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Investing with LWP

Intrested in building an investment property but not sure where to start? Read on and find out how LWP can help you build at one of our award winning developments.

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Investment – Why do it?

Direct investment into residential property is a popular form of investment.  Financial institutes will often lend a higher proportion of funds against the property value over other asset classes. It’s bricks and mortar, not just numbers on a screen. It’s also considered one of the more solid, less volatile forms of investment. Investors like property for:

  • Potential capital growth (increase in value)
  • Ongoing rental return
  • Tax benefits.

Lenders consider the potential rental income you’ll get from the property when calculating how much you can borrow.

Have you got reasonable equity in your existing home? Most lenders will accept equity in an existing property as a deposit for the investment property.

An investment property can be an ideal way to enter the property market. Whilst you won’t be able to access First homebuyer’s government grants applicable to buying a home you’re going to live in, you won’t have to wait until you can afford somewhere that suits your personal accommodation needs. This option is attractive to young people living with parents or fly in-fly out workers, who are not fully utilising the home due to employment conditions.

Not only is there potential capital growth to look forward to, but you’ll also have income from the moment the home is rented.

 Property Investment in the news....

Why Now? Why Perth?

Affordability

Affordability is i Perth and Western Australia has continued to improve over the last three years, making now a good time to purchase property.

Affordability in WA

Interest rates

Interest rates continue to fall and are the lowest they have been for 50 years, which is great news for borrowers.

Rental Vacancy Rates

While rental vacancy rates have lifted in Perth in recent months, they remain low, which means that there remains strong demand for rental properties.  Visit REIWA for the latest data.

Rental Demand

The median rent in Perth has risen consistently over the past few years and sits at $480 per week in June 2013.  This is up from $440 in June 2012.  Visit REIWA for the latest data.

Population Growth

Western Australia remains the state with the fastest growing population in Australia.

Housing Shortage

Over the past few years, the number of new properties being constructed has fallen significantly below demand, meaning that there is now a considerable shortage of property available in Perth.

Forecasts for Building Activity

Building approvals in Perth have increased over the past twelve months and the market has seen a significant rise in investor activity in 2013.  The Housing Industry Association forecasts housing starts will continue to increase over the next few years.

Building Activity Forecasts (HIA) June 2013

Advantages of building new

Building in new developments:

Building a new property in the latest design is attractive to purchasers and many new growth areas have solid rental demand as purchasers prefer to rent in the area they are building in, to secure local schools and engage in community activities.

Control:

As a property investor, you have total control over the investment.

Tax benefits:

New homes benefit from excellent tax deductable building depreciation allowances and a number of other costs associated with ownership of an investment property are tax deductable.

Turnkey products in new growth areas:

Turnkey investment properties eliminate delays and prevent budget blowouts because you don't need to fit it out yourself before finding a tenant. Most professional property investors now choose turnkey products as the most time and cost effective option.

The house is finished to a level where as soon as you have the key, its ready for renting (i.e. all floor coverings, window treatments, etc. are already fitted). 

Investment

Investment


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URBANO is a new concept in living from LWP Property Group.  Featuring 'turn-key' homes designed by some of Perth's leading builders, URBANO precincts are located adjacent to village centres in our master-planned communities at Ellenbrook, Trinity at Alkimos and The Glades at Byford. Find out more about URBANO.

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