Between Two Rocks and Jurien – Perth

Aly,

We purchased a holiday shack between Two Rocks and Jurien about 5 yrs ago as a ‘get away house’. It’s on the top of a hill in Guilderton with 180 deg ocean views. We have it on casual holiday rental, and we sneak up there every now and again when it is vacant.

According to VGO figures, it’s been doing 35% cap. gain over the past 12 months…I’m not sure I quite believe that though…probably a low number of properties have turned over.

There’s a whopping difference between Lancelin and anything south vs Jurien. The coastal road only goes to Lancelin. If you want to get to Jurien you have to go around on the Brand Hwy. Apparently the plan has been to extend the road up to Jurien for the past 15 yrs or so, but as usual there is the usual bickering and arguing between State and Federal Govts over funding and timing.

In terms of cashflow on the place, it costs us about $4K p.a. to hold the place after tax. It’s gone up about $220K in value in those 5 years, so we’ve made 200K and had great holidays for free for the past 5 years. The wife and kids absolutely love it up there.

Takes 70 mins to get there from the Perth CBD. Much quicker than the 3 hour ‘down south’ thing. Best of all there is a lovely quiet fresh water river and no awful skanky estuary smells.

Best thing about Guilderton is it’s on septic tanks. The council has said “No more lots”. Apparently 414 lots is all the environment can handle and that’s it. So if you want to be near a fresh water river close to Perth with ocean views in a country atmosphere, there’s only one mechanism to cope with increased demand…higher prices. [biggrin]

Cheers,

Darryl Moore

“No point having a cake if you can’t eat it.”

it probly is a bit cheap and thus better value compared to the south, but don’t forget northern beaches are pretty windswept and barren. nothing against them but there isnt exactly a choice of wineries or boutique breweries. the mooted highway will be built one day I am sure – the state govt is very keen to take the pressure of the south west.

INVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT

dear aly,

I was also considering investing in the north either in lancelin or cervantes. There is a beautiful coastline there, and the houses are very cheap. I was there 1.5 years ago and checked out the prices. So many ppl are buying property down south, surely ppl will start looking to the north, especially with the developments from Joondalup onwards. However, I’m not sure what the rate of rent is up there. This is only my opinion. What are your thoughts?

We know Lancelin very well!
It is a hot windsurfing spot, and the fav with Euros over the European winter (I married one).
Have been looking at investing there for a number of years but the figures just never stack up. It comes down to the rental returns which are spasmodic and reliant upon holidayers/ winsurfers.It used to be cheaper than the southwest, but last 2-3 years has blown-out

There is no real industry base to support rentals other than Crayfishing season.
There is no new land in Lancelin and the GinGin shire have been saying more is two years away for the past four years – lots of complications with native title and coastal development for a start.

The road connecting Lancelin and Cervantes has been talked about for years, as has the sewer through the town up to hotel. There were some townhouses planned for development there about 4 years ago, but were canned when sewer and road put on hold.

Also, the type of house that exist there are classic fibro beach shacks that require lots of maintenance

The difference between Lancelin and the towns further north i.e. Cervantes, Jurien is the release of new land and more development friendly. Lancelin could be great but parochialism blocks a lot of possibilities.
The Seaview lots at Lancelin are a long way from beach and ocean views are distant.

I would go with Jurien or Ledge point – unless you’re a windsurfer! [sunny]