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Thursday, 5 November 2015



Perth market priming for investors – Make sure you MAXIMISE your results


 

The Perth market currently presents an excellent opportunity for potential investors.


If you’re a first time investor, make sure you know the tricks of the trade! We looked a few ways to make sure your investment property shows some great returns

 

  • Go with what you know

Try to avoid buying in areas you are unfamiliar with, buying in an area you know gives you an advantage in seeing value.  You know where the all the schools and shops are, you know how busy or quiet a street is, you may even know what the neighbours are like! 
Going to a new area may at times seem appealing, but when you are uninformed, you have a distinct disadvantage when negotiating price.  If you do want to head into the unknown, then make sure you do your research!!!

 

  • Get the property ready to rent

Investment properties can be an excellent source of cash flow, but you have to have tenants for that flow to come!  Buying in a good area, on a big block or getting a bargain price might have great potential for capital gain; but if you are looking for cash flow, then you should ask yourself the question of would you live here?
Check the condition and age of the facilities of the home, as good as an area might be, not many people like living in a house with a run-down bathroom or kitchen.  Consider putting a little bit of money into the property to be able to charge higher rent!

 

  • Crunch the numbers

Make sure you know exactly how much money is going in to this investment! More importantly, make sure you are getting financial gain out of it!  It is not as black and white as the property price, interest repayments and monthly rent.  There are always extra costs involved: Council rates, property management and settlement costs to name a few.  They are unavoidable but in some circumstances can be minimised. 
Settlement cost is a good example.  Make sure you get bang for your buck! Don’t just use who your Real Estate agent or broker recommends, you can save hundreds, even thousands of dollars by getting a few different quotes.

 

These are just three things to consider when purchasing an investment property.  There are many tips, tricks and theories behind investing in Real Estate.  Find the right property and it will be a good move!


“Real Estate investing, even on a small scale, remains a tried and true means of building an individual’s cash flow and wealth”  -  Robert Kiyosaki


Don’t let this current buyer’s market pass you by!!


Nick Boehm

Thursday, 8 October 2015

Times are tough? More like time to buy!


It’s no secret that the Western Australian property market has seen better days



The mining industry has slowed, consumers are spending less, house prices have fallen and confidence has dropped - Perhaps is it time to buy property in Perth?


Many would be quick to jump on the bandwagon tell you that you were daft for even asking the question.

However, many of Australia’s leading property experts would beg to differ.

“In Perth, it's a classic case of confidence being below fundamentals." says Gavin Hegney, of Hegney Property Group.

“I think there's less far risk of buying into Perth today than buying into the Sydney market… the downside risk in Perth is limited”

"At some stage in the next 12 months it will be the perfect buying market in Perth."


Confidence is key! West Aussies should try not to consistently think negatively and trick themselves into a recession. The jobs that the mining and construction booms created have not all evaporated, many permanent jobs were created 

“The long term, the outlook for WA isn’t bad!”  According to Momentum Wealth director David Collins. Population may have slowed but we still have the fastest-growing population rate in the country. The market has always had cycles and we are just in a low point. The cycle will go back up!


Some say the low point of the cycle may have already been reached

Reiwa.com data shows that Perth’s overall sales number increased nine per cent to 616 sales across the week ending 6 October. This is the first upturn in sales reported for quite some time and can mainly be attributed to a significant 52 per cent increase in total land sales and a 21 per cent increase in unit sales. House sales also lifted across the week, by a more modest one per cent.


So don’t think that you can’t go near the property market in the current state of the market. With motivation, confidence and some good research you find yourself a great investment property or a bargain dream home!

Whilst you’re saving money on the buying property, you might as well save money on the fees involved too. Settlement fees state wide have dropped, with agencies such as Vicki Philipoff Settlements offering some incredibly great rates to finalise your property transaction.



Before you know it the whole state will be on the buy-buy-buy bandwagon again, it’s the people who make smart moves now that will come out on top


- Nick Boehm