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Perth Real Estate Market: Best Suburbs to Buy Investment Properties

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Many people are always thinking of getting into property investing but sadly, they do not know how and where to begin. At times, no right person is there to guide them, too.

So, what’s the reason for investing?  It is simply to build-up wealth through strategic planning. Choosing the right city or location to invest in is an absolute great way to start in this venture.

Choosing the right location is crucial if your goal is to make good money out of property investing.  What do we mean by this? Location is important for higher rental yield, robust capital growth and distinguishing attributes like liveability and tenant management. An ‘A-grade’ quality is what we usually have in mind for such types of properties. 

We know that investing is a smart future plan for any individual, be it a professional, an entrepreneur, a regular mom or dad – – – investing is for everyone.  And making use of  the right tool for property investing, like our SubursbFinder tool,  is one smart way of equipping yourself with current and historical real property data that you can use in identifying the best suburbs to build a good investment portfolio.

Success in property investing involves long-term economic principles and not just about short-term financial gains. This typically means investing in locations with varied and complex economies – not in areas that have constant financial fluctuations that are dependent on the performance of a particular industry.

Which suburbs in Perth are Worthy to Invest in? Why?

This West Coast treasure is known to those people prefer the beach/coastline lifestyle that is not so pricey. It is seen as being smaller and more secluded than the other capital cities of Australia. But what this city lacks in accessibility and magniture – it surely makes up for in liveability, friendly locals,  and of course, incomparable lifestyle.

There are about more than 250 suburbs now in Perth so it’s not surprising that this wonderful city offers several various living possibilities.  

So, where are the best areas to live in Perth? Which suburbs in Perth are best to invest in? This will actually depend on what attributes are significant to you – is it the location, price, amenities or lifestyle? 

So here’s a GUIDE on the Perth’s most popular suburbs based on several metrics which will help you determine what’s best for you.

Is it Great to Live in Perth?

There’s an anecdote that says that when you find someone in Perth and you two are in a relationship – it wouldn’t be difficult to consider moving to Perth because of its unparalleled lifestyle that is something hard to resist.

First off, Perth gives you more hours of sunshine in a year vs. other capital cities, giving locals the chance to enjoy the most gorgeous beaches in the country.

But it’s not just about the surf and the coasts in Perth at all. It is also popular for its diverse communities — – -like the Fremantle’s historical port area or so-called ‘Freo’, the trendy Subiaco, and the riverside wonders of King’s Park.  Other remarkably desirable points of Perth include thriving job opportunities, greeneries and lush spaces, low pollution and minor and insignificant crime levels.

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Safest Suburbs in Perth

Perth is highly regarded as one of the safest capital cities to live in. But as in other cities, this category differs from suburb to suburb.   The realestate.com.au’s Life in Australia index report tells us that 72% of Perth’s population consider safety as their first priority in deciding where to live. In fact, safety ranks higher than quality health services and affordable housing.  The study revealed that the locals of Perth regard safety more than how the residents from other major cities do.

According to Canstar data, the beachside suburb of Iluka is the safest suburb in Perth. It has a low crime rate of just 1.33 reported cases for every 100 residents.  Burns Beach, Hovea, Mahogany Creek, Parkerville, Stoneville, Roleystone, Connolly, Darch and Tapping – are the other exceptionally safe suburbs in Perth using crime rate data.

In the Safety Category, where are Perth’s Worst Suburbs?

As we’ve provided you the safest suburbs to live in, conversely – the next thing to ask is “which suburbs should I avoid and not live in?”  

The suburb that has the highest crime rate is Northbridge. Concurrently, it is where most nightlife activities in the city happen. As gathered from WA police data, this suburb has a crime rate of 257.38 reported cases per 100 residents.  The other suburbs with relatively high crime rates are  O’Connor, Burswood, Kwinana Town Centre, Midland, Neebarup, Midvale, Haynes and Cockburn Central. Just be be mindful and thorough if you are considering to buy a  property in any of these areas.

