With Western Australia’s population on the rise, it’s now up to the everyday property investor to help bridge the gap between the constantly evolving population and the never ending housing shortage.
Back in 1999, Australia was projected to hit 24 million people by 2033. In reality, we have already hit this number, almost 17 years earlier than predicted.
But it’s Western Australia in particular who is expected to continue its reign as the fastest growing state, facing a housing crisis that could last well over a decade.
Projections released by research firm McCrindle predict Perth could overtake Brisbane as Australia’s third largest city in 14 years and be home to five million people by 2055.
What this means is that demand for more housing in Western Australia will keep increasing, so much so that the government won’t be able to keep up with funding.
Many years ago, the government realised they would need help from the private sector to deal with the housing shortage and came up with an initiative to help encourage property investment.
These incentives effectively treat property investment as a “business”, providing tax benefits to investor’s which let them claim all expenses associated with running their “business”.
Just some of the expenses that can be claimed include advertising for tenants, bank charges, borrowing expenses, capital works, cleaning of the property, council rates, depreciation, gardening, insurance, interest expenses, land tax, legal expenses, property agent fees and commissions, repairs and maintenance and water charges.
Being able to claim these expenses makes owning an investment property much more affordable, and one of the safest investment opportunities available today.
With the market slowing down, now is the perfect time to jump in and grab a bargain in one of Western Australia’s property investment hotspots (areas which have been identified as having potential for strong short or long term growth).
Although some people are wary of investing during an economic downturn, it’s actually a great opportunity to purchase a property at a bargain price and sit back while the market gradually improves. Other investors/home owners will eventually push prices up which means you can enjoy massive capital gains at the top of the cycle.
Another way of putting it is “would you rather shop for your Christmas presents during the sales or after, when things are a lot more expensive”? It is exactly the same with property investment … if you purchase when prices are low and hold on to your investment for the long term then you will reap the rewards.
With the largest population growth occurring in the outer suburban areas of Greater Perth (and the best tax benefits offered to investors who purchase new homes) many of our recommended hotspots include house and land packages in Perth’s Northern and Southern corridors such as Aveley, Baldivis, Eglinton, Ellenbrook and Hilbert.
If you would like more information on the benefits available to property investors or you'd like to discuss how we can help you purchase an investment in a property hotspot, my team of Property Investment Specialists would only be happy to speak with you. We can help you get started for less than a coffee a day, so it may be easier and more affordable than you think! Click here to see what could be possible for you