People are often drawn to major urban centres and capital cities when looking at real estate investments. However – in regional areas there are a range of hidden gems. In Western Australia’s case, one of those gems can be found in the Great Southern area – Albany.
Property Investment in Western Australia
Property investing is an extremely popular form of investment within WA, due to the range of long term financial benefits investors can receive. Historically, a primary benefit of property investment is capital growth, which can significantly increase your personal value with a little time and patience. Your property’s value will almost certainly appreciate over time. Property investments are also viewed as one of the safest forms of investment due to the physical nature of the asset.
Benefits of Investing In The Great Southern
As the Great Southern region continues to experience an increase in tourism and urban development, the potential for the growth of property value, paired with rental demand, is significant. By investing in the Albany area, you can enjoy the benefits of owning property in a booming location – one that also happens to be one of the most picturesque parts of the country.
Affordability & Growth Potential
A key advantage of investing in the Great Southern region is the affordability of properties and land in the area. Major urban centres are experiencing skyrocketing prices which when contrasted with Albany, highlights the affordability and bang-for-buck qualities of the states Great Southern. With a lower entry cost, investors are presented with a terrific opportunity to own a property without breaking the bank. The growth potential of the region is significant, enhancing its appeal, with improvements in tourism, industry and infrastructure continuing.
The pristine coastline and natural environment in the Albany area is renowned for its breathtaking beauty – from spectacular beaches to rolling hills and lush forests, the diversity of the environment appeals to both tourists and residents. Albany is generally viewed as a desirable place to live thanks to the relaxed lifestyle and strong sense of community. A combination of natural beauty and quality of life assists real estate demand to stay strong year-round.
Economic Development & Tourism
The Great Southern region has experienced a large uptick in tourism in recent years, attracting a range of travellers from all around the globe. With historical sites, wineries, nature reserves and unique wildlife, the area has become a hotspot for tourists. The significant growth in tourism has translated into a strong local economy with plentiful opportunities for business and employment growth. This economic position contributes to the strength of the real estate market, reinforcing the attractiveness of the area as an investment option.
With an expanding population, strong tourism and agricultural industries driving growth, investments across health, education and business, there is a constant demand for available rental properties in the Albany region. The rental market in the Great Southern presents as an attractive option for investors seeking to generate a passive income stream and add more security to their financial future. It is also a great opportunity to diversify your rental portfolio by expanding beyond capital cities and major urban centres.
Pros and Cons of Investing In Property
There is a range of considerations that need to be addressed when embarking on a property investment journey. It is often seen as one of the least risky forms of investment, but there are dangers you need to be aware of.
- Tax Deductions – Most property expenses can be offset against income generated by your rental property, including interests on any loan used to purchase the property.
- No Specialised Knowledge Required – There is no particular specialised knowledge required to invest in the property market.
- Capital Growth – If your property increases in value, you’ll benefit from a capital gain when you sell.
- Less Volatility – Property can be less volatile than other forms of investment.
- Income – Rental income is earned while the property is tenanted.
- Physical Asset – You are investing in something tangible.
- High Entry & Exit Costs – Expenses such as stamp duty, real estate fees and legal fees may apply when purchasing or selling a property.
- Loss Of Value – If the value of your property depreciates, you could end up owing more on your loan than the property is worth.
- Interest Rates – Rising interest rates will result in higher mortgage repayments and lower disposable income.
- Inflexible – You are unable to sell of a portion of the property if you need to access some capital in a hurry.
- Vacancies – You could be forced to front costs yourself if your property is untenanted.
- Costs – Rental income may not cover mortgage payments and other expenses.
Choose Wellington & Reeves To Assist On Your Investment Journey
As one of the oldest and most reputable real estate agencies in the Great Southern, Wellington & Reeves take great pride in providing property solutions for our valued clients. Established in 1948, we know the local market like the back of our hands – whether you’re wanting to purchase, sell, rent or invest, we are well equipped to assist you across the residential and commercial sectors. With an extensive portfolio of properties, we are committed to connecting you with a range of suitable sellers so you can kick off your property investment journey. To get started, contact our team today!