Page 2 - Newsletter Issue 10 - March 2020

Revealed: Top suburbs for WA property investors

According to the latest reiwa.com data, Medina, Armadale
and Parmelia are among the top 10 Perth suburbs for
investors to keep an eye out for in 2020.

REIWA President Damian Collins said with the Perth property
market starting to show signs of improvement, there are
some great opportunities out there for investors.

What the data shows
“Our analysis showed there are a number of suburbs that
have high rental returns for investors and the properties are
leasing at faster than the average time. With interest rates at
record lows, many of these properties are likely to be
positively geared,” Mr Collins said.

Top suburbs analysis
MEDIAN DAYS TO GROSS RENTAL “There are a lot of contributing factors that make a good
SUBURB
LEASE YIELD investment property, however suburbs that have a high
rental yield, such as Medina which had a 7.5 per cent rental
Medina 17 7.5% yield, and lower than average days to lease, are ones
to consider,” Mr Collins said.

Armadale 27 6.2% “In the 12 months to December 2019, it took approximately
17 days for a property to lease in Medina, which is well
Parmelia 14 5.6% below the Perth average of 28 days, and demonstrates the
suburb is in high demand by tenants.”
Seville Grove 20 5.6%
Of these top suburbs, eight of them are located south of the
river, with Armadale and Parmelia following close behind
Port Kennedy 27 5.6%
Medina.

“It took 14 days on average to lease a property in Parmelia,
Banksia Grove 25 5.6%
which had a rental yield of 5.6 per cent. Armadale had a
higher yield at 6.2 per cent, however it took 27 days on
Maddington 20 5.2% average to lease,” Mr Collins said.

Rounding out the top five is Seville Grove and Port Kennedy
Meadow Springs 24 5.0% which both had a rental yield of 5.6 per cent.

Investing in Perth
Forrestfield 21 5.0% “While the suburbs in this top 10 list are not rated by their
lifestyle, popularity or future growth, they have faster leasing
times and high rental yield which is important to
Clarkson 27 5.0%
investors.” Mr Collins said.

Overall Perth 28 3.9% “With Perth currently the most affordable capital city in
Australia and the vacancy rate at a low of 2.3 per cent, now is
the ideal opportunity for investors to get back into the Perth
*data in this table is filtered for suburbs with 28 or more house sales during the 12 months property market.”
to December 2019 and took fewer days to lease than Greater Perth.
SOURCE:- https://reiwa.com.au/about-us/news/revealed--top-suburbs-for
-wa-property-investors/

Need to break your lease early? Here’s what you need to know..

Whether it’s for a new job, to take on a gap year, or because Provide as much notice as possible
of changing family circumstances, there are plenty of
reasons why a tenant may find themselves in a situation To minimise any possible costs it’s best to notify your
where they need to move out of their rental home before landlord or property manager of your intention to leave as
their lease agreement ends. soon as you can. The more notice you provide the easier it
will be to provide a replacement tenant for your rental,
Ending a rental agreement prematurely isn’t something that meaning less is likely to be owed.
should be taken lightly, but there are steps you can take to
help minimise the disruption to your landlord, and hopefully Official notice should be given in writing and should at the
any costs too. very least outline the date you intend to leave and
forwarding address if you have one.
Check your state’s rental laws
Work with your property manager and landlord
Rental laws differ from state to state, but in general there
will be a specified period of notice that you will be required You may be able to come to a mutual agreement with your
to provide, and probably break-lease fees that will cover the property manager and landlord and be able to end your
cost to re-advertise and re-let. lease early, or reduce any associated costs.
You may also be required to continue to pay rental costs Regardless, it’s worth making your best efforts to help find a
until a replacement tenant can be found, or until the new tenant for the property.
end-date of your agreement. This might mean keeping the property clean and presentable
There may be legal circumstances that allow you to leave the and allowing regular property viewings to take place so that
property early, such as financial hardship, so you really do the property gets leased again quickly.
need to check the rules that apply in your state.
SOURCE: PRONEWS/Issue81February2020