Heres my crystal ball,
I’ll be more specific about the best place in Perth to invest.
Firstly the no.1 suburb for capital growth in the next 5 years will be Shoalwater and even more so will be a little part of Shoalwater called the Anchorage.
Secondly, Building in Shoalwater completes the perfect investment. Given that the cost of a house and land package in Shoalwter ( the Anchorage )costs about $220,000 and the median sale price in the Anchorage is approx $350,000.
Anyway thats my 2 cents worth
jayzacNice deal, good work
Who are you buying the house and land packs offVALE i mentioned some time back on the FORUM before they even cleared the Land- it’s owned by John ROBERTS (MULTIPLEX)
I believe a Melbourne Lawyer who owns land close by will be developing his parcel of land also now
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorQuote:Originally posted by cmd070:Nice deal, good work
Who are you buying the house and land packs offHomestart provide the best h&l packages. In particular speak to Jason. He does a lot of investing in the area
Good to hear that you have done well.
Though I would be causious jumping into Land & House packages now as they are not at all attractive in current climate regardless of the area. Land is too expensive.
There is more value at present in purchasing established homes, unless land was obtained at bargin price.
Builders are taking way too long (12 months++),to complete homes, to put it in perspective homes were built in 3-6 months a fews years back. Can you afford the interest during this period?Also the extras which I believe are a MUST in a rental property such as – aircon, retic etc could be additional costs with H&L.
Cheers, and good luck to all
Quote:Originally posted by Marisa:Good to hear that you have done well.
Though I would be causious jumping into Land & House packages now as they are not at all attractive in current climate regardless of the area. Land is too expensive.
There is more value at present in purchasing established homes, unless land was obtained at bargin price.
Builders are taking way too long (12 months++),to complete homes, to put it in perspective homes were built in 3-6 months a fews years back. Can you afford the interest during this period?Also the extras which I believe are a MUST in a rental property such as – aircon, retic etc could be additional costs with H&L.
Cheers, and good luck to all
I dont understand how you can say H+L packages arent attractive in the current climate. There is not a suburb in Perth where you cant build a house cheaper than an established property. eg. I can build a brand new 4×2 180m of living space double garage remote sectional door floor coverings, window treatments, monitored alarm, solar hws w/gas instantaneous booster, insulation, ducted evap aircon , fencing and landscaping in Canning vale for for $240,000. I challenge anyone to buy an established property in Canning vale for that price let alone something of that size and quality. I have taken that plan to Roy Weston in Canninvale and asked what i could reasonably expect for resale and they came back with approx $335,000 based on todays prices.
So this investment is based on todays prices. I am sure i can reasonably assume that during the construction period that property prices will increase. As an investor the time it takes to build is neither here or there as i have locked in the construction price and the land price so i therefore am achieving capital growth during that time.
As for interest during that time well interest repayments i have also borrowed from the lender so that affordability is not an issue.
I challenge anybody to find me an established property in any area that is worth $95000 more than the purchase price on a regular basis.
I wont enter into an investment unless i know that i have that sort of capital growth before i do the paperwork.Regards to all
JayzacHi jayzac
I have not specifically looked at Canning Vale, I was researching coastal suburbs. Generally looking at around 200 sq mtre H&L packages. Unfortunately builders did not provide all the items you stated, standard was generally aircond, window treatments, floor coverings, basic landscaping.Just had a quick look on the net for land prices in Canningvale, cheapest 292 sqmtre block for around $125,000 however this would be too small.
Seem to be around the $157,000+ mark (is this about right), place your home on this. I was looking at around $135,000, add interest approx. $18,000, not sure about selling costs around $10,000+ this makes it around $320,000.
It would be interesting to see your breakdown of figures and when you acquired your block etc.
I understand many people on this forum have made money with L&H packages, I am simply stating they dont seem to stack up at present. However, if you have managed to get a good deal, hope you will share and we will all be winners.
Regards, Marisa[biggrin]
jayzac,
i see you point, though I would also tend to agree with Marisa aswell. I think it depends on the area your are looking at. For example, I have been looking at land in jindalee – which is right next to quinns rock – no main roads divide the two.
Blocks are $210k plus, where in quins rock you can get 4×2 still for around $300k! I think it depends on the individual estate.
In regards to perth hot spots – what do people think of Merriwa? I’ve got 2 IPs there (one which has gone up $120 in 4 yrs! – which is now +) and another which has also epxerienced good growth.
The thing I’ve found with merriwa is that there is sub division behind it where blocks of land are getting released up around $150k – and you can still get houses in merriwa for around $200k. Therefore houses in this new sub division will be at least $300k plus – making houses in merriwa look fairly cheap!
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)waynel2
Great to hear you are doing so well. I also think Merriwa has got great potential, very affordable for coastal area, however from what I have heard you need to get into the right pocket of Merriwa, I think Seagrove was mentioned??The new release of land at $150,000 is a bonus. Great
Can you give me some information on rents in area and demand. Thanks
Cheers, Marisa
I tend to agree with some of what Marisa says – i’m more inclined to buy than build. I believe costs of building are going up 1-2% permonth (due to steel prices and other factors) the waiting list ‘is’ still long, hard to find quality tradesmen, bricks in short supply still ‘yada yada’.
