What to look for in a suburb as an investor?
Some suburbs outperform other suburbs when purchasing an investment property and for good reason! Much of this is tied to the amenities available in a suburb, the lifestyle that a suburb offers, a reputation of a suburb and location of the suburb relative to major city centres.
Whilst it is always important to consider the product, there are key criteria that indicate which suburbs are smart to invest your money in as rental demands tend to follow.
1. Proximity to major employment hubs
Renters have the ability to pick whatever suburb they want, pending budget and availability. Locations close to their place of work will be preferred to save on commuting time (which can be a significant benefit, saving precious time and money). Knowing that if your tenant doesn’t renew their lease or moves elsewhere, demand from others looking to be in the area will remain providing cash flow assurances.
House and land estate The Height, Kardinya
is a great example of a suburb in Perth located close to major employment hubs. This Pindan development is only a short drive to Murdoch University
, Kardinya Park Shopping Centre
and North Lake Senior Campus
, providing health care, education, sales and administration opportunities. Industry of employment in this well-established suburb are hospitals, primary education, cafes and restaurants, higher education and secondary education.
Another area worth mentioning is the Sunshine Coast, where its economy is diversifying and strengthening as the council is focusing on major development in knowledge-based businesses such as IT, creative industries, aviation and education; all which contributes to increasing employment opportunities.
2. Access to public transport links
As the populations of our capital cities increase over time, so too does congestion! As a result, proximity to public transport can be high up on renter’s lists. Some may need to be in the CBD daily and public transport provides the most convenient means of getting to and from work. If your property only has limited parking, again this affords your tenant the ease of getting to and from their desired location. Many of Pindan’s developments have been popular among investors due strategic locations, with easy access to public transport, as well as secured parking for residents such as Aviva on Broadway
in Crawley, where you have the bus stops right on your doorstep.
3. Lifestyle amenities
Think cafes, bars, restaurants and shops! Suburbs with a unique and notable café or retail strip can be in high demand, as people typically want to live close to precincts where they can meet family and friends to shop, eat and explore.
Indigo, China Green
, located in Subiaco, is great for those looking to own a home without compromising on living centrally. There are shady walks, parks and a lake on the doorstep of this chic complex, with schools, theatres, nightlife, sports, shopping and community markets just a short stroll away. In fact, everything anyone could need is in easy reach, with stunning beaches on one side and Perth CBD on the other. Those looking for the best of both worlds will find it in Subiaco!
Renting families have a unique advantage when picking homes. Although the home itself is important, sometimes the location maybe more critical. Why? Catchment zones of course!
To be eligible to attend certain schools, families need to live in certain catchment zones. Demand can be higher for properties that fall within the areas of the higher-ranked public schools. Demand can also be higher for suburbs close to esteemed private schools, as some families want the convenience of living closer to their children’s place of education.
Source: Top High Schools in Perth- 2018 bettereducation.com.au/school/secondary/wa/perth_top_secondary_schools.asp
5. Public open-spaces
If your investment property is an apartment, has a backyard on the smaller side or is in a built up area, it is always a BONUS for the property to be located close to public open spaces such as parks, beaches and rivers. This gives renters the option to relax outside of the home, meet up with others, exercise and walk their beloved pets (if you are happy to accept pets).
For a great investment property surrounded by parks and lakes, The Heights, Kardinya
again is a great estate itself, offering its own communal barbeque and playground for residents to enjoy. Investors who own a home here feel assured that the area will stay in perfect condition as The Heights is a survey strata development, meaning the strata company will ensure that the common areas and landscaping remain clean and well maintained. Additionally, the Strata Manager will take care of managing the common areas, which include your verge and streetscape. Again, as an owner of an investment property, this is great news as its low maintenance!
6. Great reputation
Suburbs that have great reputations also attract renters, especially families, as safety and wellbeing are strong priorities. Great reputations stem from people knowing the area, either from word of mouth or from their own lived experience, and from encompassing all of the above points; close to major employment hubs, access to public transport links, lifestyle amenities, schools and public open spaces.
Living Sandi- Botanica, Canning Vale
Caprice Elevation- Botanica, Canning Vale
One of Perth’s highly sought-after suburbs which tick all of the above mentioned is Canning Vale
. 51.9% of Canning Vale residents are couples with children, mostly aged between 35 and 39 years of age, who hold stable jobs with good incomes (63% full time workers, 36% part time). This may explain why 90.4% have built 4-bedroom houses, with units a rarity. Rentals in Canning Vale pull in a healthy $400/week. This suggests families continue to see Canning Vale as a perfect place to grow long-term. The appeal of this cultural melting pot stretches everywhere with 38.5% of residents in the suburb speak a language other than English.
For more on our projects ideal as investment properties and to learn about the suburbs they are based in visit https://www.pindan.com.au/sales-and-leasing
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