Units in Western Australia exhibit 5.10% yields during December quarter
Property owners in Perth and elsewhere in Western Australia may be interested in recent findings released in the Residex State Market Report: Western Australia for the December quarter.
The report notes that the state's economy "remains strong", which is positive for homeowners. Existing property owners may wish to make the most of consistently cheap home loans and take a step in the direction of property investment.
Why choose Western Australia?
While cities on the eastern coast such as Melbourne and Sydney have exhibited strength for investors, residents of Western Australia may prefer to own a property closer to home.
Buying an investment property can result in significant rewards, but it's also a big commitment. Buying in an area that you understand and being able to keep up with maintenance as it's required can make the process less stressful.
The unemployment rate in Western Australia was 4.7 per cent during the December quarter in seasonally adjusted terms, but has been favourably trending down since late 2012, according to the Residex report.
In the housing sector, housing approvals are on the rise, with commencements exhibiting an upward trend also.
According to the report, the increase in commencements and approvals is "appropriate", given a suspected housing shortage of around 9,000 properties.
However, the good news for everyday homeowners who are thinking about their first investment property is that the housing market is deemed affordable.
Strong rental yields
Cheap home loans make secondary property buying a favourable option, with Residex's figures for rental yields making the decision to buy in Western Australia even more convincing.
Rental yields for houses in Perth were 4.74 per cent during the December quarter.
The figure climbed even higher for units, with yields reaching 5.10 per cent for this dwelling type. The median weekly rent for Western Australia units was $445.
Stratton, Alkimos, Koondoola, Westminster, Balga, Connolly, Embleton, Nedlands and Jolimont were all pointed out as being high performing suburbs. Westminster had an impressively high capital growth during the December quarter (8.57 per cent), while Stratton's rental yields beat the state average, coming in at 5.53 per cent.