Hi guys,
I’m looking at purchasing a coastal block as an investment. I’m hoping that I can achieve a minimum of a 15% increase each year for at least the first 3 years. At the end of these 3 years I will then weigh up whether to build a new house on it, and sell it off, or to sell it off as it is.
I’m mainly focusing on blocks of land in new estates, which have good infrastructure plans and potential for growth.
However I’m struggling to make a decision on where to purchase the block?
I have a budget of up to 210k and have the support to negative gear this block for at least 3 years.
At the moment I’m deciding whether to;
a) Purchase a block in Perth metro for around $200k that is on the coastal strip (northern suburbs). Though which doesn’t have ocean views. Or to;
b) Purchase a block in a regional town that has outstanding ocean views and is much bigger, though the potential of growth is slightly uncertain compared to the Perth block. (In area’s such as Jurien bay, Lancelin, Geraldton and so on)
If you had to choose either of the above, which one would you choose and why?
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)Hey Wayne,
As you havn’t had a response yet I will quickly ask a question. Where are you looking to buy a coastal block for $200k on the northern coastal strip? Am guessing Mundarie or further north.
Either or, you really can’t go too wrong with a coastal property, at least for CG. In certain regional coastal areas, you may even get a property with an existing house so you can offset the cost with some rent. I would be looking regional as oceans views, in my opinion, are a gold mine and will be in limited supply.
Just my humble opinion!
Hi Jhopper!
Thanks for the reply:) Yep you guessed right:)
I have considered looking down Mandurah/Rockingham area – though I live up near Mindarie and consider that my “area of expertise”
That was my line of thinking with the “coastal view” blocks, as in the Perth Metro area nearly all houses with ocean views are a minimum of $500k – $1,000,000 which would have to flow out to the regional areas – eventually!
My next decision though – is trying to identify whether I can make at least 15% increase each year on the block, for it to be worth it. Do you think this is possible?
Do you live in Perth?
Cheers!
Wayne
Wayne.
I have similar theories to you. Bought in North Beach, Perth about 12 months ago and am about 300m to the beach. No water views but easy walk. Duplex but was a bargain and has gone up 25% in those 12 months. Pretty happy!!
Was actually talking to a mate today about north coastal properties this morning and that it is worth a look. More around Lancelin and Servantes but havn’t investigated thoroughly as yet. Wouldn’t like to comment on a 15% year on year increase until I have looked further. Gut feel says yes, but need to back it up!
jhopper,
yeah – my 15% does seem a little high – though according to the past increases 0f 25-30% – and if the infrastructure plans go ahead I think it will pull of:)
Yeah i’ve been looking at lancelin too – I’m also heading up to jurien bay at easter to have a look what’s happening up there – so i’ll keep u posted:)
So what do you do in Perth? Do you live in the Northern Suburbs?
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)I am planning a camping trip up that way sometime to do a bit of windsurfing and property scouting myself. Keep me posted on how you go!
Live in North Beach (close to Trigg) and am a Engineering and Contracts Manager in the construction game. Came over from Sydney 2 years ago and not planning on going back!!
From your website, you seem to have more experience up north than you are letting on![biggrin] Bit of a development up in Geradlton!!
will do:) Yeah Trigg’s a nice area!!
na, those websites are “Realestate Portals” I own – the developments listed are by agent and our clients – but saying that I do get to see what’s happening up that way:)
check out http://www.hld.com.au – they develop alot up in Geraldton – their even developing on the Abrohlos Islands!
also check out the marina up in exmouth (www.landcorp.com.au). If I had the money I would have definately bought up there! $230k for ocean views and your own jetty – doesn’t get much better than that! Though unforutnately, all these blocks sold out in 3 days!
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)
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