According to Perth Now first-time investors can still get into the market. But only just. Here’s the full story.
The underlying value of property in areas favoured by investors can be largely determined by the weekly rent delivered.
This is because properties that deliver high levels of weekly rent relative to the purchase price tend to attract more investors than properties that deliver low returns.
Rental returns will become increasingly important this year as rising interest rates mean higher mortgage repayments.
For first-time investors, the challenge is to select rental properties that will deliver high rental returns as well as high capital growth.
When considering a potential buy, investors should look at the scarcity factor of the property and whether it will appeal to potential renters.
Properties close to the river, ocean and city centre traditionally deliver higher rates of capital growth than market average over the long term.