Six tips for investing in the WA property market

Property investment can be a great way to set yourself up financially and has the possibility to reap many long term financial benefits. Find out what useful tips REIWA President Damian Collins has for investors.

REIWA President Damian Collins

Property investment can help set up your future and has the possibility to deliver many financial benefits, such as a solid income stream and long-term capital growth.

However, achieving success takes time and patience, so here are some helpful tips and advice for investing in residential property in WA.

1. Search for suburbs that have yet to reach their potential

Firstly, look at suburbs that have yet to reach their full growth potential. The suburbs that have been the best performers in recent years may not be the best investment destinations in the years ahead. Instead take the time to identify areas that are likely to outperform in the long-term by looking at key demand and supply issues affecting that location.

2. Look outside of your suburb

Secondly, don’t restrict yourself to just the suburbs you are familiar with. Too many investors buy a property that is close to the place they live. While your area may be a great spot to live, it may not be the best place to invest. Take the emotion out of it and look far and wide for the best investment options.

3. Use a REIWA buyer’s agent

If all of this seems daunting, don’t forget about hiring a REIWA buyer’s agent. They have years of expertise in the real estate industry and not only do hours of research but help guide you along your real estate journey. They also manage the whole buying and negotiating experience on your behalf.

4. Keep a financial safety net

It is also smart to ensure you have set aside funds to cover unexpected costs that may arise in your property investment.

5. Avoid cross-collateralisation

When borrowing, avoid cross-collateralisation of your properties as this can significantly reduce your ability to borrow in the future. Choosing the right loan strategy from the start can maximise your borrowing capacity and give you more flexibility moving forward. Seek advice from a mortgage broker or lending professional.

6. Use a REIWA property manager

Finally, engage a professional when it comes to managing your property. Navigating Western Australia's residential tenancy laws can be tricky, so it is in your best interest to hire the services of a qualified REIWA property manager. who can handle the day-to-day requirements of your rental property and ensure the tenancy runs as smoothly as possible.

With low rental vacancy rates and strong demand from tenants, WA needs more investors in our market.

If you have been thinking of buying a rental property, now is a good time to act with rising house prices, attractive rents and healthy yields presenting excellent opportunities for investors in WA.