How will your investment property perform this year?


2022 is shaping up as another bumper year for Perth’s property market, but positioning your property correctly will be crucial to maximising your investment returns. We recently caught up with our property management Team Leader to discuss how owners can set themselves up for success in the months ahead.

Last year was nothing short of remarkable for Perth property. On average, investors pocketed total returns of 17.9% including capital growth of 13.1% according to CoreLogic.

The good news continued on the rental front, with the research firm reporting that Perth house rents jumped by over 10% during 2021.

So, after an exciting 12 months, what can we expect this year?

2022 holds plenty of promise

The outlook for the year ahead is very promising. REIWA is forecasting values across Perth to rise 10% in 2022 alone. Already, January 2022 figures pointed to a thriving market, with CoreLogic’s Perth home value index increasing 0.6% across the month – the largest rise since May 2021.

Much of this growth is being fuelled by a buoyant state economy. WA continues to offer strong job opportunities. Australian Bureau of Statistics figures show a remarkable 120% increase in job vacancies since early 2020, which marks the highest growth of any state or territory.

With an estimated 60,800 employment positions available as at the end of 2021 (ABS), Perth’s thriving state economy will likely attract an influx of jobseekers in the years to come, in turn driving increased demand for housing.

Make the most of your property

The upshot is that Perth’s property market looks poised to deliver healthy future gains. But managing your property correctly will be critical in making the most of these changes.

Amanda Kroczek, Team Leader of Momentum Wealth’s property management division says three key strategies could help investors get more from their Perth property.

“It’s all about being proactive while the market is performing well,” says Amanda. “It comes down to understanding local market dynamics and aligning your rental strategy accordingly.”

With this in mind, Amanda shares three key tips that can help your investment property outperform the market in 2022 and beyond.

1. Explore your property’s full potential

Take a closer look at your investment property to identify areas where you could add value. It’s an exercise where a set of expert eyes can help.

Amanda says, “It’s important to recognise and take advantage of opportunities to add value. This could mean undertaking minor enhancements or renovations to improve the capital value and market rent of your property, or exploring the potential for a dual-income strategy to attract higher rental yields

“Investors can also look at ways to leverage the equity built up in a property. It’s fantastic if your rental property has increased in value. But it makes good financial sense to put that additional equity to work enhancing the value of your asset or expanding your property portfolio.”

2. Consider your property’s performance holistically

2022 is the year to shine a spotlight on the value your property manager delivers. A pro-active property manager can help you take an overarching view of your property and discover opportunities to unlock further value.

It pays to look at both sides of the ledger too. Amanda explains, “Right now interest rates are still very low, but they won’t stay this way indefinitely. That’s why we are collaborating with our in-house finance brokers to help our investors review their finance options.

“Switching to a more competitively-priced investment loan can deliver multiple benefits – supporting improved cashflow, reduced costs and enhanced returns.”

3. Have a skilled property management team in place

The New Year marked the third anniversary of the pandemic. It’s hardly a milestone to celebrate, but it has reinforced the value of having a strong property management team – one that can help you navigate the changes brought about by the pandemic.

“Having a skilled property manager is going to be particularly crucial now that WA has re-opened its borders,” says Amanda. “This is going to bring about new opportunities and challenges across the rental market as more people relocate to Perth, so investors need to be confident their property is being managed in a way that optimises performance.”

“Now is the time to get more from your investment property, and to re-assess your rental strategy to ensure you’re making the most of the opportunities on offer.”

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