If you live in WA, it is highly probable many of you sat down to breakfast yesterday morning and flicked through the Sunday Times whilst enjoying a leisurely breakfast and a cup of coffee in the morning sun.
No doubt many of you gave a jubilant fist pump in the air when you jumped to the sports section and read about Mitchell Johnson’s current annihilation of the South African cricket team (especially on the back of our recent Ashes win), but many of you probably choked on your toast and vegemite when you skipped back to page three and were confronted with the headline “Perth’s price is $600k”.
According to the article in the Sunday Times, the median house prices Perth offers are forecast to hit $600,000 by the end of the year which means the house prices Perth has are the second highest behind Sydney (at $655,000) and make our property some of the most expensive in the world, creating difficulties in deciding where to buy an investment property. The British may not have claim to the Ashes sitting on their mantle piece but at least they can afford a mantle piece with the average house price in the UK only costing £176,500 GBP ($327,450 AUD), roughly half of the cost of the house prices Perth has.
And it’s not just housing. The cost of a pint of beer in the UK is around £3 GBP ($5.55 AUD) where as a beer or wine in Perth averages $11.12, making it the most expensive in Australia (and a costly day out at the cricket).
Plus if you happened to open Saturday morning’s paper too, there was an article quoting agents who believe the house prices Perth offers in the $600,000 - $700,000 bracket are now being snapped up, sometimes for tens of thousands of dollars above their asking price, by investors and buyers trading up to bigger homes. This does not make it easy to decide where to buy an investment property.
For many West Aussies, the house prices Perth charges are starting to put the investment properties Perth offers out of reach. But before you sell your baggy green on eBay and pack your suitcases bound for Britain thinking that’s where to buy an investment property, you might be surprised to know not all properties are as expensive as they seem. All you need to do to start getting some runs on the board to start batting below the average. But that probably goes against everything your cricket coach ever taught you, right? Well, maybe it’s time for a new coach.
At Investor Assist we can show you that paying one of the lower house prices Perth offers has the potential to earn you more. You should consider this when deciding where to buy an investment property.
Why compete with other investors and potentially offer thousands of dollars above the asking price for the expensive investment properties Perth offers if this will immediately put you on the back foot? The extra money you spent to purchase the property is money you immediately need to make up somewhere else and it is money that comes out of your back pocket. You are better off to spend less on the lower house prices Perth offers on a property that can earn you a strong rental return.
For example, Investor Assist has researched where to buy an investment property and found hundreds of areas in WA and identified a number of ‘hot spots’ or suburbs that we believe will be high growth areas in terms of the house prices Perth has to offer. What’s more, thanks to the backing of our parent company, the ABN Group, we have access to some of the country’s most respected and experienced builders, financiers and trades to build you a high quality property for a very affordable price. Plus we have a pretty impressive strike rate when it comes to designing and constructing properties specifically for investors and tenants.
Most importantly, our house and land packages start from $339,000 which is $261,000 below the forecast WA housing average which means you will already have runs on the board before the first ball has even been bowled. Some of these houses are located within suburbs with high British and South African populations, especially in the northern suburbs, making for some of the more exciting investment properties Perth has to offer. At least your tenants can look forward to some exciting games of front yard cricket with the neighbours when summer comes around!
So if you would like to find out where to buy an investment property with some of the best house prices Perth offers, and that will perform above average for less than average (plus open the Sunday Paper without choking on your toast and vegemite), the team at Investor Assist is only too happy to help.
Make an appointment for a free one-on-one session with one of our Property Investment Specialists by calling (08) 9200 7200 or email firstname.lastname@example.org