Hi All,
I am curious to know ones thoughts on purchasing an older house in Balga for ~$400k?
Do you think that this suburb going to be safer than some of the further out suburbs such as Success (which I recently made an awful lot of money on, but I dont think its going to keep going)
Thoughts?
CheersHi batesy,
Balga has had a substantial part of re-devlopment go through over the last couple of years. Prices have sky rocketed.
I don’t think I’d be purchasing there though, even if houses were $100K less. I’ve lived NOR for 23 years and although I’m a fair way from Balga no-way would I consider living there.
Still – if it’s an IP who cares if you’d live there it’s all about would someone else. IP – possibly (though still quite expensive compared to far more ‘secure’ surrounding suburbs), PPOR -definately not.
Just my thoughts and I’m sure other people from surrounds have totall different views. Nothing against the people their just going on my past experience [hair2]
Hi batesy
I think purchasing triplex/duplex site is a great strategy as I am sure Balga will continue to provide above average long term CG and enable u to add value by developing. The only problem is holding costs as opposed to purchasing a house in Success where you would probably achieve better rent and be able to claim depreciation.
I purchased in Westminster about 4 years ago now and it has been one of my best performing IPs – not only for CG but also the rents just keep going up and there is a huge demand for nice properties in this area. Just contact any RE agent in area they will confirm same.
My property is a very comfortable house on a triplex site which I plan to develop in the near future.
Even at $400,000 – triplex site around 8 kms from city is something worth considering.
If u can afford the holding costs I would be purchasing a triplex site in Balga with a view of developing.
Cheers, Marisa
(Hard work never killed anyone, buy hey why take a chance)
Hi all
I would check out the crime stats, have they fallen. not sure where eing the local police station and ask about the street and surrounding streets
Check with the local REA in the area re types of tenants.
check out the following post https://www.propertyinvesting.com/forum/topic/25557.html
Celeste
Hi all again
“not sure where eing the local police station and ask about the street and “
Sorry I got interrupted, I meant ” not sure where to check this, try ringing the local police station”
Sorry, hop it makes sense now
Celeste
Hi Again,
As I say I am new to this investing game, and I dont think I have missed the boat in terms of the boom. My PPOR was in Success up until 2 months ago. We were in the place for 11 months and we sold at just the right time. We made $150k with which we have put into a new townhouse we bought in Innaloo. its obviously more expensive, but closer to Perth (work), closer to the beach (yay) and generally just a better place to live. I am now looking to invest in a similarly located area in Perth. I think the outer suburbs have had their day. I personally wouldnt pay $400k – $500k to live that far out of Perth. I do think those prices there are just going to stay put for a number of years.
Anyways definately worth some more time and research.
Thanks all
BatesyIf you want an IP, then you will do very well in the area. Heaps of demand for rentals and as Marisa said, a bonus if you buy a duplex /triplex sized block because you have the development potential later. I wasn’t quite clear what you meant by “safe”though. Did you mean a safe investment? If you did, I believe it would be because the area is popular for tenants.Traditionally it has had a high percentage of people receiving Centrelink benefits, but there are also a lot of first home owners in the area now and new houses peppering the landscape. Homeswest can’t meet the needs of the area so thats why its attractive to the investor.
There’ll always be demand for rentals in the area because many community support services are based close by, eg in the Mirrabooka area. I’m not sure the crime rate there is any worse than a few dozen other suburbs I could name. Midland, Midvale, Lockeridge, Armadale have all had problems but they’ve still managed to appreciate in value well. Crime seems to happen in pockets and then moves around as the police clean it up and move the trouble makers on. The advice from a poster to check the crime rate rate through the police is good because it will provide some reassurance.We used to have PC Cops in WA ..not sure what its been replaced by, but you can get basic Crime Statistics from WAPOL for many areas..
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