I’m not one to subscribe to so-called ‘hotspots’ because I believe property investment requires a long-term outlook (i.e. 7-plus years for direct residential investments).
Indeed, the term ‘hotspot’ is typically used by spruikers who espouse get-rich-quick schemes or is simply a short-term phenomenon in a market that doesn’t provide sustainable returns.
However, when it comes to property investment, location plays a major role in the level of success so naturally there are going to be suburbs that provide investors with better returns over others.
And these locations will change over time as areas transform through new infrastructure, rezoning, demographic shifts or gentrification, for example.
Here are 3 Perth suburbs investors need to consider when buying an investment property in 2017.
ScarboroughThis beachside suburb will benefit from the state government’s $100 million-plus redevelopment of the area, which has included rezoning in some areas for higher density development, which is also spurring private investment. The public perception of the suburb is slowly changing also, as it was once viewed as a dingy, run down area but now has more young professionals moving to the district amid the urban gentrification.
Bibra Lake (and South Lake)This inner-southern suburb, along with neighbouring South Lake, are subject to rezoning that will create more higher-density housing options and help to revitalise the area. The suburbs are also well located nearby the Kwinana Freeway providing good access to the Perth CBD, the Murdoch Activity Centre, which has been identified by the state government as a strategic employment hub, and Cockburn Central, which offers good-quality amenities.
BassendeanThis inner-north-eastern suburb is benefiting from urban gentrification and a change in public perception as more young professionals move to the area. The suburb also offers good affordability, is in close proximity to the Perth CBD (being just 8 kilometres away), comprises 3 train stations linking to the Perth CBD and borders the Swan River.
While these suburbs provide good opportunities for investors, there’s never a one-size-fits-all approach to property investing.
That’s why investors need to target the right types of properties that work in conjunction with their individual investment strategy (i.e. cash flow requirements, risk profile, investment goals etc).
Damian Collins is the founder and managing director of property investment consultancy Momentum Wealth. Offering market leading research and advice on the Australian property market, the company helps clients accelerate their wealth through property investment by assisting them in the strategic planning, financing, acquisition, management and development of their commercial and residential investment properties. Damian has completed a Bachelor of Business at RMIT University and a Graduate Diploma in Property at Curtin University. Damian is a board member of the Property Investment Professionals of Australia (PIPA) and is the Deputy President of the Real Estate Institute of Western Australia (REIWA).