0 - 2023 - AB Realty

Australian real estate investors have always wondered where the best suburbs for investment in Perth are. This is because, throughout the rising interest rates and economic downturn in 2022, Perth has maintained a competitive housing market that continues to deliver price growth to landlords.

This makes Perth one of the best places to buy investment property in Australia, especially when compared to some of the other bigger cities in the country. In addition, Perth has experienced consistently low vacancy levels coupled with ever-increasing rental growth. The low vacancy rate is a result of significant government spending to improve housing infrastructure.

So, there are always great properties available at good house prices for investment in all of Perth’s suburbs. But, the question remains, which is the best suburb in Perth to buy property? At AB Realty, we’re committed to finding you the best deal and making sure your property reaches its full potential. We’ve compiled this article to help you on your investment journey by providing you with a ranking of Perth’s best suburbs for investment!

10 of the Most Savvy Perth Suburbs to Invest in

The ranking of these suburbs is based on a variety of factors including distance to the city centre, yield rates, and the median rental price. This list should give any property investor a good idea of the best suburbs to purchase property in Perth.

1. Wanneroo

Wanneroo is slowly becoming its very own thriving city, and is without a doubt the best suburb for investment in Perth. With its rapidly growing population, there are always new tenants looking for a place to stay.

Whether you prefer individual tenants, families, or students, you will find the renters you’re looking for in Wanneroo. One key benefit to living in Wanneroo is that it’s close to both Perth CBD and Joondalup. The median house price in Wanneroo is around $400,000, making it a very affordable suburb to invest in.

Key suburb information

Distance to Perth city centre: 28 km

Rental yield: 5.2%

Median rent price: $508 weekly

Nearby attractions: Wanneroo Regional Museum, Yanchep National Park

2. Alkimos

Alkimos is one of the most in-demand coastal suburbs in WA. Situated to the north-west of the city, this suburb is a great choice for families looking for a bit of peace and quiet. The region has plenty of great residential zones, along with tons of natural beauty to admire.

The demand for investment in Alkimos has increased since the extension of the Mitchell Freeway and rail link to major cities became operational. If you’re looking to invest in a suburb with great beach views and unburdened bushland, Alkimos is perfect for your real estate needs!

Key suburb information

Distance to Perth city centre: 42 km

Rental yield: 5.4%

Median rent price: $405 weekly

Nearby attractions: Caversham Wildlife Park

3. Carramar

Carramar offers a great mix of nightlife, necessary amenities, and family privacy. It’s one of the best all-in-one suburbs on this list, which undoubtedly increases its demand for rentals and tenants.

Amenities in Carramar include a golf estate, plentiful gyms and parks, and the second-largest shopping precinct in the Perth region. The average price of an investment property in Carramar stands at around $470,000.

Key suburb information

Distance to Perth city centre: 34 km

Rental yield: 4.8%

Median rent price: $394 per week

Nearby attractions: The Aquarium of Western Australia

4. Joondalup

Joondalup has established itself as one of the student hotspots of Perth, boasting amenities such as Edith Cowan University, a local hospital, and a plethora of cultural and leisure locations.

The median price for a house in Joondalup sits at around $625,000, making it an affordable investment option, with plenty of tenants always searching for a rental home.

Key suburb information

Distance to Perth city centre: 28 km

Rental yield: 4.9%

Median rent price: $500 weekly

Nearby attractions: Yellagonga Regional Park, Hillary’s Boat Harbour

5. Ellenbrook

Ellenbrook is one of our top choices for family tenants out of all Perth neighbourhoods. This suburb boasts some of the most modern amenities in Western Australia including local parks, shopping precincts, schools, and affordable housing options.

Key suburb information

Distance to Perth city centre: 30 km

Rental yield: 5.5%

Median rent price: $460 weekly

Nearby attractions: Caversham Wildlife Park, Lake Fresca

6. Northbridge

Northbridge is a little bit different from the suburbs previously discussed in this list. This is because Northbridge is situated in the inner city of Perth, making it a closed urban suburb. This makes it a hotspot for renting, especially for young professionals, as the suburb is located near Perth’s central business district.

What makes Northbridge truly special, however, is that it is considered a major cultural hotspot of the city. There is plenty of art to see, performers to watch, and incredible international cuisine to try. People will always be enquiring about renting your Northbridge properties.

Key suburb information

Distance to Perth city centre: <1 km

Rental yield: 5.3%

Median rent price: $400 weekly

Nearby attractions: State War Memorial, Kings Park and Botanic Garden

7. Orelia

Orelia is undeniably one of the best suburbs in Australia for property investment. Recent data indicates that property investors are experiencing a return of approximately 14.85% in capital gains, which is considered great for investors. This is because Orelia is situated in one of the most affordable housing sectors in Perth – the city of Kwinana.

