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Ask Peter - What are the best house prices Perth has to offer?

The house prices Perth has to offer

One of our clients asked recently about optimal house prices when purchasing an investment property. They also inquired if they were better off searching for the higher house prices Perth offers to generate a higher rental income, or more affordable house prices that may not earn as much?

It’s a good question and there is no simple answer because it depends on a few key considerations:

 

  • The location of the property
  • The style or design of property
  • If the property is new or established
  • House prices
  • How much you borrow

The more expensive property prices Australia offers are generally located in established areas where there is less opportunity for significant capital growth. These house prices are affordable to a smaller segment of tenants so they may be harder to rent and unless you are in a very secure financial position, you will generally have to borrow a larger amount of money, which places you in a position of higher risk.

If you are buying established, you may not be eligible to claim depreciation depending on the age of the building and the property may have a high number of maintenance issues. This can be avoided with building a new property or one that has been built using low maintenance materials, thus keeping house prices low.

When it comes to the house prices Perth offers, I think there are a number of sound investment opportunities ranging from just under $400,000 up to $600,000 which are well located and likely to attract a quality tenant, providing strong returns. These are some of the more competitive property prices Australia offers. House prices in this bracket are in high demand from tenants and if managed correctly, they can potentially cost the investor no more than the price of a cup of coffee per day.

Again, I encourage you to contact a property investment specialist before making any final decisions to ensure your investment strategy is right for you but with the right research, finding one of the good investment property prices Australia offers can definitely have great long term rewards.

Plus, our Assist Kit offers plenty of tips of how to get started.

If you have a question, I'd love to hear from you at AskPeter@investorassist.com.au

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