Hello Everyone
I have been trying to zero in on an IP for about 1 year and now am at my wits end, and I am not getting much help anywhere. I have been very skeptical with a lot of properties I have seen. For example, I have seen countless units at Wembley/Glendalough, and though prices have fallen from January 2010 (but seems to be on its way up again), I am worried about the amount of units/apartments available there (although rental potential seems good). I have also checked out further areas like Midland/Midvale but worried about rental potential. I even checked out Como.
To cut to the chase, I am approved for $300,000. With the amount, where and what type of properties would you buy in Perth? I am not entirely keen on interstate properties at this juncture, or keen on locations that are dependent on the mining industry.
Any constructive advice very much appreciated.
Webley and Glendalough are good areas I think. Sure there are a lot of units there, but have you ever been to the inner suburbs of Sydney and Melbourne??? There is still a good demand from tenants in these suburbs (but I havnt been there for a few years so I do not know for sure). They are close to train stations, have good buses, close to the freeway and are close to shops and the CBD so all fundamentals are good. I think you are more likely to get above average growth here than in Midland!!!
Make sure you check RP Data for the latest sales. A suburb report costs you about $30 so it is a small price to pay to make sure you are only paying fair market value. TIf you pay more than the market value for a property, it will take you years to make up for that mistake.
I am also with you on not wanting to invest interstate or in mining towns- that is a lot of risk for a 1st IP IMO.
Luke.
Hi Azalea,
You are looking around the correct areas, but those areas are not just limited to units in Glendalough / Wembely. I would say if you want to maximise the ability to rent a property and still have good capital growth, here are a few industry tips:
1) Aim for townhouses or villas (dont have to be that close into the city – as closes as you can for your budget)
2) Attempt to get into smaller complexes (less then 6)
3) Quiet streets.
4) Older properties.
5) Public transport is close, but not too close to cause noise pollution.
6) Where local goverments are spending money.Number one tip to keep in the back of your mind; don't over analyise. Always know the market value and don't pay over as it's a buyers market currently.
I hope you're getting along fine, but if you need a little more guidence. Feel free to get in contact with me as I have two articles one Strata properties which may be of some help for you.
Too many small and very old units in Glendalough for my liking.
Still money being poured into Midland albeit slower than 8 years ago. The Midland redevelopment project must be getting close to completion by now.
Don't neglect some southern Perth suburbs – rent returns in these areas can be better than those achieved in the northern suburbs. (Obviously this is a property by property issue). There are some southern suburbs with 'potential' written all over them. Mind you potential is an overused word too.
Derek wrote:Too many small and very old units in Glendalough for my liking.But if you can pick up a reasonable sized unit in a building that is in good condition, then I think you will be a good chance for above average growth.
Luke
Azalea,
I think the Wembley/Glendalough areas are possibly some the best areas with a budget of 300k. Other good area where you can pick up townhouses for around 300k is Yokine, and even Bayswater. Otherwise you may have to look in areas such as Koondoola or Girrawheen.
One thing to remember is that while some of these areas are perhaps less desirable for you or me to live in there is still strong rental demand in these places. An investment property in not a place where you want to live, it is an investment and we need to try and remove any emotion from the buying process. It has to look good on paper before we worry about the way it looks or the stigma that surrounds the suburb.
Koondoola, Girrawheen and Balga are still only less than 15km from the city and have plenty of infastructure around them. They are not new suburbs. The other thing about these suburbs( as well as Glendalough and Wembley) is that the all fall under the City of Sterling who are committed to revitalising these areas. See article
http://fremantle.inmycommunity.com.au/news-and-views/local-news/423m-sought-for-city-centre-project/7576527/
Their website also contains a lot of useful information.Try not to over analyse. Perth is going to see some good growth in the next 12-24 months so my advise would be to get in sooner rather than later because if we have another boom, which is highly likely, then it will be too late.
Good luck!
Corie
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