Perth house prices still in decline, CoreLogic data for October shows

You probably have heard from your friends or have read a few articles about the benefits of property investing and how it can reap you lots of profit. Perhaps, these things have encouraged you to purchase a new property and hopefully earn lots of money from it.

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The decrease in property prices

However, your purchase is only one single step to become a property investor. Many people want to invest in real estate. Few put forth the time or effort to learn what they need to invest successfully. First, you need to know whether or not real estate investing is right for you. Then, you should know the basics.

Real estate investing offers attractive benefits, including cash flow, appreciation, diversification, tax deductions, and competitive returns. It’s truly a worthwhile long-term investment.

There are many advantages to investing in real property, but the most popular is cash flow. One of the biggest reasons why people love to invest in property is income in the form of rentals, gearing, etc. However, cash flow doesn’t always mean positive. Positive cash flow means there’s money left over after paying expenses. Negative cash flow means there are more expenses than income.

Another advantage of real estate investing is appreciation. This means that the property you bought today will more likely to increase in value over time. Appreciation is a potential added benefit of real estate investing, but there’s no guarantee it will happen.

Market fluctuations or shifts in local economics can disrupt the local supply and demand. That changes the value of a property. This is especially true to Perth’s real estate market.

Today, Perth’s house price slump continues and this frustrates many property investors holding out for a long-awaited recovery. This hurts a lot of investors who have been waiting for many years and are now ready to sell their properties.

Read more about this Perth’s property issue right here: https://www.perthnow.com.au/business/housing-market/perth-house-prices-still-in-decline-corelogic-data-for-october-shows-ng-b881369948z