Top tips for Perth residents looking to enter the property market in 2024

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If you're a Perth resident who's looking to enter the property market, you're in luck.

Perth has been ranked one of the best cities to invest in property in the southern hemisphere, thanks to its good land availability, regional economic growth potential, continuous growth in property prices, and growing rental yield on investment properties.

As a newbie, property investment can be an incredibly intimidating, confusing and overwhelming topic to grasp.

If this is your first time dipping your toes into the investment property waters, you'll want to stick around for the rest of this article.

Today, we share seven top tips for Perth residents looking to enter the property market in 2024. Read on to find out more.

If you are new to the property investment game and are looking to gain a footing in 2024, one of the first things you should consider is seeking professional advice. Investing in property is a big financial and personal decision, and seeking the advice of a financial planner that specialises in the field can help you create and achieve your long term goals, and find the best way to structure finances with your goal in mind.

Thankfully, there are numerous financial advisors in Perth that are ready to provide you with top notch investing advice and suggestions, so be sure to reach out if you are looking to get a headstart on building your property portfolio.

Another key component of ensuring that your property investment favourites in Perth are successful is to set your budget early in the game, and to be honest with yourself about how much of your wealth you are willing to invest into your portfolio. It's not about how much you should spend -- it's about how much you can spend.

Setting a clear budget and determining all relevant costs and fees associated is a vital component of successful investment. Jumping into a property purchase without considering all financial implications is a seriously unwise move, and may lead to unnecessary financial burden down the line.

For starters, work out your annual salary and income, track your spending against forecasts using a reliable system, and be ready to update and adjust your budget accordingly. Remember that you should always avoid overcapitalising, and be sure to maintain a buffer for repairs, ongoing maintenance, periods of vacancy, or where your primary income might be subject to unforeseen changes.

It is no secret that location is key if you are looking to be successful in the property investment game. The location or neighbourhood of your chosen property is absolutely key to your success, so we encourage first time investors to do as much market research as possible.

Generally, the location of a long-term property investment should be in an area where rental properties are in high demand. Ideally, your chosen property should be in close proximity to amenities such as public transport, shopping centres, universities, schools and other in-demand facilities. The more your property has to offer, the higher the chance of attracting quality tenants and securing a decent capital growth.

Moreover, if you are planning to move into the property in the long run, you'll want to choose a suburb or location that you will want to live in eventually. To get the ball rolling, we recommend heading to this article that features the best 7 suburbs to invest in Perth in 2024.

As a first time investor, it is vital that you do ample amounts of research into various properties before making any commitments. As tempting as it may be to "get it over and done with", rushing into your investment is never a wise idea. When researching, it is important to know exactly what type of investment property you are looking to buy. The answer to this question will depend deeply on your goals and overall investment aims.

For example, if you are looking to make a profit from flipping a home, you may want to do a ton of research into rundown properties that offer great potential. Alternatively, if you are looking for an investment property to rent long-term, be sure to filter through properties that offer a variety of amenities and perks that will attract high quality tenants for years to come.

At the end of the day, the moral of the story is to avoid rushing into any decisions. Do you research, compare various properties, and make the most informed purchasing decision with your long-term goals in mind.

If this is your first time investing in property in Perth or in wider WA, you don't want stamp duty to catch you off guard. In the simplest of terms, stamp duty is a tax payable when you buy a property. The amount you pay varies from state to state, as well as the value of the property. Essentially, it's a tax charged by state and territory governments to transfer the ownership of a property to someone else, and stamp duty applies to the buyer, not the seller.

You should always factor this amount in when budgeting for your investment, especially since there are no stamp duty exemptions or concessions for investment properties in Western Australia. Calculate the amount of stamp duty you can expect to pay in Perth here.

When deciding on whether property investment is the right move for you, it can be helpful to consider the ongoing costs associated with your investment. Some of these costs include (but are not limited to) property maintenance, strata or body corporate fees, emergency repairs, landlord insurance, land tax, council rates and more. These are the costs that you will weather throughout the life cycle of your investment property, from when you buy it until you sell it.

On top of these ongoing costs, investors should also be ready to maintain a contingency fund worth several months' loan repayments for the property. This amount acts as a buffer in the event a tenant defaults on rent repayments or you experience a period where the property is vacant.

All of these costs can add up to a significant amount each year, so be sure to take this into consideration when choosing your ideal investment property. For example, body corporate fees can be avoided if you choose a torrens title property over a strata title. Ultimately, the choice is up to you, so be sure to weigh out your options before making any commitments.

Last but not least, deciding who will manage your investment property is a vital component of successful investing. Do you plan on using a property manager or managing things yourself?

Most investors choose to utilise the services of a property manager as they will be able to take care of the day-to-day running of your investment. They may be able to find you a tenant and vet the tenant's profile, on top of conducting regular rental inspections to ensure that your investment is being kept in good condition.

Moreover, if there is a problem to report, tenants will contact the property manager, not you. This can save you a lot of hassle in the long-run, so it's always a good idea to consider looking into property management services.

And there you have it - seven expert tips for any Perth resident who is looking to enter the property market in 2024.

We hope that this article has equipped you with some valuable knowledge that you can utilise in your brand new property investment journey. We wish you all the best.

Have a couple of tips of your own for Perth or WA residents who are looking to dip their toes into the property market?

Be sure to leave your tips, ideas and suggestions in the comments section below.