Message for Property Investors
EXECUTIVE SUMMARY
Western Australia property market has been well known for its stability. Yes, while there are always corrections in the market, however, long term, WA property market has produced an average of ~8% annual growth. In 1970, median house price in WA was $17,500. And in 2016, the median price was $566,000. As you can see from the graph below, the property market in Australia is always trending up:
This presents a great opportunity for investors. As you’re aware, with property investing, you can benefit from the “Power of Leverage”. What does it mean? With $100,000 you can control a $500,000 asset (ie. 20% deposit and 80% borrowing). Which means, if the asset moves by 8% from $500,000 to $540,000, your money grows from $100,000 to $140,000 = 40%* return (* minus costs).
While you probably can achieve similar result with other investment vehicles, it is the stability of property that other investment vehicles often fail to provide. Take shares for example, within every minute and every day, prices can fluctuate. Therefore, if you use leverage approach for trading, it can prove to be very risky.
THE CHALLENGE FOR INVESTORS
The challenge for an investor is to buy the right type of asset/property in the first place. A lot of our clients came from an experience where they just simply bought any property with the hope that it would increase in value. Let us tell you, that believing in capital growth alone is simply the quickest way to send our money into a pit. It is the same as saying, “Let’s open a restaurant because we can sell a burger for $20 which only costs us $1 to make”. Have you thought about the salary, running costs, outgoings, electricity, gas, downtime, holidays, etc?Â
Same with property. One can’t simply blindly buy any type of property and hoping to make money out of it. As an investor we need to understand what the running costs are and all the risks.
HOW WE CAN PROVIDE VALUE
Easy Buyer’s Agent has access to information on more than 300+ suburbs in Western Australia. We also have access to PRE, POST, ON, OFF-market properties. Therefore, we can help you investors buying the right type of asset. You don’t have to rely on just what you know.
We offer end-to-end service solution where you as an investor just stands behind us, and let us do all the hard work: the research, asking all the right questions, negotiations, etc. We will also present you with a very detailed Investor Report. That way, you know straight away, the profit projection and ROI position of the asset we’re about to purchase.
CALL TO ACTION AND CONCLUSION
Please, don’t just blindly buy any property. Talk to us now on +61 404 457 754 or email info@easybuyer.com.au. We are more than happy to help and we’re confident we can provide a lot of insights and information.