For these reasons, Orelia is a suburb that all Perth property investors should consider when deciding where to buy a home to rent.

Key suburb information

Distance to Perth city centre: 35 km

Rental yield: 6.2%

Median rent price: $370 weekly

Nearby attractions: WA Wartime Museum

8. Brabham

Located in the city of Swan, Brabham has been described by real estate investment gurus as one of the fastest-growing and most exciting suburbs in Perth. Brabham is a large residential area that still retains substantial areas of greenery, and is nearby many great attractions.

On average, a house in Brabham will set investors back around $400,000.

Key suburb information

Distance to Perth city centre: 23 km

Rental yield: 5.9%

Median rent price: $508 weekly

Nearby attractions: Whiteman Park, Swan Valley Cuddly Animal Farm

9. Armadale

Armadale is one of the most densely populated suburbs on this list. This is because it is located right on the intersection between South Western and Albany Highways. It also contains the terminus of the Armadale railway station, which is one of five major railway lines in Perth.

Armadale is one of the transportation hubs in the Western Australian region. Lots of people pass through each and every day, making it an economic hotspot for the city of Perth. You will never struggle to find tenants here, even if the rental yield is a little bit lower than other suburbs in Perth.

Key suburb information

Distance to Perth city centre: 36 km

Rental yield: 5%

Median rent price: $260 weekly

Nearby attractions: Armadale Reptile and Wildlife Centre

10. Forrestfield

A major driver of rental yield and the average rental price in any given suburb is a growing economic infrastructure. Forrestfield is one such suburb where infrastructure growth is positively influencing the property investment market.

Forrestfield has recently obtained a new railway line, which couples brilliantly with the Forrestfield Airport. The time to invest in Forrestfield is now before it becomes a hotspot for real estate property purchases.

Key suburb information

Distance to Perth city centre: 19 km

Rental yield: 5.3%

Median rent price: $475 weekly

Nearby attractions: Mundy Regional Park

Here is a summary of the key factors of our top 10 suburbs in Perth:

Suburb	Distance to Perth	Rental yield 1	Average weekly rent 2
Wanneroo	28 km	5.2%	$508
Alkimos	42 km	5.4%	$405
Carramar	34 km	4.8%	$394
Joondalup	28 km	4.9%	$500
Ellenbrook	30 km	5.5%	$460
Northbridge	<1 km	5.3%	$400
Orelia	35 km	6.2%	$370
Brabham	23 km	5.9%	$508
Armadale	36 km	5%	$260
Forrestfield	19 km	5.3%	$475

1 Rental yield data obtained from: www.realestateinvestar.com.au

2 Average rent price data obtained from: sqmresearch.com.au

*This article is not meant to be investment advice. It is for informational purposes only and based on third party statistics.

Considerations to Make When Investing in Perth Real Estate

Living in Perth is highly regarded as extremely safe and happy. It has great coastal regions, plenty of superb attractions, and all the local amenities that individuals and families need in nearby proximity, regardless of the suburb you choose to live in.

Here are a few factors to consider when thinking about entering the Perth property market:

Low Crime Levels

Perth is ranked as one of the safest cities to live in, not only in Australia but in the world. According to the Berkshire Hathaway Travel Protection Agency, Perth scores 74/100 per cent in terms of city safety. This is based on data collected and analysed by GeoSure Global, a data science and risk-modelling company.

GeoSure has established safety scores for over 65,000 areas worldwide, based on eight key categories: women’s safety, physical harm, theft, health and medical, LGBTQ+ safety, political freedoms, and daytime/nighttime safety. GeoSure’s data indicates that Perth falls into the safest 28% of the world – clearly a sought-after destination.

This makes Perth a great destination for tourists and also a safe long-term choice for potential tenants and renters. This is a strong reason for you to consider investing in property in one of the suburbs mentioned above.

Weather and Liveability

The Perth lifestyle is unmatched when compared to most other cities around the world. Not only does Perth get over 3,000 hours of sunlight per year, but it is also a coastal region, so beautiful beaches and seaside scenery are always nearby.

According to property data and population growth, it is clear that people want to live in Perth. As a landlord, this should tell you that excellent property investment opportunities are waiting to be exploited.

Educational Facilities

Perth is one of the educational hubs of Australia. There are five world-class universities in the city and surrounding suburbs. By investing in a Perth-based property, there is always a good chance that students will contact you looking to rent.

