There are two sides to every coin, and while owning an investment property in Perth comes with a lot of benefits, you should also be aware of the various expenses that come with a Perth property.

Things like council rates, insurance and maintenance can catch home buyers or investors off guard if they haven’t planned for these expenses. What are these ongoing costs? Don’t worry, here are a few ongoing costs that are required to maintain your Perth investment property:

 

  • Insurance

If you own a property in Perth, the chances are that you will want to get landlord insurance. This insurance will protect you if and when the unforeseen arises like bushfires, floods, malicious damage or a lack of rental income from tenants who have damaged the property or failed to pay rent etc. Depending on your insurance provider, you will be covered for different things, so be sure to go through your options before committing to an insurance scheme.

 

  • Interest

An unavoidable and obvious expense to consider. If you purchase a property and obtain a mortgage, then interest will be charged on that loan. Currently, interest rates are at a low (you’re looking at 5% or less) but traditionally, interest rates have been higher than that.

 

  • Strata fees

Strata management exists when you own a unit or a townhouse in a complex that has common property. In these situations, you will have to pay a strata fee. This helps pay for the maintenance of the common areas.

 

  • Rental management/property management

Unless you are renting out the property yourself and doing all the managing yourself, you will probably hire a property manager in Perth to do the rental management for you.

 

  • General maintenance

Almost every property, unless completely brand new, will need things to be maintained. You might have a broken water heater, you might need a fresh coat of paint, you might need some new carpet, you might get leaky taps, and your roof might leak. Repair and maintenance are part and parcel of investment property upkeep.

 

  • Council rates

Depending on the council that you are in, rates may differ. However, please note that when you own property, you will have to pay your council rates to make sure that the council keeps running. These are usually paid quarterly.

 

Should you invest in property in Leederville?

After considering the above, for those who believe it’s the right path, property investing in Leederville and Perth suburbs early can make a big difference to financial independence – particularly when done right. When the time comes, contact our Perth real estate agency team at ProProperty we have the expertise to guide you through this journey and set you up for a fortuitous future. You can also read our article about the advantages of property investing here.