Gents and ladies,
My next mission is to buy an old house with a block of land of at least 600sqm (with correct zoning) eventually subdivide and build a duplex, triplex or … I have been looking at Vic Park as I believe this place is going to boom. As I am only able to raise just over half a mill at present my initial cost of land /house is very important as is rental return prior to developing (at least a couple of years to gather finance before subdivision).
I definately want to be no more than a 3 minute drive from Perth City and have plotted out average house prices around the city and have noticed other areas closer to the city with cheaper land i.e.
Highgate
Leederville
Mt Lawley
Lathlain
RivervaleHighgate is unbelievably cheap for being one of the closest to the city. My question is will Highgate socio economic level rise in the future. It is so close to the city and when Northbridge becomes part of the city Highgate is bound to boom (in my opinion). am i right??
Also should I be waiting 3 months to purchase property as the prices are forecast to drop by a further 20% due to the huge surplus and future probable increase in interest rates
should i just stick to Vic Park??
As is every investor my main objective is growth and would appreciate a bit/lot of input on this.
Hello investingnovice,
I’m not familiar with Perth so will stay clear of giving you any suburb-specific advice.
However, I can offer you old foggy’s wisdom…
1. Buy where it is close to the City. Gentrification happens all the time.
2. Buy where there are infrastructures. Transport links, hospitals, good schools, close to employment.
3. Buy where you personally wouldn’t mind living in. The operative word being “mind.” In other words, you may not want to live there by choice, but if compelled by circumstances, you could. It wouldn’t kill you to make the move.
4. Buy a three-bedroom family home. This is the easiest property to sell.
5. Don’t buy houses on busy streets.
In terms of which suburb will boom? your guess is as good as mine.
Take care.
Angel
Thanks Angel much appreciated
As you have a longer horizon you could look into areas with future subdivision. If agents aren't aware of the blocks true future value, you tend to get a discount on the price. Be careful with agents as the word "potential" doesn't mean that you can 100% do what they think you can.
Especially with development sites I would always pull the title before I make a solid offer. Check the easements, sewer lines, drainage and anything else on the block. Make sure the topography on the site is good, this helps to keep site work costs down.
If you want better rental yields, you could go for a newer house on a retain and build site.
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