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Geoff Baldwin's Top 7 Areas for Rental Returns in 2016
11 Jan 2016| Posted by: Geoff Baldwin
After many years where finding a property that attracted sufficient rent to cover the mortgage and costs investors are now spoiled for choice when it comes to neutrally or even positively geared rentals according to RE/MAX Managing Director, Geoff Baldwin.
“I have worked with closely property investors for almost three decades and the late 1980s and early 1990s was probably the last time we saw such an availability of real estate in Perth and in other areas of WA offering such attractive returns”, he said.
Investors should look for areas where a larger number of tenants are looking for houses for rent Perth WA and where they can buy a property at or below the average price in the area, where a large number of tenants are looking for houses for rent and where the land value equals or better still, exceeds the value of the structure.
“Also keep in mind the age old rule that being, the lower the sale price the more chance of a higher percentage return."
Here are what I consider to be the top seven affordable areas of Perth and regional WA:
Were you can purchase a rental property and attract maximum returns on your investment:
1. Mandurah
Set to recover from its lull, has a strong rental demand and offering properties from below $300,000
2. Medina
Super affordable with a median price of around $280,000
3. Calista, Camilo, Hillman
Properties from around $275,000 and plenty of scope for growth
4. Armadale, Parmelia
Villas from below $300,000 and houses just a little more with massive rental demand.
5. Merriwa
Popular northern suburb with good sized blocks and quality housing.
6. Balga
Older properties, many with redevelopment potential and only 13 kilometers from the CBD and sought after by tenants
7. Bunbury
Now only 90 minutes from Perth via the Forrest Highway and offering a smorgasbord of low priced properties with good rentals.
There are several other attractive areas that meet the investment criteria but for anyone considering entering the investment market, there is no time like the present as the market begins to bounce back from its malaise of the past couple of years.
Contact - Geoff Baldwin - gbaldwin@remaxwa.com.au
