The Real Estate Boom In Perth, Australia
There is no question that the Australian city of Perth is enjoying a real estate boom. Demand is high, supplies are limited, and so values are rising sharply. There is debate over whether or not this boom is sustainable or a bubble doomed to eventually burst, yet the growth in this local sector seems poised to continue for a while. If you want to somehow take advantage of this, consider the 4 following possibilities:
4 Ways To Take Advantage Of The Real Estate Boom In Perth, Australia
Buy low, and sell high
This is a classic technique for making money in any industry that involves physical property, although the principal can also apply in corporate stocks too. If you can get your hands on a property, or already hold one, then just being a little patient can mean the property value goes up and you sell for a profit. The trick is selling before the inevitable downturn but after you’ve seen the value rise enough to be worth your while.
Find Premium & Growing Locations in Perth
Try to find areas in Perth, Australia that are up and coming in terms of economic development rather than ones that are already selling at a premium. Unless you are really investing for the long run, you’d want to start by investing in properties that are going to yield relatively faster. And growing economies would want to make buyers who do not have the budget for the high-end suburbs, purchase in these areas instead.
Snatching a run-down, old, or low-value property and then fixing it up with renovations to increase its desirability can yield quite a nice profit. That is if you are able to sell it for more than the sum of the purchase price, the work you put into it, and the logistics of buying and selling.
Buy a multi-unit property and collect rent
Property values that go up tend to mean rents that go up. If you buy a residential property with five apartments or a commercial property with ten store spaces, you can have multiple streams of rental income for years to come.
If your current home has a rising value and you don’t need all that space, because kids moved out or something else, sell your home for top dollar. You can afford a smaller place and still have money left over.