Last year, WA investors on average benefited from total returns of 17.9 per cent including capital growth according to property research firm CoreLogic.
With 2022 shaping up to be another bumper year, the Perth property experts at Momentum Wealth say it is the right time for investors to review their property investment strategy.
REIWA is forecasting values across Perth to rise a further 10 per cent in 2022 alone.
Momentum Wealth property management team leader Amanda Kroczek said being on the front foot will be key to making the most out of these gains.
“It’s all about being proactive while the market is performing well,” she said.
“Investors who take the right steps now to maximise performance are the ones who will benefit from greater returns not just in these immediate conditions, but over the longer term too.”
Amanda said three key strategies could help investors get more from their Perth property.
1. Look for ways to add value to your property
With Perth experiencing some of the strongest rental conditions across Australia, it is a great time to take a closer look at your investment property to identify where you could add value.
“This could mean exploring the potential for a dual-income strategy to attract higher rental yields, or undertaking minor enhancements or renovations to improve the capital value and market rent of your property,” Amanda said.
She said given recent market growth, many investors would also benefit from reviewing their equity position.
“Investors can also look at ways to leverage the equity built up in a property,” she said.
“It’s fantastic if your rental property has increased in value, but it makes good financial sense to put that additional equity to work enhancing the value of your asset or expanding your property portfolio.”
2. Consider your property’s performance from all angles
Evaluating your property’s performance from a 360-degree angle will be key to unlocking maximum value according to Momentum Wealth’s property advisors.
“Property investment success has always been a sum of many parts,” Amanda said.
“It’s never just about buying the right property, it’s also about how you manage that property on an ongoing basis to enhance returns – and that takes more than good property management alone.”
Amanda said collaboration between Momentum’s in-house property investment experts had been crucial in boosting the performance of their own clients’ portfolios.
“When we’re looking at our clients’ properties, we’re not just considering how we can maximise rent from a property management perspective, we’re also working with our in-house finance brokers to assess how we can enhance rental cashflow from a lending angle too,” she said.
3. Have a skilled property management team in place
With 2022 marking the third anniversary of the pandemic and the year WA transitions to living with COVID-19, Amanda said it was more important than ever to consider the value your property manager delivers.
“Having a skilled property manager is going to be particularly crucial now that WA has re-opened its borders,” she said.
“This is going to bring about new opportunities and challenges across the rental market as more people relocate to Perth, so investors need to be confident their property is being managed in a way that optimises performance.
“Now is the time to get more from your investment property, and to re-assess your investment strategy from all angles to ensure you’re making the most of the opportunities on offer.”
Momentum Wealth is an award-winning, Perth-based property investment advisory dedicated to helping investors plan, grow and manage their property investment portfolios for maximum returns. To receive expert feedback on how your property is performing in 2022, visit the website to complete your free property performance check.