- Originally posted by Marisa:
Hi Mooki
Tuart Hill would be a great area to invest in for a number of reasons:Close to city and shopping centres
Has lots of schools (private & public)
Good transport and facilities in generalLast stats (May) recorded median price at $299,000, neighbouring suburbs, ie Yokine, Joondanna are substantially higher. I would say that Tuart Hill probably represents good value at present.
I would be aiming to purchase house on large block and sub-divide/develop in the next property cycle.
If this is the way you are going make sure you contact local Council (Stirling?) to establish zoning.
Good Luck. M
Thanks Marisa. I’ve actually just bought my first place in Tuart Hill recently
I bought when I was 19 so couldn’t really afford a house which is unfortunate because there are so many big blocks around this area..I managed to get a decent villa/unit which I hope does me well.
thanks for the info
[smiling]
Newbie here so go easy on me…
I believe Coogee is a suburb to keep an eye on now that the proposed marina development has received the go ahead. Any of the suburbs around Rockingham, Mandurah and beachside suburbs in-between are continuing to boom but rising property prices have forced many investors and 1st home buyers out of these suburbs. I think we bought the last $200K house in Mandurah back in Aug this year. Properties under $230K are now extremely rare and are snapped up within hours of listing.
Property prices in nearby towns of Pinjarra, Nth Dandalup and Serpentine are on the up with a bullet as some of the spillover heads inland. These small towns are at the foot of the Darling Ranges and within 20 minutes of the all the beaches, cafe strips, services and infrastructure of Rockingham/Mandurah. They are all quite lovely little towns in their own right and plenty of work nearby with Alcoa and supporting services. As the Kwinana Freeway extends commuters to Perth will only be 5-10 minutes away from the freeway. Another town on the up is Waroona south of Pinjarra with new semi-rural housing estates coming along. IMHO Harvey would also be worth keeping an eye on.
With plenty of enquity in our two Mandurah properties we’re keen to buy another IP soon but since +geared IP’s are seemingly impossible to find in Perth/Mandurah our cash flow means we can’t afford to spend more than $150-200K so we’ll soon probably be putting our money where our mouth is and looking at investing in one of these rural towns.
Further afield I’m hearing lots of talk about Capel inland from Bunbury. Same applies as above. Nice rural town close to beaches, university, infracture at Bunbury. Currently still very affordable especially compared to the hot Bunbury market and plenty of work opportunities with new mineral sand mining and increasingly diversified agricultural sector. With a current lack of rental accommodation and consequently high cost of rental in Bunbury, there is bound to be a flow on effect for Capel. Collie is another town I’m hearing plenty of murmurs about but you’d need to do your own homework as I don’t know much about it.
Originally posted by Rob_W:And it’s VERY close to the airport, too. Great for when you’re running late for the plane!
Seriously, is this an issue? I looked up what’s available after reading Ausprop’s comment, and the RE seems pretty cheap. Is this because you’re buying the Perth equivalent of the home from ‘The Castle’?
[cap]
Old houses, also a problem area which Bassendean council are trying to rectify by decreasing Homeswest housing..albeit slowly.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAnyone checked the websites recently for all Perth and WA suburbs thats been mentioned in this very informative post? I have never seen so many properties listed U/C! A bit of Deja Vu to when I was looking in Brissy and SE Qld a couple of years ago…. Surely investors can’t be purchasing these properties yielding around the 4% mark? Any comments from recent purchasers?
But WA is certainly the talk of the nation at the moment when it comes to resi IPs. Maybe thats it – the herds in, time to bail…? Noticed in the Fin today that Lomas thinks that the horse has already bolted in Bunbury. Bugger! Was hoping to flick an IP to one of them herds…
It’s WA’s time in the sun lately..how long will it last..dunno, supply will have to take over demand, which I dont think will happen anytime soon..
Then again..interest rates may rise again soon as well..
Value is based on supply and demand. And population is increasing ; have you recently looked at the population chart? There are so many more people who are looking for homes…which means there is less supply available…which also means the price goes up.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI like Warnbro, Waikiki and Rockingham. Regularly voted one of the best beaches in Australia and the train line going in is going to help immensely. Has gone up but will still show plenty of capital growth.
