Thinking about buying rental properties in Perth? Read on for some food for thought…
If you are wondering if Perth is a good area to invest in for real estate, almost all signals seem to point to a resounding “Yes”. If you are already established as a resident and want to invest further in the area, it might be wise to invest in a rental property. With a major shortage of rental properties, rising rental unit costs, and a demand that could result in great profits for a property owner, it could be prudent to investigate your options.
As discussed on WA Today, Perth’s property market is worth watching. If it is worth watching, it might be very worth investing in! While the global financial crisis has hit the area, most financial experts are optimistic or, at the very least, cautiously optimistic about the state of the real estate industry in this part of Western Australia.
As Perth mortgage specialists, we know the importance of the right property investments and the right timing, especially when you have a mortgage payment (or two!) to cover. Talk to us about the variety of options available to you, whether you are buying for a primary residence or are buying an investment property.
If you are buying a Perth property that will not be your primary residence, things are going to be more complex to get you approved for a mortgage. The same can be said about switching your current residence into a rental property. The right advice can help you get the optimum mortgage for your needs as well as help you be aware of important matters related to your taxes.
What sort of Perth rental property are people investing in?
Some people are building apartments in their basements. Some people are buying up duplexes or triplexes so that they can live on site and keep an eye on things in the rental units. Others are converting larger homes into multiple units or renting homes with many rooms out to students. There is a lot to consider when deciding on buying a rental property but here are some things to consider:
- Consider hiring a property manager if you will have many tenants, as it could be labour-intense to deal with repairs, maintenance, collecting rents, and so on.
- Keep a substantial nest egg to cover unexpected expenses ranging from building repairs, late rent payments, or vacancies. It is not wise to rely on rent payments 100% to pay your mortgage. Lenders carefully weigh your perceived ability to handle the unexpected when deciding whether or not to approve financing.
Talk to reliable mortgage brokers. Perth offers you many potential lenders, and dealing with a mortgage broker can help you save time and effort by getting multiple quotes from one place.