PROPERTY investors can now achieve rental yields of 5 per cent and the prospect of rising capital growth in the coastal suburb of Yanchep, according to Capricorn Beach estate’s Richard Cull.
The estate manager said a big drop in the Perth rental vacancy rate during the past year would put pressure on weekly rents and would propel the local property investor market over the coming year.
“The latest REIWA figures show that the rental vacancy rate in Perth fell to just 2.8 per cent during the December 2018 quarter – the lowest it has been in five years.
“Traditionally, when the rental vacancy rate falls below 3 per cent, there is an upward pressure on rents.
“Rental yields in Perth are now starting to rise and the latest Core Logic figures for December 2018 show rental yields in Perth are now 4.1 per cent which is now much higher than Sydney at 3.3 per cent and Melbourne at 3.5 per cent.
“However, in property hot spots such as Yanchep, astute investors can achieve rental returns of at least 5 per cent.
“There is already a growing rental shortage in Yanchep and the demand for rental accommodation will surge once major new infrastructure is complete such as the nearby Yanchep to Perth railway line.
“Brand new homes can be constructed at very affordable prices and deliver high rental returns for investors in Yanchep because demand for homes in the area is surging due to the fact that Yanchep is recording one of the fastest growing population growth rates in Perth.
For example, Mr Cull said investors could now secure homesites packaged with a completed house for about $320,000 in the Village release at Capricorn Beach estate.
“When constructed, these homes will deliver a weekly rent of between $300 and $340 based on advice from local agents who are looking for new quality rental listings.
“The homesites are low maintenance 315sqm lots and once the new homes are constructed, they will offer renters the freedom to move in immediately.
“The Village release at Capricorn Beach is located in a prime location as it is adjacent to the local shopping precinct and only 800m to the planned Yanchep train station which will start construction this year.
“The adjacent future shopping centre and tavern precinct means that residents can easily walk to all nearby amenities.
“A major new secondary college also opened in Yanchep last year to complement the existing Yanchep Beach Primary School, increasing the appeal to young families who rent.
“Apart from achieving high rates of rental return, investors can still also qualify for generous tax benefits when they buy a brand new home.
“Looking to the longer term, astute investors can now build a brand new home in the Village release at Capricorn for little out of pocket expenses and reap the benefits of rising capital growth over the coming years that will be driven by Yanchep’s prime coastal lifestyle location, improving infrastructure and surging population.”
Richard Cull can be contacted on 0409 996 733.