Australia’s west is emerging as the best place for home buyers and renters who want more bang for their buck, as property prices in Perth continue in a slow decline.
Home prices across Perth are dropping, due in part, to the mining downturn. This is opening new opportunities for a new breed of young first homebuyers who are turning their first home purchases into investments.
One in four first-time homebuyers in WA are buying houses as investment properties — the highest rate across the country. This growing trend sees young people sticking to renting while becoming landlords themselves. This is proving to be the fastest growing property trend among Generation Y.
The strategy looks profitable, especially with the continued drop in purchase and rental prices. Most young people want a home near the city or their place of work, but not everyone can afford a home in the city. To make up for it, they buy a property in the suburb and invest in rental properties in the city.
Professional real estate companies, conveyancers, and settlement agencies in Perth make the strategy easier for these rentvestors. Conveyancers and settlement agents help with ensuring smooth transaction between property purchases and sales, while real estate brokers and consultants advise on whether a property is ideal for investment or not.
Extra Income and Perks
Rentvesting provides a steady stream of extra income for rentvestors. Renting is still a favoured option for people who are still saving up for their first purchase, or those waiting for house prices to drop even further.
If the rent that tenants pay is more than your home loan repayments, for example, you get a surplus. You can then use this to make additional payments to your home, or to cover living expenses.
With recent fluctuations in the property market, investing before buying a home is looking to be a great strategy for first-time buyers. They enjoy numerous tax benefits of owning an investment property, while their incoming rent can cover for their mortgage and/or other expenses.
By renting while investing, consumers can live in their dream suburb and earn money on their investment at the same time. With, rents and prices on a slow, steady decline, interested investors are advised to consult with real estate professionals for proper advice on how to get the most of this trenTags: home, Home Property, property