steady growth over the years, but right now its booming. The top suburbs seeing north of 25% capital growth over the previous 12 months.

The city’s population is growing. The economy is strong. This means property values are likely to continue rising in the future.

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The Current State of the Perth Real Estate Market

Before investing in any property, it’s important to understand the current state of the market. Here is a concise summary of the current state of the Perth real estate market in 2023.

Property Prices

The median cost of a house in Perth is $600,000. The average unit price is $412,000. This information relies on the most recent Reiwa data. Corelogic reports a 17.7% increase year on year for the price of all dwellings.

While these prices may seem high, they are still more affordable than other major cities in Australia.

Rental Yields

Perth also provides appealing rental returns for investors. The present rental yield for houses in prime locations is over 6%, while for units it’s over 7.5%. This implies that investors can anticipate a robust return on their investment via rental earnings.

Suburbs to Watch

Some of the top suburbs to watch in Perth for property investment include:

  • Baldivis: This suburb offers affordable property prices and a strong rental market, making it a popular choice for investors.
  • Ellenbrook: With a growing population and new developments, Ellenbrook is a promising area for property investors.
  • Joondalup: This is a suburb with multiple universities and a high demand for rental properties. This makes it a good choice for investors looking to invest in student housing.

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Securing the Best Investment Loan Rates

Securing the right investment property loan is crucial for investing in real estate. This is where ScaleMortgage can help. We are a leading mortgage broker in Perth. We work with many lenders to find you the best rates for your investment loan on your property.

Expert Advice and Guidance

Our team of mortgage brokers can provide you with expert advice and guidance throughout the loan process. We’ll take the time to understand your investment goals and help you find a loan that meets your needs and budget.

Access to a Wide Range of Lenders

At ScaleMortgage, we have partnerships with over 30 lenders, including major banks and smaller lenders. This gives us access to a wide range of loan options, allowing us to find the best investment loan rates for our clients.

Negotiation and Support

We will talk to lenders for you to get the right loan terms and interest rates. We’ll also provide ongoing support and assistance, making the loan process as smooth and stress-free as possible.

Types of Investment Loans

For investment loans, there are several options available. Here are some of the most common types of investment loans in Perth.

Interest Only Investment Loan

An interest only mortgage lets you pay only the interest on your loan for a certain time, typically 5-10 years. This can help reduce your monthly repayments and improve your cash flow. Please remember that it will be necessary to repay the principal amount at some point. Having a clearly defined plan in place is essential when the interest-only period reaches its conclusion.

Principal and Interest Investment Loan

With a principal and interest loan, you pay back both the amount you borrowed and the extra money charged for borrowing. This type of loan is more common and can help you pay off your loan faster, but it also means higher monthly repayments.

Line of Credit

A line of credit is a type of loan that allows you to access funds up to a certain limit. This can be useful for investors who want to have access to funds for future investments or unexpected expenses.

You will incur interest charges on the full amount of the line of credit. This will occur irrespective of whether you utilise the entirety of it or not. Please keep this crucial detail in mind.

Tips for Investing in Perth Real Estate

Here are some tips to keep in mind when investing in real estate in Perth:

  • Before buying property, research the local market, prices, and rental demand to make smart decisions.
  • Have a clear plan: Make sure you have a solid investment plan with your budget, expected returns, and possible risks.
  • If you are too busy or unsure how to manage your investment property, consider hiring a property manager. This professional can take care of all the tasks for you. This will allow you to focus on other priorities. Hiring a property manager can save you time and stress.
  • Stay updated on the Perth real estate market and adjust your investment strategy accordingly.

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Is Perth good for property investment?

Investing in property in Perth is a good idea. The economy is stable, the population is growing, and the rental market is strong. Consider these factors when making your decision.

Do thorough research before making a decision. Consider the location and potential rental income. Seek advice from experts in the field. Develop a clear plan for managing your investment over the long term.

How much deposit do I need to buy an investment property in Perth?

When buying an investment property in Perth, the deposit required can vary based on the lender and property type. Most lenders require a minimum deposit of 10%, but some may require more. Consult with a mortgage broker or financial advisor to determine the required deposit amount based on your specific circumstances. Research and professional advice are key to making a smart investment decision aligned with your financial goals.

Which suburb is the best to invest in Perth?

When picking a suburb to invest in Perth, think about location, property prices, rental demand, and growth potential. Popular areas like Subiaco, Claremont, and Nedlands have good amenities and rental income. Baldivis, Ellenbrook, and Byford are affordable with growth potential. Consult with experts for advice.

Wrapping it Up

Investing in real estate in Perth can be a lucrative opportunity for investors. With its strong rental market, affordable property prices, and potential for capital growth, Perth offers a promising investment landscape. With ScaleMortgage, you can get our best investment loan rates for your property to reach your investment goals. Contact us today to learn more about our services and how we can help you with your investment property in Perth.

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Thomas Makin

Thomas Makin is the Principal Mortgage Broker and Co-Founder of Scale Mortgage. He has a Diploma in Finance and Mortgage Broking Management and is accredited by the Mortgage & Finance Association of Australia (MFAA).

Thomas is known for his skill in providing tailored mortgage solutions. He helps homebuyers and investors across Australia, showing a strong commitment to professionalism and high industry standards.

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