The WA State Government commitment of $17 billion worth of infrastructure projects has sparked interest in the state from interstate and international property investors. As confidence starts to rebuild in the WA property market many investors are starting to ask if this is the right time to get into the market so as to enjoy the benefit of a period of capital growth.
Let’s look at some recent sales in Rockingham to see what’s on offer for investors.
21 Liechardt Loop, Rockingham
Sold price: $415,000
Rental income p/w: $450
Rental yield: 5.64%
This 5 bedroom, 2 bed, 2 car home would have been a fantastic purchase for an investor. While the price has declined 8% since its previous sale date in 2010, the excellent rental yield of 5.64% makes this an attractive prospect for those investors looking for positive cash flow.
Located close to the heart of Rockingham, this family home is located in the perfect position to attract long term family tenants.
5 Henry St, Rockingham
Sold price: $295,000
Rental income p/w: $300
Rental yield: 5.29%
This 3 bedroom home has a generous backyard and is located within minutes from Rockingham train station. What makes this property great is that it’s low maintenance, with the gardens and landscaping already done. This single level home would appeal to those looking for a sea change in retirement or young couples looking to live near the beach. Either way, this was a good buy for the price.
196 Kent St, Rockingham
Sold price: $675,000
Rental income p/w: $490 (last advertised in 2014)
Rental yield: 3.77%
While the rental yield isn’t as attractive as other options in the area, this huge 1012 m2, 4 bedroom home is only metres from the crystal blue ocean. It’s certainly at the top end in terms of price, but what you get for your money means you will be set up to maximise any capital growth over the next 5 or 10 years. With a large backyard and entertaining areas, it could be possible to rent out this home for over $550 per week, lifting the project yield to 4.24%.
With some real bargains on the market, Rockingham and surrounding suburbs appear to be an underrated investors paradise. With strong rental returns on properties close to transport connections, shopping centres and stunning beaches, it may be time to consider buying an investment property here.
Before you do, chat to one of our Mortgage Specialists to see how we can help structure your investment loan.