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The house was built in 1986 double brick on a concrete slab. The property is currently quite highly negatively geared, but I am not going to buy another place this year, 2005.
2005 for me will be a year for consolidation.
I bought the place in Golden Bay in November 2004 and prior to that purchased a place in Hobart in 2003 showed capital growth of 40% last year and caused an increase in rent of $30 per week.
I am not that keen on higher risk properties in regional centres etc. I try to purchase in good quality areas which appear to be undervalued. I think Golden Bay is such a place. There is no sewer, which keeps rates low for the moment and the impending train and freeway will only make Golden Bay more attractive.
By the way I’d like to mention that I have bought all my IP’s sight unseen and over the internet. I myself live in Melbourne in a Blackburn in a dump which we bought and renovated. We took a $165K house and after renovations had the bank revalue it at $750K. My other belief is quality thoughtful renovation is sure to add value beyond the sum of the materials and labour.
The house is approx 400-500metres from the beach. The street ends at the water. It is currently rented at $150 but will be raised to $160 in Feb when the lease is renewed. I think this area is still undervalued and is equidistant from Mandurah and Rockingham providing options for prospective renters.
Hi Guys,
I have recently purchased a place in Golden Bay, 5 minutes to the beach for $217K. Has anyone else been looking at property down there? I think it is still undervalued for its location and the larger blocks of land available there. Mine place is 860sqm and the house is a 3bdr 2WC home. Any opinions or comments would be most appreciated!Guys,
Whilst I do not have a crystal ball, I have the next best thing. Lots of research!
I looked at the Perth real estate market recently and eventually purchased in Golden Bay due to its location equidistant between Mandurah and Rockingham. I also felt the lack of deep sewerage, at the moment, meant block sizes were still large. Once the sewer is put in block sizes will become smaller. The future train connection from Perth and freeway are all pieces of infrastructure that will make Golden Bay more attractive. Also the Rockingham Mandurah road hugs the coastline quite closely at Golden Bay and Singleton. This will cause prices to increase when subdivision of real estate occurs and blocks and houses go on sale on the other side.
My purchase plan is to buy and hold forever. Rental is quite low at the moment but escalating prices for the region are sure to have an impact here.BTW I am not from Perth and actually live in Melbourne. All this info was sourced from government sources and articles published on the internet. I bought sight unseen as I have previously in other states with much success.
Hope my prediction, through research, comes to fruition.
Cheers
Bruce
Thanks Guys for all your input! Big Rob, I have looked at Geraldton but decided to go south of Perth as I have heard the beaches are fantastic down Mandurah way. Also Golden Bay is a lot closer to Perth and the pending train line and sewerage would all be beneficial for future capital gain. At least I’m hoping this creates an impact.
Cheers
Bruce
Thanks Mick,
I did look at Waikiki and Warnbro but like the idea of Golden Bay and Singleton for its fishing village style and possible capital gain. What sort of capital growth do you think the region will have over the next 12 months.
Cheers
Bruce
