Just started reading this forum, hoping to buy an investment property in Perth anytime in the next 6 months. This will be my second IP, but still have lots of questions to ask ….
Would like to buy -ve geared property to about $300 000, in established Perth suburb that is about to have the train-line mid-2007. Can expect rental between $170 – $190 pwk. First property which drew me back to the property market is a strata-titled 3BR villa for $259 000. The owners will rent back for minimum 2 years. I was keen to have a guaranteed tenant and rental. I’d borrow the full amount to purchase.
Then I started looking around at other properties in the $280 – $300k range in the same area. There are some 3BR houses on large blocks, I guess with development potential.
I am interested in capital growth, although I think I have come in too late to this area as it has gone up 50-60% in the last year! But the train line will help, and it seems like it could go up still.
My questions are:
1. What should I be looking for – will the strata-titled villa go up in value as much as a 3BR house?
2. Is it always better to try and get a large block size? I’ve seen 4BR on 800+sqm blocks at a price I could affordThese are my questions for starters [smiling]. Thanks
Personally, I think some land content is a good thing over the long term as it is the land that increases in value – the building depreciates.
It is especially good from the point of view of development or subdividing the site to either sell or develop and rent etc.
That is not to say that a villa won’t do well, but I think historically houses have done better than units/villas because of the land.
If you can find a 4br house on 800sq/m that you think will go up in value, and is able to be sub-divided, and you can afford the purchase price and the neg cashflow, then go for it.Cheers,
Marc.
[email protected]Hi paguatao
search the net for a copy of the “R-Codes” this has all the building requirements from minimium land size to window placements (if you cannot find it drop me a line and I will email you a copy) and check the building code of the property 1st ( most councils have this on the web site – look for zoning maps)
A lot of Perth is R20 , therefore 800sqm is not big enough to subdivide. Generally you would look for 1000sqm to subdivide in Perth, especially if it is in the outer suburbs.
Celeste
I agree with the previous 2 comments.
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