When it comes to property investment, the choices you make have a significant impact on your returns. According to Jeanette Bates, principal of Realmark North Coastal, investing in property is about generating a return and safeguarding and growing your wealth.
"Selecting properties based on location, infrastructure changes and emerging trends can substantially impact the property's overall value," she says.
"While many Australians tend to invest in properties within their familiar comfort zones, such as the suburb they grew up or live in, investigating further afield can often offer even greater financial advantage."
When considering unknown locations, check for good public transport, which greatly affects people's time and cost.
“When there is accessibility and amenity, it means a huge change for the area,” says Jeanette, who advises looking for infrastructure change that creates a pulse in the marketplace, such as a new airport in Busselton.
“Whether you are considering a city or regional property, this greatly impacts the area, and a rise will occur as you will find change encourages people to gravitate there.”
Forecast demand by observing shared population growth, living and working trends, and other factors such as schools, medical and other amenities.
“Find the trigger points that will increase the capital growth of a property compared to others,” Jeanette says.
“If you can anticipate where people are moving mentally and physically, you follow the flow and invest accordingly, even if it is in a regional centre you have never heard of.”
Despite being a more volatile market, non-metro areas such as the Pilbara region offer a higher yield due to growth and development.
Jordan James of Realmark Karratha says there is a sense of “watch this space”, with the City of Karratha seeking developers and builders to partner with to develop more housing. Known as ‘Project Dorothy’, the city aims to drop a house on its wicked housing problem.
“We expect 1200 dwellings over the next five-year construction period,” he says.
“The best-performing investments are low-maintenance properties such as duplexes with no pool and minimal gardens that can be bought for around $400,000 and leased for $800 to $850 per week. There is also a spike in investor demand as major projects [Pluto 2 and Perdaman mine] move closer to construction.”
Realmark Pilbara's Lynda Briggs reports a surge in demand for regional residential properties.
“Good-quality properties with high returns are in demand, particularly in Newman, with our office selling 12 properties there since early May,” she says.
“Those with government/corporate leases in place are being snapped up by eastern states investors and local investors who are missing out in the Perth Metro.”
Investors continue to gravitate towards lifestyle escapes, such as properties down south, weekend retreats in Mandurah, or condos in Dunsborough. Jeanette says this growing demand has been triggered by Perth's expanding urban landscape and a desire for unconventional residential experiences.
“Chittering, for example, is witnessing a surge in popularity due to its established presence and accessibility to urban amenities,” she says.
The southwest region of Western Australia, including Dunsborough, Yallingup, Busselton, Margaret River and Bunbury, remain hot property. Recent property trends indicate steady growth in house prices and rental yields for these areas driven by local and external demand.
“These areas offer a unique blend of lifestyle, amenities and natural beauty, making them attractive to many homebuyers and investors,” says Realmark Dunsborough’s Julie Fairclough.
“House prices in coastal towns are on the rise and investor activity is strong, focusing on properties offering good returns and proximity to amenities. Regional areas provide better value for money than metropolitan areas, and sustainable, eco-friendly homes are increasingly popular. Rental yields, in our experience, generally range between 4 percent to 6 percent, influenced by tourism and seasonal demand. Understanding the market dynamics allows investors to capitalise on the region's growth potential.”
Considering a property's physical quality and location is essential for residential and commercial investments. Understanding emerging trends, like the rise of online shopping and the need for logistic warehouses, can also uncover lucrative investment prospects. Jeanette says this forward-thinking approach can lead to high-yield investment opportunities.
“We tend to go with what we know and is proven,” she says. “But you must be observant and forecast. The astute investor is always ahead of the curve and can maximise returns.”
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