Professionals Real Estate 
The wisdom of buying a property in Perth is underlined by the latest 10 year rankings for best performing capital city real estate markets in Australia according to Shane Kempton, CEO of Professionals Real Estate Group.
Mr Kempton said that RP Data figures show that annually house prices in Perth increase by 7.6% annually over the last decade.
“This was the second highest performance in Australia next to Darwin where house prices increased annually by 8.8% over the last decade for the period ending the March 2014 quarter. Over this ten year period, the average annual growth in the value of property throughout the capital cities was 4.5% which further illustrates that Perth is a great place to buy property. While Sydney and the Melbourne markets are currently booming, the fact is that Perth offers property buyers very sound capital growth returns over the long term. For example, anyone who bought a home in Perth for the first time a decade ago would have seen the value of the property nearly double in value over that time. It is important to remember that this ten year period takes into account a number of property cycles and highlights the fact that buying property should be seen as a long term financial commitment.”
“Anyone buying a home in Perth for the first times should take a 10 year approach to the property market to reap the maximum returns. Despite recent rises in Perth property values, real estate in Perth is still relatively affordable for first home buyers when compared to Eastern States capital cities such as Sydney,” he said.
Tips for buying your first home
- Take time to buy your first property and see it as a pathway to your eventual dream home.
- Future capital growth potential should be a key consideration when selecting your first home. As you want to buy a property that will out perform the rest of the market and deliver you the wealth creation to upgrade to a better located property this is a critical factor you must understand.
- Use the R.C.C location rule when buying an investment property. It should be located either near the River, Coast or City. Properties in these areas generally have demonstrated higher rates of capital growth and rental returns.
- Consider the land content of the property rather than the structure of the home. It is important to remember that land appreciates in value and the buildings depreciate in value. A property which has a land content of more than 75% has a greater chance of appreciating at a higher rate than a property where most of the value of the property is in the building.
- The block size of the property is also important. The larger the block the greater the potential the property has for future subdivision which will significantly increase the value of the property. You should check with the local Council to ascertain any future changes to land zoning which might allow the opportunity for higher density homes.
- Focus buying a property where there is a broad range of property owners rather than just first home buyers. For example, if the area has a significant number of second home occupied homes it means that the potential pool of people wanting to buy your property in the future will be much higher than a property than just first home buyers.
- Consider buying an older style home that you can add value to through cosmetic changes. The biggest returns are from homes where the overall street appeal has been improved. A good tip is to pick a well located home with poorly maintained gardens which may be undervalued in the current market.