Enlist the Help of Experienced Real Estate Agents

So, now you’re thinking of investing in Perth’s rental market? Well, we here at AB Realty want to make this investment opportunity come true for you!

Our experienced team of real estate agents can help you find property to buy in any one of the suburbs mentioned above. We can also help you find tenants to rent the property after purchase.

In short, we will do all the work for you, while leaving all the substantial decisions, like which property to purchase, up to you!

Contact one of our expert agents today to start your Perth investment journey!

Renting Out Your Property in Perth, WA – Owners Guide

Posted on October 16, 2023April 2, 2024 by bfadmin

If you’re a property owner in Perth, it might be time to start thinking about renting out your property and becoming a landlord. This is because rental prices across Australia have been soaring, and Perth is no exception!

But becoming a landlord (aka, lessor) is not easy, and there is a lot that you need to consider.

From legal and safety obligations and your responsibilities as a landlord to the decision to get property agents involved or not, there will be a lot on your renting checklist.

This article will take you through a comprehensive guide to renting out your property in Perth, WA, so that you can enter the rental market with full confidence!

Contents

1 Making the Decision to Rent out Your Property
2 Weekly Rental Analysis for Various Property Types in Perth
3 How to Prepare Your Property for Rent
4 Steps for Renting Your Property
5 Safety and Legal Obligations for Landlords
6 What Are Your Ongoing Responsibilities as a Landlord?
7 Consider Hiring a Property Agent Instead of Self-Managing Your Rental
- 7.1 Additional Resources

Making the Decision to Rent out Your Property

Deciding to lease out your property is easier said than done.

Firstly, whether or not you’ve been living on the property yourself, you’ll need to let go of any emotional attachment that you have to the house. You need to accept that the property is going to be occupied by renters and that you’ll be the one responsible for general upkeep.

Secondly, you’ll need to sit down with a financial advisor and go through all the possible expenses that come with being a landlord. You’ll need to figure out whether renting the property will be a profitable endeavour.

Once you’ve come to a final decision to rent, then you can start going through some of the more technical considerations of becoming a rental landlord.

Weekly Rental Analysis for Various Property Types in Perth

The SQM Research Weekly Rents Index for the week ending 4 October 2023, offers a detailed snapshot of the evolving rental landscape in Perth. Let’s delve into the numbers:

Category	Weekly Rent ($)	Change on prev week ($)	Rolling Month % change	Rolling Quarter % change	12 Month % change	3 Year (pa) % change	7 Year (pa) % change	10 Year (pa) % change
All Houses	708.45	-4.45	-1.2%	3.3%	17.5%	14.4%	7.3%	2.2%
3-Bedroom Houses	651.78	-2.78	0.3%	6.2%	15.4%	14.2%	6.8%	2.2%
All Units	540.24	-1.24	-1.4%	2.3%	18.3%	14.4%	6.6%	1.8%
2-Bedroom Units	541.70	-0.70	0.8%	5.0%	21.4%	15.5%	7.2%	2.3%
Combined	638.05	-3.10	-1.3%	2.9%	17.8%	14.4%	7.1%	2.0%

For property owners, this could be a golden era to leverage these bullish rental trends. Property owners will likely reap huge profits from renting out properties, while securing consistent and potentially growing rental income.

How to Prepare Your Property for Rent

Once you’ve decided that you want to rent out your property, it’s time to get it ready for the rental market.

Taking the time to prepare your property will:

Attract high-quality tenants
Ensure a higher weekly or monthly rental income
Make the process of finding tenants faster

But, what can you do to comprehensively prepare your property for the rental market?

1. General Home Maintenance

Before searching for tenants, you must ensure that your property is in tip-top shape. This means going around the entire premises and scanning for anything that needs repairs.

Prospective tenants may look elsewhere if there are additional repairs that need to be done, or if parts of the property aren’t functioning properly.

Common problems that require repairs include:

Cracked or loose tiles
Taps that constantly drip
Broken door locks/locks with no keys
Mould around the house
Walls that need new grouting
Broken windows
Windows not opening or closing properly
Chipped or old paint

2. Clean the Property

In addition to handling repairs on the rental property, you should also focus on keeping the house clean and attractive for potential renters.

When tenants arrive at a rental property, cleanliness can build excitement and help them make their decisions faster. Alternatively, an unclean home may quickly drive away prospective renters.

Ensuring that your home is clean when new tenants move in will also set a benchmark for cleanliness that they must match when they eventually move out.

3. Possible Additions to the Property

You may want to include some appliances for your tenants when you decide to rent your property. Furnishing the property with home appliances will increase the appeal of your property, and benefit any occupier massively.