I have an IP in CLARKSON and it’s gone + CF a while ago, i like the area and believe its still got CG value, agree with picking your area in Merriwa and good tenant selection.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Marisa,
We just sold some full turnkey H and L in Merriwa. Estimations are that the rental returns will start around 4.5%+ and rental demand is strong in the area. Given that the purchasers are seeking growth the rent return is of secondary consideration.
We managed to secure land for less than the $150K you are looking at.
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Hi Derek,
thanks for the rental info.
Rents are not attractive anywhere at present. I agree, I think Merriwa will only keep going up in value and still very reasonable prices.
Cheers, Marisa
Hi all,
In Jan 2005 I just finished renovating a 4×2 in Merriwa. It took me nearly 5 months to complete and cost me around $15k though the 4×2 I purchased at $185k is now valued at $240k +. I now have tenants in there paying $215 a week. My other 3×2 in Merriwa is paying $195 a week (This is the one that is +).
Yes, you are right – Merriwa definitely has it’s good and bad areas. (well none are really bad – though it’s just the age of houses that differ – plus half of merria having power lines, and the other half having underground power).
Seagrove Estate is the new estate in Merriwa. You can pick up land in this area for around $110k.
To pick the good and bad areas of the “original Merriwa†I would base it on the “power line†factor. Eg, the areas with underground power are known as the better areas and seem to fetch a better price. This is mainly in the northern end of the suburb.
The new estate being built to the east of Merriwa is Brighton’s Alanta Vista estate – which has blocks up around the $150k. These are selling fast – and once completed houses in that area will be up around the $300k + (going by the prices of existing homes in Brighton).
Cheers
Wayne
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)Hi all,
I think research is the key to building. Firstly land.
There is land available in Seagrove for $105000.A 180m house with everything include would cost about $110000 to build. The only problem with seagrove was the fact that there was no size coveneant on the construction, therefore a lot of small houses in the area, so some of the cheaper buys in seagrove are only 100-120m of living space. This really cant be compared to brighton where house sizes average 180-200m.
Just on the figures in canning vale there is land at 125000 which is 480m. Researching a good building company is so important. Find one that dosent increase prices from signing of PPA and a builder that does have everything included in there prices . I have.Very interesting post I have gone for cap gain as have p around fremantle but also aparts along river in mt lawley. but currently rivervale off the polly pipe apeals and some aparts are set for good growth as new aparts are being built from ascot up the hill to rivervale.
regards
Are there any thoughts on Medina, Orelia and Leda? According to REIWA these areas have had the greatest growth over the last period. Also what prospects are there in these areas in terms of further growth. I’ve had a drive through there and there’s quite a bit of industry along the coast (so not really a coastal suburb). Also its not all that close to the rail line to the city.
Jayzac – I cannot see how you could build in the Anchorage now for $220k. The blocks (in the unlikely event you could actually get one) are $120-$130k.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Quote:Originally posted by AUSPROP:Jayzac – I cannot see how you could build in the Anchorage now for $220k. The blocks (in the unlikely event you could actually get one) are $120-$130k.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
Some new blocks are becoming available in Anchorage around the 120 mark. Construction of 168m living area 4×2 $95000 siteworks $5000.
I have been to some home opens in anchorage recently and a siniliar house seems to have an asking price of about $350000 which is just incredible.regards
JayzacQuote:Originally posted by HotRod:Can I just ask why buy in Perth?[ohno]
You are basicly buying on a gamble that prices will go up (they generally do but can anyone tell what the price of a property will be in 12 months, impossible).[thumbsdownanim
Unless you manage to CF+ it you are just plain gambling with lots of money. I’d rather get a cut every month and there are places outside Perth that will do that for you easier for a B&H but you can do LO’s etc in Perth if you want to lock in you profit now.[thumbsupanim]
I’d rather be certain of something now rather than living in hope of something in the future.
[jerry]
Later……..
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Hi Jerry,1. Try to buy a vacant house and build a house yourself with a help of a builder and you are investing at 20-25% cheaper than an average property investor. This investment strategy allow you to enjoy a 20%-25% developer profit margin easily, giving more than 100% cash-to-cash return within 12 months period.
2. I’ve built 2 houses at the Anchorage Estate in Rockingham, WA 6168 in 2003-2004. My investment costs amounted to A$416,000 but today the 2 completed houses have a combined valuation price of A$650,000, after a 2 years period.
3. I am now building my third and fourth houses in the same estate, using the available equity in my first 2 houses, with no need for additional cash deposit.
4. Do your own due diligence and start investing now! You do not know what you are really missing out in the Perth property market over the last few years and again for the next few years.
5. If you really want to +cf, I will recommend that you buy a piece of vacant land and develop a house on it. Sell off the newly completed house for a quick A$60,000-A$70,000 profit after 12 months and it is much better than your +CF approach.
regards,
Kenneth KOHOriginally posted by Rigby:Medina near Kwinana has 3 x 1 houses for 130k. The new rail line will have a station near Medina and its between Freo and Rockingham. Any thoughts?
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Dear Rigby,Despite its past good growth in 2003/2004, Medina is a low-cost, affordable housing area.
Cheers,
Kenneth KOH
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