WA The case for investing in WA and SA

Hi all,

As an investor ive generally steered clear from WA and SA real estate.

The main reasons being that WA has historically seen to be primarily a mining based industry, while SA just hasn't had enough people/population.

I've heard on people from the forums about some of the merits of investing in these areas, so I was wondering what was the main attraction of these states, and also if there were any specific parts in these states that offer good potential (e.g city suburbs, regional areas) and why you view these as providing future growth and returns.

 

For the long term, always Sydney and Melbourne.

 

With Sydney and Melbourne being so expensive many investors are looking for cheaper alternatives. With this in mind, WA and SA are looking much more attractive from an affordability perspective. They also offer much higher yields with subsequent lower holding costs. This is likely why many investors choose to look at Brisbane within the past 5 years.

On another note, historically metro markets have performed relatively similarly up until the last decade. It has only been since 2012 roughly where Sydney and Melbourne have blown other markets out of the water. Brisbane, Perth, and Adelaide saw below-average growth over the past decade. Therefore these areas may be primed for future growth (next 5 years) based upon their current position within their own cycle.

None of this takes into account specific areas in those two markets as this is simply a holistic perspective.

 

I’ve been to investment seminars advising you should invest in any capital city in Aus except Tas/Hobart. You would have done ok not taking that advice. I remember people’s fear of investing in Brisbane within the last decade due to the floods. Now everyone wants in.