A question investors often ask Real Estate Agents is "What is the best area to invest in'?
In Western Australia we have seen exceptional growth in both regional and the metropolitan markets.
When buying an investment property the fundamentals for long term growth include the following:
One area recommended for investment by Russell Poliwka, Principle of First Western Reality, is Joondalup City Centre. Joondalup City Centre is still young but has all the right fundamentals alongside a strong short to medium term commercial and residential growth potential.
- An area that has an efficient public transport system.
- An active local government that is pro-business.
- A variety of retail outlets.
- Good schooling
- Location, such as beaches, restaurants, shopping centres etc
Like many other centres the Joondalup City Centre is experiencing exceptional capital growth and ever increasing levers of amenities.
Education in Joondalup is second to none in Australia with a variety of primary, secondary and tertiary institutes. Joondalup is also home to the Police Academy.
Over the recent years the quality of commercial and residential buildings has shown remarkable improvement over what was envisaged in the early stages of the City Centre. There are currently a few and there will be more high rise buildings.
The commitment by the Lakeside Shopping Centre to the expansion on the corner of Boas Avenue and Grand Boulevard will make this particular Shopping Centre one of the largest in Western Australia.
Another area which is seeing expansion within Joondalup is the student numbers, which will increase over the next five years as Edith Cowan University finalises the relocation of their administration centre to the Joondalup campus.
For investors there is a strong case to be made for investing in Joondalup City Centre
It should also be noted that there are other growth areas within the Northern corridor adjacent to the railway line and freeway which are also experiencing huge growth, Clarkson, which is better know by its marketing name of Somerley being one.
Prices being achieved are much higher than was expected by the Developers in the not so distant past. Land sales in areas such as Butler and Jindalee are experiencing massive demands. The demand for land has seen a rapid price increase, which while good for investors, is not so good for the young home owners on the first rung of the ladder, it is becoming more and more difficult to make the decision to buy and develop your first home as the cost to join the ranks of home owners has accelerated to such an extent where it has created different classes. It is essential that people who have the income and capacity to acquire property should do so as a matter of priority.
The principle residence of home owners is one of the few genuine tax free investments left. The family home is exempt from capital gains tax and is probably the best form of "superannuation' for those planning retirement. They can cash in on their family home and downsize with surplus capital to enable them to have a quality lifestyle in retirement.
Source Realestate WA (North) Friday 7th July.
Russell Poliwka, Principle First Western Reality.