Best choice in Perth

Viewing 14 posts - 1 through 14 (of 14 total)

Boothy
Participant
@boothy
Join Date: 2003
Post Count: 7
July 17, 2003 - 12:03 pm
Greetings All,
Thanks to the forum members who have assisted with my previous enquiries.
I have been researching IPs in Perth metro and am tossing up between something north to $250k or two at Armadale for the same price. Armadale is more working class so therefore more likely to rent positively, I think while north is more solid and maybe better capital gains material.
Does anyone have any suggestions which would be the better choice considering I am just starting out.
Cheers,
Boothy
davidfemia
Member
@davidfemia
Join Date: 2003
Post Count: 89
July 17, 2003 - 3:08 pm
Hello Boothy,
There was a recent discussion on this that you may want to look up. My opinion is North without a doubt.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.au
Boothy
Participant
@boothy
Join Date: 2003
Post Count: 7
July 18, 2003 - 1:49 am
Thanks for your reply David. I did read those forum entries but was trying to work out whether to invest in one single property of whether two in another area may be a good option. For instance Belmont has been bandied about as go ahead, Joondaloop the same, others have been pushing for Kiwana. From a distance it is a bit confusing.
Boothy
Justin
Member
@justin
Join Date: 2003
Post Count: 18
July 18, 2003 - 3:12 am
Hiya Boothy,
I think you have to decide what you want out of the properties. If your chasing good capital gains then maybe north is better, however if your after neutral or positive geared properties then maybe Armadale is better. There are many different strategies and each one works differently with every property. Once you work out what you want out of your investing it is much easier to decide which strategy, and which property, suits you.
After saying all that I agree with David. North is the better option. A good home in a good area will always perform better in the long run, just make sure you do your due diligence. Know what your getting into and have a strategy to get out if you need to.
Good luck,
Justin x
Jeanne
Member
@jeanne
Join Date: 2003
Post Count: 11
July 18, 2003 - 3:15 am
Hi Boothy,
I reckon go for two cheaper properties in Armadale. I recently read that vacancy rates over there are about 1%. I don’t know what it is up North though.
Personally i’d go for two because the collective rent is higher than one property of the price of two. Armadale should go up in capital growth but that’s only my opinion. I’ve recently got a property in Medina and if you drive up that way which is past Armadale, there’s a whole lot of new estates going up for sale. So in the long term Armadale should have growth.
Hope that helps.
Regards
Jeanne []
Boothy
Participant
@boothy
Join Date: 2003
Post Count: 7
July 18, 2003 - 10:03 am
Gooday Jeanne,
[]Thanks for your suggestion. I have a friend living in Kardinya and working at Armadale and he told me about the good rental prospects there. I still have a couple of weeks but I appreciate your opinions.
Boothy
Boothy
Participant
@boothy
Join Date: 2003
Post Count: 7
July 18, 2003 - 10:08 am
Greetings Justin,
[]Thanks for your ideas. I tend to lean your way but I also lean the other way as well as I don’t pay much tax, on a pension, so two closer to positive gearing may be the better option. As I said to Jeanne I am still looking for another couple of weeks and intend speaking to David soon before I jump either way,
Thanks for you help,
Alan
benson
Participant
@benson
Join Date: 2003
Post Count: 101
July 18, 2003 - 3:48 pm
Boothy,
While you can still get property in Armadale in the $130K to $150K range the capital growth has historically been far lower than in the northern corridor of Perth. I would suggest that if you did a comparison of median prices for the areas and factored in an estimate of the various rental returns over the last 10 years say, the northern suburbs would be showing a far superior return (considering both rental return and capital growth even allowing for increased holding costs).
I guess its all about what you want to achieve, however I would like to think that you would need a reasonable rate of return to justify investing your money.
Happy hunting.
caz_in_perth
Participant
@caz_in_perth
Join Date: 2003
Post Count: 29
July 18, 2003 - 11:19 pm
Hi Here is a comparison chart I’ve had lots of fun with the last couple of days.
http://www.aussiehome.com/trendCharts/default.asp
We too looked at Armadale but decided that the rental vacancies were too high. If you look in The West to let section there are columns of them and some have been there a while so I don’t know where the 1% vacancy rate comes from. Somebody else mentioned Medina as an alternative if you want to get two. When I rented my Medina property out I had a lot of applicants and let it within a week to a great tenant. Just one example of course but my two cents worth
KuRCe.
Member
@kurce.
Join Date: 2003
Post Count: 8
July 19, 2003 - 4:51 pm
Caz in perth,
Are you aware of any web sites that have chart trend info for victoria like what you have linked to.
Cheers,
Chris
Jeanne
Member
@jeanne
Join Date: 2003
Post Count: 11
July 21, 2003 - 6:16 am
Hiya Caz in Perth []
I got the 1% from the latest copy of the Australian Property Investors magazine. Not sure how the % is calculated though.
Cheers
Jeanne
Boothy
Participant
@boothy
Join Date: 2003
Post Count: 7
July 21, 2003 - 11:34 am
Thanks folks for your thoughts.
I am starting to wonder about the figures in the API magazine as well. Springwood is shown as renting for an average of $320 but I have not seen anything above $280 but the norm is $240 or less.
Thanks for the chart Caz it brings up some interesting comparisions. Thanks also for your thoughts on Medina I will make a few enquiries. What is the rentals in Medina? Do they compare with elsewhere?
Cheers,
Boothy
caz_in_perth
Participant
@caz_in_perth
Join Date: 2003
Post Count: 29
August 4, 2003 - 2:19 am
Hi Boothy
I have been getting $130pw for the last 12 months, could be up to $150 if I did a repaint but I prefer to keep the rent low as I have a nice tenant and it is positively geared. I just put it on the market at $110 000. The property next door just went on for $128 000 so we’ll see how they both do.
You could hedge your bets if you want two and go for both areas BTW I heard that a marina development similar to Hilary’s is planned for the Cockburn area so proximity to that and Fremantle makes south western suburbs attractive to me. (hence I am selling in Medina so I can buy a PPOR with ocean views in Yangebup, can’t have both unfortunately but I’ll be buying another IP asap)
Di_Cam
Member
@di_cam
Join Date: 2003
Post Count: 13
August 4, 2003 - 12:52 pm
Hi David,
Just curious to understand why you feel the North is a better place to invest than other Perth localities. I kind of agree with you but don’t have any reasons other than gut feel to back it up. Your comments are appreciated.
Thanks,
D
Hello Boothy,
There was a recent discussion on this that you may want to look up. My opinion is North without a doubt.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.au
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