Real estate investors will benefit from looking into Western Australia if they join the market today. Financing investment properties in Perth makes sense since there had been more positive economic indicators in the area. This city is climbing back up the market and offers a more accessible entry point than Sydney, where prices are still steep. Here are some tips to get in on the ground floor successfully in Perth real estate.
Learn the basics of identifying prime spots
Look for a building in the best location. Note its distance from schools, shops, and public transport; focus on places within ten to 15 kilometres from the city centre. This area is the perfect middle ground between price and accessibility today. Find other must-have features like a good floor plan and a garage or parking spot. These would make the property more enticing to prospective buyers or renters.
Take action quickly when investing
Although you need to conduct thorough research and extensive preparations, you must make your move quickly in a market like real estate. Investors who take too long to react, especially in a rising market like Perth, will have to work harder to find similar opportunities the next time around. Make your move now, and not when the market is nearing its peak, for you to get the best prices. A lower price will have a cascading effect on mortgages, home loans, and other aspects of the sale.
Welcome the chance to haggle for a price
You could negotiate a better price tag in a flat market like the one we have at Perth. At this point in the market cycle, some owners are looking to cut their losses. Gauge how much they want to get the property off their hands since it will be the driving force for how negotiable the price can become. Don’t be afraid to make low ball offers, ask for discounts, and negotiate until you get a price tag that works best for you.
Prepare for inactivity or empty properties
When you enter a flat market, you should prepare for low demand and high vacancy rates. There could be months when your Perth property would be empty. Even if you find a tenant, you might not be able to charge the rates you see in places like Sydney, which is a more competitive market. Before committing to a Perth investment, be sure that you have enough resources for home loan repayments, even without the income from a tenant.
Finding an affordable home loan is vital in sticking to a budget and making the most of your property. Whether you’re buying in an up-and-coming area or an established one, your goal should be getting good value on your mortgage.
Just as you need to be selective in screening property, you must also be discerning about the mortgage you will take. Maximise your resources, especially in a low market, since you don’t have the security that monthly rental payments bring. Finally, you can take the plunge, but only when you had done your research, consulted your books, and figured out the monthly mortgage and upkeep costs.
For finance made easy, get in touch with our experts at FinanceCorp. We provide different types of home loans in Perth; all of the Finance Managers at FinanceCorp are fully qualified, trained and experienced mortgage professionals who live and breathe finance. Whether you’re a first home buyer or a property investor, we have a plan suitable for you—contact us today for more information!