“Most people operate under a false ceiling which is 3 feet high” Stuart G Goldsmith
What’s everyones opinions on Clarkson/Sommerley/Merriwa/Ridgewood? I’ve got a few IPs there and they continue to perform – though wanted to see what other’s think of these areas…
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.holidayhomeswa.com.au – Holiday Homes in Western Australia
http://www.wheretostaywa.com.au – Accommodation in Western Australia
http://www.homesearcher.com.au – List your property for FREEOriginally posted by redwing:Originally posted by Rob_W:And it’s VERY close to the airport, too. Great for when you’re running late for the plane!
Seriously, is this an issue? I looked up what’s available after reading Ausprop’s comment, and the RE seems pretty cheap. Is this because you’re buying the Perth equivalent of the home from ‘The Castle’?
[cap]
Old houses, also a problem area which Bassendean council are trying to rectify by decreasing Homeswest housing..albeit slowly.
REDWING
Seriously, this is not an issue for us at all. We bought an old 3×1 on a decent block of land as our first PPoR right under the flight path (It has a great big red arrow attached to the roof that the pilots all line up with that says “This way –>”). We considered it exactly like ‘The Castle’ and my name is Dazza so that movie was really close to home so to speak.
We’ve had really good growth out of it for the past 7 years (ave. ~ 13.5% compounded p.a.) and thankfully only had to put up with the noise for the first 3 years. I love chatting to the locals out there, they always say you get used to the noise, a bit like beating your head against a brick wall…you don’t even notice it after a while.
It gets a tad scary when those big Antonov planes occassionly land, you can make out the rivets on it’s underbelly as it scoops in real low. Small kids love the excitement however.
Originally posted by asdf:Anyone checked the websites recently for all Perth and WA suburbs thats been mentioned in this very informative post? I have never seen so many properties listed U/C! A bit of Deja Vu to when I was looking in Brissy and SE Qld a couple of years ago…. Surely investors can’t be purchasing these properties yielding around the 4% mark? Any comments from recent purchasers?
But WA is certainly the talk of the nation at the moment when it comes to resi IPs. Maybe thats it – the herds in, time to bail…? Noticed in the Fin today that Lomas thinks that the horse has already bolted in Bunbury. Bugger! Was hoping to flick an IP to one of them herds…
asdf, you are right about the low yield. Our Mandurah IP yeilds around 3.8% but the attraction is the capital gain. We made an offer in Aug05 and by the time we settled 70 days later we could have put the place on the market for $30-35K more than we paid representing a whopping 15% increase in value in little more than 2 months. Our PPOR in central Mandurah has increased by an average of 23% pa in the 3 years we’ve owned it. Official RIEWA figures show an impressive average 16% pa increase in property values for this area over last 5 years and many market observers predict we will see the same rate of growth in the next 5 year period. Personally, I’d be happy if we achieved half that.
My own thoughts for the future is that Perth and surrounds will continue to experience good CG over next 5 years as the resources boom continues and a steady stream of interstate migration from eastener’s who are used to paying a lot more for a lot less in Sydney and Melbourne. It wasn’t all that long ago that you could buy a virtual palace here for about the cost of a 1 bedroom unit in Sydney. It’s not so good now but a nice family home is still very affordable.
As for Bunbury, I too think the horse has bolted. Took a drive down there a couple of months ago and was very impressed. Seems Bunbury has really grown up in the last couple of years with improved innercity street scaping, thriving cafe strip and foreshore developments. Biggest problem now seems to be a shortage of affordable properties for rent which is driving rents up for those astute enough to already have an IP in Bunbury. If you don’t, well good luck trying to get one as resi stocks are apparently quite low as vendors are hanging off selling preferring to “wait and see” how high prices go. New listings are being snapped up by investors in a matter of hours. May be house & land package is the best way to go for investors willing to wait the 12-18mths it’ll take to build.
