Perth property investors told to batten down the hatches

Despite increasing vacancies and softening yields being seen across Perth, one property expert is encouraging investors to hold tight and wait it out.

Momentum Wealth’s Damian Collins recently told Property Observer that despite rents being lowered by investors in Perth, the best approach for those with properties is to wait it out.

“I don’t see rents rising for the next six to nine months,” Collins said.

“But having a bit of patience is important. Perth is still a high growth city in terms of population. There are a lot of economic opportunities.”

More tenants are moving out than previously seen, with many breaking their leases causing a significant rise in the vacancy rate to the mid 3% range.

His suggestion for investors was to ensure they price the properties at fair value.

“It’s better to have a tenant in there than to have it sit vacant,” he said.

“For an investor who bought 12 months ago, your [property’s value] may have gone from $480,000 to $520,000 or so, for just a $10 a week rental drop. Capital value has gone up over that time so it has to be seen in context."