It’s no secret that the Western Australian property market needs more investors. With vacancy rates at or near record highs across the state and rising rents, there are good opportunities for investors to enter the market and help provide much-needed rental housing.

While investors have been less prominent in the market in recent years, real estate investing remains a popular form of investment, with the potential to reap many long-term financial benefits for investors.

If you’re new to investing, here are a few things to keep in mind.

First, your investment is not in where you would like to live, but in what tenants want. It’s important to identify your target market and put yourself in their shoes – is it a large family, retirees or young professionals? Once you identify that, you can look at features that would interest them.

Try not to get carried away with a particular suburb because you prefer the location. Research is key, which is why it’s important to look at a suburb’s data before deciding to buy in that area.

Identifying successful properties requires analysis of supply and demand, knowledge of local demographics, constant market monitoring and knowledge of other key growth factors.

If you read about a suburb that exploded, chances are it’s already too late to buy in that suburb. Instead, the suburbs likely to outperform over the long term are the ones to consider investing in.

It is also important to ensure that you have a sufficient cash reserve once you have purchased the property. This will help you in the event of circumstances such as repairs, rising interest rates or tenants leaving.

If you are looking to renovate, be sure to prioritize items that genuinely add curb appeal to the property and are more likely to generate better rental returns. A fresh coat of paint can make a property feel fresher and would, in most suburbs, be a better option than installing a swimming pool.

If you find the research process overwhelming, be sure to contact a REIWA Buyer’s Agent. Not only can they take hours of research out of your day, but when you find the right property, they will act and negotiate on your behalf during the transaction process, ensuring you get the best result.