Hey Flatout, good work re Mandurah. If the experts are right, looks like its set for another run. All the analysts are definitely bullish the Rocky – Mandurah area. But the prices are starting to match those of Brissy so I think further upside will probably be in the single digits. ie. no longer undervalued. But returns over the next couple of yrs will still be better than out East. I don’t think building in the SW is a lucrative option for investors anymore. Building costs are 10%-15% more expensive down there and have also increased over 30% in the last 12 months. But you may see same prices down there as Mandurah if this freeway finally gets funded. The other plus is I find rents in SW are about 20% more than Perth for equivalent homes.
asdf, Mandurah results really a matter of being right place right time but like many investors we’ve made a mistake or two. Sold a 3×1 in Mandurah at the beginning of the boom and patted ourselves on the back for making 55% CG in 2.5 years. Stopped smiling when the new owner sold a year later for another 80K. He’d made 50% CG in 12 months. You lives and you learns!
hey..do we have a few night owls here?
posting around midnight.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorhey..do we have a few night owls here?posting around midnight.
Redwing, when it’s midnight on the East coast of Australia it’s not in other parts of the world. I’m 8 hours behind Sydney time at the moment, so midnight posting is the middle of the arvo for me. Just hard to get a convo going ‘cos you guys in Oz all go to bed too early… [biggrin]
hi dazzling
your right.
8 hours puts you around dubaihere to help
Yes, I’m new…but don’t let that fool you..
Some good responses to date (and some very pessimistic).
Perth has always been the sleeping giant..and it still has some sleeping ‘babies’. A number of which have been mentioned (and wasn’t it nice to see the growth in some of those areas since this topic first started!).
I’m ready for property number 6. I’ll take some of your advice…but I have some of my own.
Look at some of the areas [not] mentioned…and ask yourself why?
Wanneroo (awake….doh!)
Heathridge/Beldon (mention once or twice)
Toodyay
Bellevue
East Perth (baby waking up..)I’m looking in QLD…it’s softening there. And after John Simon’s comments on the Sunday show….”investor’s sell sell”….watch n wait!
Good luck
Hi. with regards to investing in Perth or Western Australia the best advice I can give is to buy the Property investing Magazine API and read the information regarding Perth. This will help you understand more about the Perth property markets without having to rely on the knowledge of others. Then using this information have a look on the REIWA web site at properties in the regions mentioned and do your evaluations.
The bottom line here is its your money, your investments, you will need to do the hard work in reasearch to find what you are looking for, there are no shortcuts.
Hi, I’m from Adelaide & am currently running scared (started investing in 1998, bought 4 houses in one go) but just bought 3 development properties.
My ‘advice’ is to do the numbers thoroughly & throw in some contingency funds or financials. My building consultant says it’s hard to make an unprofitable deal profitable.
The latest one I bought (not settled yet) costs $223K (I put in 20% cash) and will rent for $200 per week. What I can do is extend by building a bathroom & kitchen and divide the property into 2 units, thereby increasing the yield to $320 per week. A more exciting prospect is to sub-divide and build an adjacent house, sell the old one and keep the new one.
Try to look for something like this in Perth. It exists & can be done. My contract fell through and is re-ignited because the vendor is motivated to sell.
Good luck.
Kum YinThis thread is suddenly silent…
It discovered this website a few days ago and only now managed to finish reading this interesting thread…
Where’s all the ideas and opinions gone?
I was looking around to buy my first investment property but it seems that all the prices are very high.
Can anyone explains to me what they mean by +cf? Is it an interest only loan? or int+principal loan? and how does it turn from -cf to +cf? is it by reducing the loan amount? or by increased rental income?
regards
deananyone looking to do a H&L in somerley (northern suburbs) of perth… here’s their latest release;
http://www.somerly.com.au/somerlyemail/release15-16.pdf
personally I think it’s abit pricy – though saying that H&L up that way are now fetching $430k+
anyway, back to work[smiling]
Wayne Leech
http://www.WaynesGuide.com – Accommodation in Western Australia.
List your holiday home for FREE!What do you guys think of the somerly area?
The freeway extension and the train station station, must surely be a plus to the area.
Any ideas?
I bought when I was 19 so couldn’t really afford a house which is unfortunate because there are so many big blocks around this area..
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