On the REIWA website (WWW.REIWA.COM.AU), REIWA provides an excellent profile report for each of the suburbs of Perth. This profile is based on 2011 Census data. Let’s look at 4 suburbs located South of the River. If we take the suburbs of Beeliar, Canning Vale, Hammond Park and South Lake, we see that the the rental ratio’s vary quite significantly.
According to the 2011 Census, Beeliar Rental Properties represented 22% of the total properties in the suburb. While in Canning Vale, Hammond Park and South Lake Rental Properties represented 16%, 18% and 26% of total properties. As we can see there is a 10% difference between the suburbs of Canning Vale and South Lake.
Looking at the preceding data you might think, okay if I want to rent a house then South Lake would be my best bet as they have the highest percentage. Alternatively if you were a property investor you might be tempted to say, well there are less rental properties available in Canning Vale so that’s my best chance to get a good yield as there is a lower percentage of rental properties.
Would you be correct in making these statements?
Let’s investigate further. Let’s look at the number of occupied dwellings and combine that figure with the rental percentage of properties:
Rental properties 22%
Number of occupied dwellings 1,955
Therefore the estimated number of rental properties 430 (29% of 1,955)
Rental properties 16%
Number of occupied dwellings 9,586
Therefore the estimated number of rental properties 1,533 (16% of 9,586)
Rental properties 18%
Number of occupied dwellings 913
Therefore the estimated number of rental properties 164 (18% of 913)
Rental properties 26%
Number of occupied dwellings 2,293
Therefore the estimated number of rental properties 596 (26% of 2,293)
So interestingly we see that although South Lake in the 2011 Census had the higher percentage of rental properties, Canning Vale with the 10% lower percentage actually had the higher number of actual rental properties.
What this tells us is that you must always do your research and never rely on just one factor when reaching your conclusions based on that research.
Whether you are an investor looking for an investment or if you are simply looking for a new home, with interest rates at an all time low and with some commentators forecasting a further possible rate cut in 2014, now is certainly a time to borrow to get into the property market.
Don’t hesitate, contact me today on 9317 4814 for an obligation free discussion regarding your home loan needs.