Hey guys,
Looking at WA at the moment. Strategy of buy, renovate and hold.
Looking at two markets- Armadale and Rockingham.
Both have good entry price and have multiple growth factors.
However both have a stigma of high crime and being a lower socio economic area.
As am knew to WA, just chasing some feedback and advice on anyone who has invested in the areas, general thoughts and recommendations. Both good and bad.
Cheers guys
I lived in Perth for a number of years and can confirm that there is a fairly solid stigma around both of those areas, Armadale at least has a public transport rail link to the city and beyond as well i think ECU (Edith Cowan University) has a uni Campus near there or on the same rail link back to town. so in terms of renting you should have no shortage of tennants.. as to quality well.. be carefull in that regard.
Connolly wrote:Hey guys,Looking at WA at the moment. Strategy of buy, renovate and hold.
Looking at two markets- Armadale and Rockingham.
Both have good entry price and have multiple growth factors.
However both have a stigma of high crime and being a lower socio economic area.
As am knew to WA, just chasing some feedback and advice on anyone who has invested in the areas, general thoughts and recommendations. Both good and bad.
Cheers guys
Hi Connolly
I am an investor and from Perth so hopefully can help you.Areas change, and areas which are "on the nose" today can also provide some great opportunities, I would never let this get in the way of a good deal. My best deals have always been in many cases the lower end.
Rockingham has some pockets which I would say have lower entry levels such as Coolbelup, which perhaps not as desirable, these areas will provide the higher yields, however on the flip side you can pay over $1M+ if you are purchasing close to the beachfront or development properties. If I was personally looking at Armadale/Rockingham areas I would consider beach side property first.
The Perth market is ripe for purchasing properties where you can add value, ie retain front property and build at the rear, this way you are not dependent on growth with an opportunity for cashflow.
Cheers, WI
Thanks for your responses guys. Really appreciate taking the time and offering thoughts.
I would personally not buy property in either area.
There is far too much developable land nearby for my liking and so not really a scarcity factor around houses. You just have to drive about 10 minutes out of Armadale and you are in the open fields of Byford.
Just my thoughts.
Luke
I'm with Luke in this case but if you had your mind all set for one of these two, then go for Rockingham.
– It has a lot of big industrial corporations around including Rio Tinto, Leighton (SLC) etc and a lot of fairly large size corporation are working at Henderson which is close to Rockingham.
– It is close to beach and 10 years down the track coastal lands will be much more valuable than inland suburbsI know that Armadale has train line and everything but its train line has its own channel on youtube!!!
I live in the Armadale area and I'm looking at buying in a 6k radius from Gosnells, Camillo, Kelmscott and Armadale. The best would be something closer to Kelmscott as that area is growing fast after Kelmscott I would probably choose Gosnells. The crime rate here in Armadale is no different to most areas and in my opinion Rockingham is worse! I've seen some terrible tenants in some of the houses I've looked at as they have not done anything to clean the place up for inspections etc and some really good tenants too. If the tenants are screened properly you should be able to sift out the bad one's. Rents in the above areas are roughly between $300 and $350.
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