Where to invest in Perth if you want steady occupancy

One of the most important things to consider as an investor is occupancy. When you don’t have someone paying rent, it will be up to you to cover the mortgage and other holding costs in full, which will put pressure on your finances.

The good news for Perth investors right now is that rental vacancy is at a 40-year low.

However, if you’re looking to invest or expand your portfolio, you need to think with the long-term in mind. When the pendulum swings and vacancies rise again (you never know when this will happen), your property needs to appeal to renters and stand out from the competition.

Here are some of the factors to keep in mind when selecting an investment property in Perth.

Student-friendly properties

While a freestanding house is always a good investment, if you are buying an apartment, townhouse or unit, there is a higher chance that you will have student tenants. Because of this, a suburb close to one of Perth’s universities is a wise choice.

If you are buying a smaller place, consider:

• ‘Golden triangle’ suburbs close to UWA: Subiaco, Claremont, Shenton Park, Nedlands and Dalkeith
• Mount Lawley/Mount Hawthorn/Inglewood/Bedford or Joondalup/Heathridge/Edgewater for Edith Cowan students
• Bentley for Curtin University.

Don’t forget the TAFE locations, either. Basically, any suburb that provides an easy ride on public transport to a major tertiary institution is suitable for an investment apartment. Keep in mind you may have a gap between tenants every few years as they graduate and move elsewhere.

Close to hospitals or larger aged care facilities

Healthcare workers often have a smaller budget and want to live close to their workplace. If you purchase a quality apartment or unit near one of Perth’s hospitals, you should be able to find a tenant who has a steady job and appreciates having a cost-effective place to live in.

Places to consider could include:

• Subiaco for St John of God Hospital Subiaco
• Mount Lawley for St John of God Hospital Mount Lawley
• Mount Claremont for Graylands Hospital
• Nedlands for Perth Children’s Hospital, Sir Charles Gairdner Hospital and Hollywood Private Hospital
• West Leederville for West Leederville Private Hospital
• Perth CBD for Royal Perth Hospital

Nurses and other healthcare workers often make excellent, reliable and long-term tenants.

Close to public transport

Being close to public transport is important for tenants who can’t walk to work or university.

Consider properties near bus and train lines. While the property doesn’t have to be adjacent to a bus stop or across the road from a train station, there should be at least one option within walking distance. The next best option is to be a few minutes’ drive from a train station or bus interchange with plenty of parking.

If you’re not from Perth and you want to invest, keep in mind that Perth is a very train-focused city. The train lines make life simple and convenient so always look for properties near to stations.

Think about schools

Just as you look for apartments close to university and TAFE campuses when buying an apartment, if you have the budget to invest in a family home, it makes sense to think about schools.

Before you invest in Perth, speak to a property manager about who the tenants are likely to be. If it is a family with young children, aim for something walking distance from the local primary school. High school-aged children should be able to ride a bike or catch the train/bus without too much effort.

Proximity to other amenities like parks and playgrounds will also be a bonus. A rental property that is a stone’s throw from a playground is always appealing to a family with young children.

Think about lifestyle

When people think about Perth, beaches come to mind. Coastal suburbs such as Wembley, Floreat, Scarborough, Cottesloe and Swanbourne are especially popular with young families who enjoy an active, beachside lifestyle. Perth is known for its coastline, so homes that are closer to the beach and have easy access to public transportation are highly sought after and are likely to attract long-term tenants.

A little further from the coast, suburbs with a trendy village lifestyle are always popular. Leederville, Mount Lawley and Mouth Hawthorn are examples.

When you’re deciding where to invest in Perth, keep the local cafe, pub and restaurant scene in mind if you think your tenants will be young professionals. The most sought-after properties are conveniently located, and these are the places that will maintain steady occupancy, even when the market changes.

Property features

Location and proximity to the things that make life easy are important factors but don’t forget to think about the property itself.

Features that appeal to tenants include:

• Off-street parking/garage
• Air conditioning
• A courtyard or garden
• Up to date kitchen and bathroom
• Plenty of storage

How to maximise occupancy when you invest in Perth

Finally, and perhaps most importantly, if you want your property to be tenanted long-term with high-quality tenants, you need the support of a professional property manager.

When you have a long-term relationship with a property manager who is caring, responsive and reliable, you’re more likely to have long-term tenants. This will go a long way to safeguard your finances and help you get more from your Perth investment property.

Are you ready to find the perfect Perth investment property? Contact D Residential today.