OK, so we all know that the property market is crazy right now, but that doesn’t mean property ownership is completely out of reach. For the eastern states, house prices are through the (figurative) roof; for WA, it’s impossible to find a place to rent.
Cue ‘Rentvesting’: the emerging trend of living where you want, and buying where you can afford. For those in the know who want to jump into the property market for their future home (or all that sweet, sweet rental income), but aren’t willing to give up their expensive lifestyles in Melbourne or Sydney, Perth is the place to buy.
Rentvesting can give you the best of both worlds. You can buy a property and rent it out to cover some or all of your ownership costs, while continuing to rent in the area you want to live.
Rather than spending obscene amounts for a fixer-upper in Sydney that you’re stuck with for the next 30 years – further from work and amenities and convenience than a place you could rent – using that money to get way more in the Perth property market is a no-brainer.
Build your investment portfolio for your future, without giving up your lifestyle.
Now, let’s be real: most people looking to buy in WA are from WA, even when it comes to interstate buyers. Either they were born in Perth and have moved for work or lifestyle, or they have family here. There’s not too many eastern states' natives wanting to move ‘away from the action’, but it does mean that they’re ignoring a huge opportunity for passive income and building a property portfolio.
The key for success is that by maximising a higher salary available in bigger cities you can then choose to invest in Perth, where the median house price is lower (with the possibility that the investor may one day want to live in WA), while still living where you want to live.
Where should I invest?
For all the jokes made about Perth being our most isolated city, it’s a fact that the west coast is not only more affordable to buy right now when compared to the other capital cities, but is also growing (in both population and rental demand) at a crazy rate. With a booming mining industry, there’s been a desperate call for people to join the skilled workforce from interstate and internationally, and all these people need somewhere to live. Unfortunately for them, rental vacancies are at 0.4 per cent right now, with developers scrambling to provide.
When compared to similar options in other cities, the value, location and tax advantages of Perth property just make sense. As a general rule, there is more rental stock available in eastern states’ markets, which allows people to live in an area where they may not be able to afford to buy in; conversely for those property owners, return on investment is lower. Because of the rental shortage and booming demand in WA right now, it’s much easier to have your investments' mortgage covered by rental income – meaning the place basically pays for itself.
Plus, for those who decide to buy an investment property in Perth; depreciation, maintenance costs and mortgage interest is all tax deductible.
Pick a property that works for you
Of course, not all properties are created equal. For a city (and state government) rapidly encouraging urban infill like Perth is, investing in an apartment makes the most sense.
Aside from the convenience of being close to the CBD and the major workforce areas, the diverse options for dining and shopping, and the luxury amenities designed to enhance residents’ lifestyles, apartments typically provide a stress-free, low-maintenance experience for property owners and renters alike – the roof is unlikely to collapse, and garden upkeep isn’t a worry.
For buyers of Finbar apartments, every investment comes with access to an exclusive, low-cost property management service, Finbar to Rent. This service tries to make your entire investment journey as stress-free and cost-effective as possible while offering stunning apartments for buyers of all types.
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To find out more about Finbar to Rent, click here +
Any information or advice is intended to be of a general nature only and has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries and consider whether the advice is appropriate for you.