Some appliances you could include:

Washing machine
Dishwasher
Fridge
Microwave
Gardening tools (if the property includes a garden)

4. Insurance

You’ll definitely want to invest in full property insurance if you haven’t already. Many landlords also choose to get rental protection insurance (landlord insurance), which covers rental payment losses.

Another way to insure your rental is through a bond, aka, security deposit or security bond. This is not compulsory, however, it is a good idea. This bond will cover any damage to the property, unpaid rent, or other costs that your tenant has to pay at the end of the tenancy.

The security bond comes with its own requirements and regulations, so it can be a bit of extra work, but your agent can handle the entire process. For detailed information on security bonds and bond lodgement, speak to your agent or have a look at the Government of Western Australia’s security bond lodgement form and guidelines.

Steps for Renting Your Property

So, your property is now ready for the rental market. Here are a few steps that you can follow to speed up the process of renting out your property:

List the property: The best way to list your property is through the Internet. Go around the property, take plenty of photos, and post them to your listing site.
Screen potential tenants: After you’ve listed your property, prospective tenants will apply and come for viewings. You’ll need to choose the right tenant to lease the home to. You can cross-check tenants’ names using the National Tenancy Database. Likewise, you could also ask the tenant for references (previous landlords or current employer) if you feel that is necessary.
Draw up a tenancy agreement: Once you’ve selected your preferred tenant, you’ll need to draw up a tenancy agreement. This will contain information like the weekly/monthly rental price, length of tenancy, landlord entry rights, and pet allowances, amongst other things. You’ll also need to consider separate basic needs like water, electricity, and Internet, and whether you’ll provide these. It’s always a good idea to enlist the help of a real estate agency to ensure this step is done correctly.
Prepare a condition report: You’ll need to prepare a condition report when you hand over the property to your new tenants. This report will contain information about any damage and the overall condition of the property. If you’ve included any electrical appliances in the rental, you should add details on their condition as well. It will also help you check if there has been any new damage when the tenants move out.

Safety and Legal Obligations for Landlords

Each state in Australia has different laws on how landlords can rent out their properties to tenants. Since Perth is situated in Western Australia, here are a few things you must comply with when renting out your home:

Security, safety, and maintenance rights: This includes rental home upkeep, rent inspections, smoke alarms and RCDs, as well as urgent and non-urgent repairs.
Notices and complete condition report: This refers to providing property condition reports, as explained above, and other rental forms and notices.
Safe tenancy regulations: These include the laws that regulate how to handle domestic violence on your rental property and other tenancy issues.
Types of rental accommodation being provided: These guidelines and regulations explain how to manage different forms of rental agreements. This includes sub-letting, letting as holiday accommodation, granny flat renting, and more.
Property management: This determines how you should manage your property if you decide to do it yourself, or how to hire a property manager to do the job for you.

For more information on the property rental legislation in Western Australia, have a look at the Government of Western Australia’s housing and accommodation regulations.

What Are Your Ongoing Responsibilities as a Landlord?

The legal responsibilities of an Australian landlord will differ from state to state. However, some responsibilities apply to all homeowners seeking to rent out their property:

All landlords are responsible for paying the annual rates and council fees for the property.
All landlords must give tenants 24 hours’ notice before entering the property for any reason.
Landlords are responsible for ongoing maintenance and repairs to the property. Urgent repairs must be done immediately, and non-urgent repairs must be completed within 14 days of the tenant’s request.
Landlords are responsible for maintaining the smoke detectors as well as other gas and electrical appliances. This can also include ensuring other safety measures, like fitting a fence around the pool or fixing the locks on the doors.

Consider Hiring a Property Agent Instead of Self-Managing Your Rental

So, you now know everything you need to know about renting out your property in Perth, WA. There are a lot of obligations and responsibilities for landlords to adhere to, and it could take up a lot of your time if you decide to rent privately.

You’ll also need to determine your property’s worth, ensure you abide by the correct laws and minimum standards, as well as find and screen the tenants yourself.

If you want a hassle-free real estate management agency to do all of this for you, check out AB Realty today! At AB Realty, we work for you, the landlord. We’ll make your rental ventures easy by managing multiple tasks, including:

Listing and advertising your property
Opening your property for prospective tenant viewing
Thorough tenant screening processes
Handling any tenant disputes
Preparing documentation including the residential tenancy agreement
Ensuring rental payments
Handling all tenant complaints
Property maintenance

Contact AB Realty today and get in touch with one of our experienced estate agents!

Additional Resources

Government of Western Australia’s Lessor’s Guide

Government of Western Australia’s Rent Agreement (Form 1AA)