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Investment Property

Should I start thinking about investing?

Top 6 Reasons to Build an Investment Property

  • Demand for Homes
  • Economic Landscape
  • Interest Rates
  • East Coast Comparison
  • New Build Cost Saving
  • Lifetime 25 Year Guarantee
  • Demand for Homes
  • Economic Landscape
  • Interest Rates
  • East Coast Comparison
  • New Build Cost Saving
  • Lifetime 25 Year Guarantee

It’s never too early to start thinking about your financial future.

And if you want to start living your best life (now, and in the years to come) finding ways to make your money work for you is the pathway to financial freedom.

That’s where building an investment property comes in. It’s a long-term wealth creation strategy that is hugely popular in Australia - and for good reason.

And the best part, investment properties aren't just for the wealthy as you don't need a large sum of cash to get started.

If you want to start thinking about endless European holidays, then investing your money into portfolios such as property, maybe the answer.

Here are 6 reasons why we think now is a great time to build and invest your money into property:

1. Demand in Homes and Rentals

The WA property market has continued to see an increase in the demand for homes and rentals. The current vacancy rate as of January 2022 is 0.9%* where the typical average is between 2.5% and 3.5%, yet we have little supply. Despite the many properties coming onto the market at the end of last year, the WA Housing Authority has predicted we will need 150,000 new dwellings by 2030, indicating the demand for houses will continue to grow. Therefore, if you have ever thought about investing in a property in WA, now is certainly the time to do!

The graph is taken from REIWA, we can see the decline in vacancy rates and increase in median rent.

*Sourced from https://reiwa.com.au/the-wa-market/rental-vacancy-rates/

2. Economic Landscape

In simple terms, there are four phases in the housing cycle: Peak of the market, declining market, bottom pf market and rising market. When we look at Western Australia’s economic landscape, it is on the recovery following the mining boom, what follows recovery is the rising market which is where the economy is heading. This would be a great time to enter into property investment, as there may be potential for growth.

No one can predict the future, however, we can look into trends. What many investors believe is that timing the market is not as important as time in the market.

Property Clock March 2020 - Bottom of Market,

Property Clock September 2020 - Start of Recovery, 

Property Clock March 2021 - Rising Market, 

Property Clock March 2022 - Rising Market.

3. Interest Rates

Interest rates have been on a downward trajectory according to the Reserve Bank of Australia (RBA), based on the record low rates. According to tradingecomonics.com over the next couple of years, the predictions are that these are set to rise. Indicating now would be a good time to get an investment loan.

4. East Coast Comparison

If we compare the Perth property prices and rental yields to those on the east coast, it is no brainer why savvy investors from the east coast are scrambling to buy affordable property here in Perth. As of February 2022, Perth house rental yields are at 4.1%, this is much higher compared to Sydney (2.2%), Melbourne (2.4%), and the national average (3.8%).

Source: https://sqmresearch.com.au/property-rental-yield.php?region=wa-Perth&type=c&t=1

There is so much potential for growth for the property prices in Perth. YoY Perth has seen a 7.5% growth, whereas Sydney, Canberra, Darwin & Hobart have all increased more than 30%. 

Source: https://www.domain.com.au/research/house-price-report/december-2021/

5. New Build Cost Saving

With a newly built investment property, you are getting a property that’s never been lived in before. It’s designed with environmental benefits, rigorous energy efficiency, quality long-lasting materials, and innovative technologies.

What we have seen time and time again with established investment property is the costly maintenance involved, from sourcing materials, building costs, and high energy costs.

6. Lifetime 25 Year Guarantee

When you build with New Generation Homes, you benefit from a lifetime 25-year guarantee and 6 months free maintenance service. For your protection and peace of mind, if there are any problems with your new investment property within the first 6 months from handover, our Service Department will offer advice or arrange corrective action if necessary.

Is investing in your future something you would like to do?

If you have answered yes, we can help you from finance to the front door.

New Generation Homes is proudly powered by the Summit Homes Group with over 40 years of award-winning experience, so you’re in safe hands.

When you build with New Generation you get access to our in-house finance specialists - Westgate Finance.

Their team understands the complexities of financing for a new build and when someone else is looking after complexities, you don’t have to.

Then there’s the access to lower fees and interest rates, no extra service costs, and seamless collaboration between the people behind your new home.