The Most Expensive Suburbs in Perth

First in the list is Peppermint Grove, one of the State’s most beautiful suburbs, known for its large character homes set in tranquil tree-lined streets and lush, verdant parks located by the calm waters and serene shores of the Swan River. It was named after its trademark Swan River peppermint trees lining many streets. The suburb has long been associated with Western Australia’s wealthiest and oldest families. The typical price of houses on this suburb is $3.3M (as of August 2021).

The breathtaking suburb Dalkeith, with its three sides sitting by the Swan River, seconds the list of suburbs for the affluent.  Those who have been in the leafy areas and have seen the deluxe mansions wouldn’t be surprised that the median house price for this suburb is around $2.8M (as of August 2021)

The third suburb in the list, after Dalkeith, is none other than Cottesloe. This suburb is attractive and sought-after for its proximity to the CBD and Fremantle, as well as for the beach lifestyle it offers. The median house price here sits at $2.5M (as of August 2021), a little lower than Dalkeith.

If you go a little further along the coast, you will find Perth’s 4th most expensive suburb, City Beach. Its name apparently sums it up big time – as  it gives its residents the best of both worlds.  Aside from being relatively close to the city centre of Perth, it also offers some of the city’s most perfect beaches – unspoiled and untouched. For this area – the median house price is around $2.1M (as of August 2021), almost half a million lower than Cottesloe.

Perth’s Best Suburbs to Buy Investment Properties 

So, if you’re a first-time property investor wanting to buy a property in Perth, it can be ideal for you due to its fairly reasonable entry point. As the present housing rates are on the low side – there’s a high probability that it is going to crack a boom in the next years or so, but quite uncertain to anticipate at this time due to current CoVid-19 pandemic conditions.

Here’s what is important to consider: Perth’s property market  is currently subdivided into 2: the inner ring and the outer ring. The inner ring comprises the suburbs near the city centre, less than 15 kms, while the outer ring is for those that are more than 15 kms.  The real estate agents unanimously agree that the inner ring is undoubtedly the best place to invest in. Since Perth is a flourishing city – most locals prefer to be in the centre of it all — dining establishments, entertainment venues, commercial and shopping centres.

Conclusion

The real estate industry for Perth has a 6-10% market growth forecast for those in the luxury to semi-luxury types of properties. Currently, Perth’s rental market is clogged with low vacancy rates.

This is promising as it could provide more opportunities for investors, increasing the rental property supply levels in the city.  Finding tenants will be less burdensome as more potential residents will be looking to live and stay in Perth.

Just a fair warning though.  It is recommended that you study and make your own research to be able to check the suburb’s growth rates and confirm how it appeals to tenants before you actually invest. This will help you make realistic rental yield projections for your investment.

For Perth to continually bloom, there should be some economic changes. Better for you to go and analyze the planned structural changes in Perth based on the recent property market data – as  it could bounce off where the growth is taking place.

In addition, the regional Perth side is looking strong with many reasonably-priced properties in the high-growth locations. This is definitely something worth considering too.   

There is really so much to learn in property investing and SuburbsFinder is here to help you. We offer our services to help you find the best location to buy investment properties and more importantly, identify the right property to have.

Take advantage of our fully customisable tool to help you in choose which areas have both Good Capital Growth and Positive Cash Flow and utilize it to be on top over the less-knowledgeable property investors, local real estate representatives, developers and owners. It lets you narrow down 15,000+ suburbs by combining all 40 data points as filters. It also lets you compare suburbs historical & current performance. And once you identified the best location our tool also lets you do feasibility studies on 5 properties all at the same time. Save time, budget, and cover the full cycle of your investment property research workflow.

So, if you think what we’ve built will drastically decrease your time researching for the best location and finding the right property based on your goals and financial situation, why don’t you sign up and give it a try.

How to Find High Demand Suburbs for Renting Out Rooms Individually within Seconds



It is the most comprehensive location report of all 15,000+ suburbs in Australia – with linked state, suburb, and postcode. It’s the perfect tool for property investors looking to buy a property to rent out rooms individually to have a positively geared portfolio.

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