Three years into the Perth real estate market boom, property investors are constantly drawn to leverage this upward trend. Some predictions say that the median house price is set to reach an all-time high of up to $856,000 by mid-2025. Others say the vibrant city has reached its peak and is expected to see a steady decline in the coming years.

These varying predictions and insights into the property market in Perth can leave you confused and unsure of your real estate investment. You don’t want to miss out on the potential high return on investment but you also don't want to incur losses in the long run. This is where a buyer agent in Perth comes into the picture.

Keep reading to see how a professional buyer’s advocate can help you navigate the investment challenges in the Perth real estate market and maximise your returns.

Should You Invest in Perth Real Estate?

There’s no right or wrong answer to this question, as your decision to invest in Perth’s property market depends on various factors. For some, a real estate investment would be the best decision. For others, not so much. 

Below are some factors that determine whether investing in the Perth property market is right for you:

1. The Economy: This remains one of the biggest drivers of the real estate market in Perth. The broader state of the city’s economy will affect its attractiveness to local and international investors. Currently, the economy, driven primarily by the mining industry, stands strong with low unemployment rates as it pulls in real estate investors.

2. Population Growth: Perth is in constant demand for housing, as approximately 81,300 people migrated to the state in the past year. Whether it's for people looking to rent or buy, this growth undeniably increases a desire to invest in rental property.

3. Supply: 8 days. That’s how long properties stay on listings before buyers take them off the market. This is a contrast to 2023 when it took at least 16 days to get a property sold. Considering this, it may seem strategic to jump in as an investor, adding more commercial properties to the supply chain and benefiting from this gold rush.

4. Government Policies: Factors like taxation, interest rates, incentives, planning, and zoning will work to increase or reduce property demand. In the case of Western Australia, the government has put initiatives in place, such as the first-home buyer’s grants and incentives for building new houses, to stimulate the property market.

5. Local Demographics: Perth seemingly offers an above-average wage with a below-average mortgage, which allows lucrative real estate opportunities for working-age residents and the retirement living population.

6. Lifestyle factors: Perth’s beaches, nature reserves, and Mediterranean climate pose an attractive lifestyle for residents. The city basks in urban planning and infrastructural developments, community and culture, and economic opportunities. These desirable traits positively impact investor sentiment. 

Fortunately, you don’t need to consider these factors on your own; you can work with an industry professional who will take all your concerns into account and help you make a smart real estate decision.

Navigating Real Estate Investment Challenges With A Buyer's Agent

A reputable buyer agent in Perth doesn’t merely facilitate the transaction between you and the seller. Their job is to work with and for you to ensure a strategic investment that guarantees your chances of a high return.

Who Is A Buyer’s Agent? 

A buyer’s agent is a real estate professional who guides you through the property buying process. They have the certifications, knowledge, and legal backing to protect the buyer’s interests and ensure that you make strategic real estate decisions with maximum return on investment.

Perth is a fast-selling market and having a buyer’s agent on your side allows you to access properties before they hit the market—off-market properties. This is due to their vast network of sellers, agents, and real estate professionals.

The steady rise in Perth’s property market with low supply has significantly increased the frequency of bidding. This is a situation where you must pitch a higher payment price to win the property, as many people are vying for it. Your buyer’s advocate knows the industry inside out so their focus transcends the desire to win a bid. They will help you secure a strategic property for the best price.

Maximising the Perth Property Market

Below are some of the specific ways that partnering with a buyer” 's agent in Perth will optimise your real estate investment.

1. Identifying high-demand suburbs: Some suburbs in this capital city position better than others. This can be in terms of the average house and unit price, rental yield, and location. Based on your investment goals, your buyer’s agent will advise an optimal suburb that aligns with your preferences. They will analyse key metrics, consider undersupplied areas, and take future developments into account.

2. Leveraging negative gearing: Investing in a property that incurs less income than it costs to own or manage it may seem counterintuitive. However, it allows you the opportunity to deduct these losses from your overall tax income, resulting in tax savings. Also, the property will incur capital growth over time, which should outweigh these losses. Your buyer’s agent will help you make an informed decision on negative gearing.

3. Diversifying your portfolio: Many investors look into residential property when considering real estate investment in Perth due to the rise in population and demand for living property. Residential property investment typically offers a longer-term return as capital growth progresses. On the other hand, investing in commercial property can yield stronger cash flow in the short term, especially since rental outgoings can be passed into rental rates.

4. Capitalise on rental demand: With an average 13.6% annual increase in rent, investing in Perth’s real estate for rental may be a smart choice. While this is correct, there are various market trends and factors to consider. A Perth buyer’s agent can filter your available options and advise property purchases that leverage this growth.

Choosing the Right Buyer's Agent in Perth

By now, you understand the key strategies to ensure your success in the Perth real estate investment market. However, there are numerous buyer’s agents out there. How do you know which professional is right for you?

Checklist for Essential Qualities of a Good Buyer's Agent

• Exclusively a buyer agent

• Relevant education/certificaion

• In-depth market knowledge

• Local expertise

• Strong communication skills

• Adaptability and problem-solving skills

• Exceptional time management

• Integrity

Building Trust with Your Buyer Agent Perth

While the above checklist is a great starting point to assess your potential buyer’s agent effectively, it is not exhaustive. Below are some actionable steps you can take to ensure you partner with the right Perth agent.

• Interviewing potential agents: This is where you evaluate the agent to determine whether they have the essential qualities needed. Ask about their experience in your desired investment niche. Also, assess their negotiation skills by asking them to walk you through some experiences in which they nailed a strategic purchase price.

• Checking references: While it’s important to listen to the buyer’s agent talk, you also want to read what their past customers are saying about their service. This allows you to review their success rate to determine if they are fit for your real estate investment in Perth.

• Understanding fee structures: The buyer’s agent accepts payment on three main fee structures. In the commission-based model, you pay 1%–2.5% of the property purchase price. It could also be a fixed rate where the process stays the same regardless of property price or hourly payment. Ensure you understand and agree with a buyer’s agent fee structure before working with them.

Conclusion

Real estate is a lucrative industry to invest in the beautiful capital city of Western Australia. Factors like economy, government, demographics, etc. affect the overall state of the market. Not to mention that real estate investment in Perth comes with challenges and key considerations. Fortunately, you can rest assured of maximum ROI by partnering with a reputable buyer agent in Perth who will work out the process.

Contact us to get started on your journey to overcoming real estate investment challenges in Perth.