Tips for Investing in Real Estate
Monday, 2nd November, 2015

Four Important Tips for Investing in Perth Real Estate

Anyone with a stable income can add to their earnings by purchasing investment properties. A rental property in Perth can bring you extra income every month while building a larger portfolio of equity that adds to your personal worth.

The only key is to be clever about your investment to avoid unnecessary risk. Here are some tips courtesy of HERE Property that can make real estate investing easier, more profitable and more exciting than you dreamed:

 

1. Develop a Business Plan

There is a lot more to property investment than simply buying a house and watching money come in. You will want to be confident moving forward that your property investment will end up helping rather than hurting you, preferably with specific scenarios in mind.

Answering questions like the ones below can help you grasp the full perspective of what your investment means and plan accordingly.

  • How long do I expect to wait to earn my initial investment back?
  • Will I add more properties as time goes on?
  • Do I plan on selling the home after 5 years or 10 years or keeping it long-term?
  • How will I prepare for maintenance or unexpected expenses?
  • What types of renters/ home buyers are ideal for me?

2. Learn Your Market

Once you have a long-term plan in place, you can start learning about your target demographic. Pensioners, young families, students and working class individuals all have different needs and expectations for their homes. Do a little first-hand and online research to learn more about whichever group you think would be the easiest to work with and bring you the most profit.

3. Find Your Perfect Neighbourhood/Suburb/Area

Perth real estate has a huge amount of diversity, and it is only getting more so as new suburbs develop into urban enclaves. Learn about the area on the Perth fringe that you think has the perfect combination of potential growth and your ideal demographic to work with. Articles like this one from Perth Now can be of some help.

You may be surprised to learn just how different each area is. Real estate in Subiaco is quite different from real estate in North Perth, and so on. Do your research on an area that has a high demand from renters — which are usually within a five or so kilometre radius of central hotspots — but that will also see overall growth and development within your business plan period.

4. Know What You Are Going to Do After You Close the Deal

So you tracked down the perfect house or apartment in the perfect suburb, but what are you going to do after you buy? Managing property long-term requires clever financial preparation as well as regular week-to-week duties. Knowing things like how you are going to collect rent or address repairs can help managing your investment become a part of your routine, not an interruption to it.

 

Many people at this point consider using a property management service to make their life easier. Businesses like HERE Property will screen tenants, collect rent, take care of property chores like mowing the lawn and even hire maintenance crews based on the level of service you need. The autopilot nature of businesses like us makes investing in rental property in Perth practically feel like the money rolls in on its own.

Take Away!

You can learn more about HERE’s property management services or even let us help you find Perth investment property listings by clicking on either of the preceding links.


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